The Effects of Work-Life Benefits on Employment Outcomes in Canada: A Multivariate Analysis

Tony Fang, Byron Lee (), Andrew R. Timming () and Di Fan ()
Additional contact information
Byron Lee: China Europe International Business School
Andrew R. Timming: University of Western Australia
Di Fan: University of Western Australia

No 12322, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using the longitudinal Workplace and Employee Survey of Canada, we examine the association between the provision of work-life benefits and various employment outcomes in the Canadian labour market. Whilst the theory of compensating wage differentials hypothesizes an inevitable trade-off between higher wages and non-wage benefits, the efficiency wage theory suggests otherwise. The empirical evidence broadly supports the efficiency wage theory, thus rejecting the compensating wage differentials theory. If bundled appropriately, it appears that work-life benefits are positively associated with increased wages, in addition to a greater number of promotions, enhanced employee morale in the form of job satisfaction, and improved employee retention. The study concludes that organizations and employees can both profit when work-life benefits are offered.

Keywords: job satisfaction; efficiency wage theory; compensating wage differentials; promotion; wages; work-life benefits (search for similar items in EconPapers)
JEL-codes: J32 J33 J38 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2019-04
New Economics Papers: this item is included in nep-lma
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Citations: View citations in EconPapers (1)

Forthcoming - published in: Relations industrielles/Industrial Relations, 2019, 74(2), 323-351.

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