The Implicit Costs and Benefits of Family Friendly Work Practices
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 show that the ability to confirm this compensating wage differential depends critically on an appropriate treatment model designed to purge typical estimates of the income effect. We find that family friendly jobs may be associated with as much as a 20 percent reduction in earnings. Our estimates can be used to inform impact assessments of new UK legislation extending family friendly practices.
|Date of creation:||May 2005|
|Publication status:||published in: Oxford Economic Papers, 2007, 59 (2), 275-300|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1978.
"Dummy Endogenous Variables in a Simultaneous Equation System,"
Econometric Society, vol. 46(4), pages 931-59, July.
- James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
- Viscusi, W Kip, 1978. "Wealth Effects and Earnings Premiums for Job Hazards," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 408-16, August.
- Duncan, Greg J & Stafford, Frank P, 1980. "Do Union Members Receive Compensating Wage Differentials?," American Economic Review, American Economic Association, vol. 70(3), pages 355-371, June.
- Nielsen, Helena Skyt & Simonsen, Marianne & Verner, Mette, 2002.
"Does the Gap in Family-friendly Policies Drive the Family Gap?,"
02-19, University of Aarhus, Aarhus School of Business, Department of Economics.
- Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
- Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, "undated". "Does the Gap in Family-Friendly Policies Drive the Family Gap?," Economics Working Papers 2003-1, Department of Economics and Business Economics, Aarhus University.
- John W. Budd & Karen Mumford, 2004.
"Trade Unions and Family-Friendly Policies in Britain,"
Cornell University, ILR School, vol. 57(2), pages 204-222, January.
- John W. Budd & Karen Mumford, . "Trade Unions and Family Friendly Policies in Britain," Working Papers 0302, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
- Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
- Keith A. Bender & Susan M. Donohue & John S. Heywood, 2005. "Job satisfaction and gender segregation," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 479-496, July.
- Susan N. Houseman, .
"Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey,"
Upjohn Working Papers and Journal Articles
snh2001, W.E. Upjohn Institute for Employment Research.
- Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
- Susan N. Houseman, 2000. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," Upjohn Working Papers and Journal Articles 01-67, W.E. Upjohn Institute for Employment Research.
- Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July.
- Yoshio Higuchi & Jane Waldfogel & Masahiro Abe, 1999. "Family leave policies and women's retention after childbirth: Evidence from the United States, Britain, and Japan," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 523-545.
- Paul Lanoie & Francois Raymond & Bruce Shearer, 2001. "Work sharing and productivity: evidence from firm level data," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1213-1220.
- Wood, Robert G & Corcoran, Mary E & Courant, Paul N, 1993. "Pay Differences among the Highly Paid: The Male-Female Earnings Gap in Lawyers' Salaries," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 417-41, July.
- Morley Gunderson & Douglas Hyatt, 2001. "Workplace risks and wages: Canadian evidence from alternative models," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 377-395, May.
- John S. Heywood & Uwe Jirjahn, 2004. "Teams, Teamwork and Absence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 765-782, December.
- Cynthia L. Gramm & John F. Schnell, 2001. "The Use of Flexible Staffing Arrangements in Core Production Jobs," ILR Review, Cornell University, ILR School, vol. 54(2), pages 245-258, January.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1581. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.