Blessing or Curse?

Abstract

Little empirical study has been devoted to the impact of employer-sponsored work-family policies on women’s wages. These policies include flexible scheduling, telecommuting, reduced hours of work, and child care assistance. Although these work innovations may make family caregiving easier, many women fear that lower wage growth and blocked mobility will result from the use of these policies. This project followed a midwestern cohort of employed women for 7 years after childbirth, using detailed information about coverage and use of family responsive policies across all jobs held during that period. Results show consistent negative effects of policy use on wage growth after controlling for many productivity-related characteristics, though the effects vary in size depending on the specific policy used, workers’ job mobility, and the respondent’s managerial or professional status.