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

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  • Ali Fakih

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.

Suggested Citation

  • Ali Fakih, 2014. "Availability of Family-Friendly Work Practices and Implicit Wage Costs: New Evidence from Canada," CIRANO Working Papers 2014s-33, CIRANO.
    • Handle: RePEc:cir:cirwor:2014s-33
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    6. Verena Lauber & Sarah Reiter & Johanna Storck, 2015. "Familienfreundlichkeit in Unternehmen - Status Quo in Deutschland und Forschungsstand," DIW Roundup: Politik im Fokus 77, DIW Berlin, German Institute for Economic Research.
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    More about this item

    Keywords

    Family-friendly care practices; linked employer-employee data; simultaneous probit model; wage equation.;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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