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The implicit wage costs of family friendly work practices

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Author Info

  • John S. Heywood
  • W. Stanley Siebert
  • Xiangdong Wei

Abstract

This paper posits that the provision of family friendly practices is, on balance, costly to firms and valuable to workers. As a consequence, we anticipate the emergence of a hedonic equilibrium in which workers provided with such practices face an implicit reduction in their earnings. Using WERS98 linked employer-employee data, we find that workers overstate their access to family friendly practices. We also find a surprisingly high compensating wage differential of around 20%. However, this result depends critically on a treatment model designed to purge typical estimates of the income effect. It is also largely associated with indicators of flexible working schedules and cannot be replicated for workplace nursery support or working at home. Copyright 2007 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpm006
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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 59 (2007)
Issue (Month): 2 (April)
Pages: 275-300

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Handle: RePEc:oup:oxecpp:v:59:y:2007:i:2:p:275-300

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Cited by:
  1. repec:lan:wpaper:3171 is not listed on IDEAS
  2. Fakih, Ali, 2014. "Availability of Family-Friendly Work Practices and Implicit Wage Costs: New Evidence from Canada," IZA Discussion Papers 8190, Institute for the Study of Labor (IZA).
  3. repec:lan:wpaper:2922 is not listed on IDEAS
  4. MORIKAWA Masayuki, 2010. "Insecurity of Employment and Work-Life Balance: From the viewpoint of compensating wage differentials," Discussion papers 10052, Research Institute of Economy, Trade and Industry (RIETI).
  5. Joyce P. Jacobsen, 2008. "Accommodating Families," Wesleyan Economics Working Papers 2008-004, Wesleyan University, Department of Economics.
  6. Siebert, W. Stanley & Peng, Fei & Maimaiti, Yasheng, 2011. "HRM Practices and Performance of Family-Run Workplaces: Evidence from the 2004 WERS," IZA Discussion Papers 5899, Institute for the Study of Labor (IZA).
  7. Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 281-298, December.
  8. C Green & J S Heywood, 2007. "Are flexible contracts bad for workers? Evidence from job satisfaction data," Working Papers 590927, Lancaster University Management School, Economics Department.
  9. repec:lan:wpaper:3016 is not listed on IDEAS

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