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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://docs.iza.org/dp8190.pdf (application/pdf)

Related works:
Working Paper: Availability of Family-Friendly Work Practices and Implicit Wage Costs: New Evidence from Canada (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp8190

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().