Discontinuous career patterns and manager remuneration : exploring the role of career interruptions and experience abroad

RWTH Publications (RWTH Aachen)

Abstract

Although employees often strive for continuous career paths, periods during which the career was interrupted or even terminated are quite common. This thesis empirically investigates the relationship between discontinuities in career paths and earnings. Based on human capital theory and signaling considerations in connection with stigma effects, the influence of earlier career interruptions, in particular periods of unemployment and parental leave, on employees’ subsequent earnings is investigated. In addition, the relationship between experience abroad and earnings is examined. For this purpose, a "career capital" framework is applied, which takes human, social and psychological capital into account. To answer the research questions, Mincer earnings functions are estimated using pooled OLS regressions. This thesis contributes to the existing literature by additionally investigating the relationship between various career interruptions and different compensation components, in particular, bonus payments in addition to fixed salaries. In addition, the underlying dataset also allows distinguishing between different types of experience abroad and to control for its amount in addition to its presence. The findings obtained in this thesis offer implications for policymakers, practitioners, and for subsequent research.

Authors 1

1. Benedikt Gerst corresponding Aachen

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen