The Implicit Costs and Benefits of Family Friendly Work Practices
42 Pages Posted: 6 May 2005
Date Written: May 2005
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 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.
Keywords: family friendly work practices, hedonic equilibrium, compensating wage differential, legislative impact assessment
JEL Classification: J31, J32
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Time and Timing Costs of Market Work, and Their Implications for Retirement
-
Time Use Research and Time Use Data: Actual Topics and New Frontiers
By Joachim Merz
-
By Joyce P. Jacobsen and Peter Kooreman
-
Product Market Regulation and Labor Market Outcomes: How Can Deregulation Create Jobs?
-
Togetherness: Spouses' Synchronous Leisure, and the Impact of Children