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Are family-friendly workplace practices a valuable firm resource?

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  • Nick Bloom
  • Tobias Kretschmer
  • John Van Reenen

Abstract

We study the determinants and consequences of family-friendly workplace practices (FFWP) using a sample of over 450 manufacturing firms in Germany, France, U.K., and U.S. We find a positive correlation between firm productivity and FFWP. This association disappears, however, once we control for a measure of the quality of management practices. We further find that firms with a higher proportion of female managers and more skilled workers, as well as well-managed firms, tend to implement more FFWP. Conversely, a firm's environment does not have a significant impact on the FFWP it provides.
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Suggested Citation

  • Nick Bloom & Tobias Kretschmer & John Van Reenen, 2011. "Are family-friendly workplace practices a valuable firm resource?," Strategic Management Journal, Wiley Blackwell, vol. 32(4), pages 343-367, April.
  • Handle: RePEc:bla:stratm:v:32:y:2011:i:4:p:343-367
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    1. Matthew Gray & Jacqueline Tudball, 2004. "Family-friendly work practices: differences within and between workplaces," Labor and Demography 0405003, University Library of Munich, Germany.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
    3. Nick Bloom & John Van Reenen, 2010. "Why do Management Practices Differ Across Firms and Countries?," CEP Occasional Papers 26, Centre for Economic Performance, LSE.
    4. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
    5. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-746, August.
    6. Robert Drago & Mark Wooden, 1992. "The Determinants of Labor Absence: Economic Factors and Workgroup Norms across Countries," ILR Review, Cornell University, ILR School, vol. 45(4), pages 764-778, July.
    7. Nicholas Bloom & John Van Reenen, 2010. "New Approaches to Surveying Organizations," American Economic Review, American Economic Association, vol. 100(2), pages 105-109, May.
    8. Gerhart, B. & Milkovick, G.T., 1992. "Employee Compensation: Research and Practice," Papers 92-26, Cornell - Center for Advanced Human Resource Studies.
    9. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-224, Winter.
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    More about this item

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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