Work and family programs and productivity

This paper provides statistical evidence about the effect of work and family programs on productivity using a sample of large Fortune 500 companies in 30 industries in the US economy. Cross-sectional firm-level data on work and family programs are combined with financial data on companies to estimat...

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Published inInternational journal of manpower Vol. 25; no. 8; pp. 714 - 728
Main Authors Clifton, Thomas J., Shepard, Edward
Format Journal Article
LanguageEnglish
Published Emerald Group Publishing Limited 01.12.2004
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Abstract This paper provides statistical evidence about the effect of work and family programs on productivity using a sample of large Fortune 500 companies in 30 industries in the US economy. Cross-sectional firm-level data on work and family programs are combined with financial data on companies to estimate production functions. Alternative specifications and estimation techniques are applied, including ordinary least squares and two-stage least squares, with controls or corrections for union status, capital quality, heteroskedasticity, and possible endogeneity of company work-family programs. The empirical results suggest that work-family support programs succeed in improving productivity. The positive effects on firm performance may help to explain the growth and spread of work and family programs among US corporations in recent years. Further research is needed to evaluate the economic costs of work and family programs and to identify the mechanisms whereby work and family programs result in improved productivity.
AbstractList This paper provides statistical evidence about the effect of work and family programs on productivity using a sample of large Fortune 500 companies in 30 industries in the US economy. Cross-sectional firm-level data on work and family programs are combined with financial data on companies to estimate production functions. Alternative specifications and estimation techniques are applied, including ordinary least squares and two-stage least squares, with controls or corrections for union status, capital quality, heteroskedasticity, and possible endogeneity of company work-family programs. The empirical results suggest that work-family support programs succeed in improving productivity. The positive effects on firm performance may help to explain the growth and spread of work and family programs among US corporations in recent years. Further research is needed to evaluate the economic costs of work and family programs and to identify the mechanisms whereby work and family programs result in improved productivity.
This paper provides statistical evidence about the effect of work and family programs on productivity using a sample of large Fortune 500 companies in 30 industries in the US economy. Crosssectional firmlevel data on work and family programs are combined with financial data on companies to estimate production functions. Alternative specifications and estimation techniques are applied, including ordinary least squares and twostage least squares, with controls or corrections for union status, capital quality, heteroskedasticity, and possible endogeneity of company workfamily programs. The empirical results suggest that workfamily support programs succeed in improving productivity. The positive effects on firm performance may help to explain the growth and spread of work and family programs among US corporations in recent years. Further research is needed to evaluate the economic costs of work and family programs and to identify the mechanisms whereby work and family programs result in improved productivity.
Author Clifton, Thomas J.
Shepard, Edward
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Keywords Economics
Family friendly organizations
United States of America
Labour market
Productivity rate
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SubjectTerms Economics
Family friendly organizations
Labour market
Productivity rate
United States of America
Title Work and family programs and productivity
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