Title: The Implicit Market for Family Friendly Work Practice
Reference Number: 1053
Publication Date: January 2003

John S. Heywood
University of Wisconsin-Milwaukee

W.S. Siebert
University of Birmingham

Xiangdong Wei
Lingnan University

The observation that a worker has a family friendly job reflects both the worker's decision to search for such a job and employer's decision to provide it to that worker. Previous research estimating the determinants of family friendly work practices has been severely limited by the inability to distinguish between these two decisions. Using linked employer-employee data and partial observability probit models, this paper provides the first empirical identification of the determinants of these two decisions. In addition to confirming the role of many worker and firm chracteristics, the results are consistent with theoretical model in which family friendly work practices are valuable to workers but costly to employers. Specifically, as predicted by a hedonic model of the labour market, firms providing such practices offer lower wages, all else equal.

Last modified: 05/20/2003