Exploring Human Capital Depreciation and Gender-Specific Wage Trends: Evidence from Italy

Over nearly four decades, the depreciation of human capital and its influence on wage trajectories have varied across education levels in Italy. This analysis focuses on the dynamic relationship between education, human capital depreciation, and labor market outcomes, drawing from data spanning 1980 to 2019. By examining the wage returns associated with primary, secondary, and tertiary education, the findings reveal distinct patterns in the depreciation rates of human capital across these levels. Additionally, gender-specific wage disparities are evident, particularly among highly educated women, who experience significantly lower returns on their human capital compared to men. The results also show that secondary education leads to a notable increase in wage returns compared to lower secondary education, along with a reduction in overall working hours. These insights shed light on the broader implications of educational investments, offering valuable guidance for policies aimed at reducing gender wage gaps and promoting inclusive economic growth.