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Availability of Family-Friendly Work Practices and Implicit Wage Costs: New Evidence from Canada

Ali Fakih ()

No 8190, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using Canadian linked employer-employee data covering the period 1999-2005, I examine the determinants of the availability of family-friendly "care" practices and the impact of such practices on wages. The results show that the provision of family-friendly practices is not mainly derived from socio-demographic characteristics of workers but rather from job- and firm-related factors. The findings also reveal that there is a trade-off between the provision of family-friendly practices and earnings indicating the existence of an implicit market in which workers face reductions in their wages. This result supports the hypothesis that family-friendly benefits are to some extent conceived as a gift or a signal that employers care about employees' family responsibilities and, in return, employees are willing to “buy” these practices and thus accept a wage offset.

Keywords: family-friendly "care" practices; linked employer-employee data; simultaneous probit model; wage equation (search for similar items in EconPapers)
JEL-codes: J13 J32 J70 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014-05
New Economics Papers: this item is included in nep-lab and nep-lma
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Working Paper: Availability of Family-Friendly Work Practices and Implicit Wage Costs: New Evidence from Canada (2014) Downloads
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