Work and family programs and productivity Estimates applying a production function model

• Published in: International journal of manpower Vol. 25; no. 8; pp. 714 - 728
• Main Authors: Clifton, Thomas J, Shepard, Edward
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2004
• Subjects: Absenteeism; Compensation; Costs; Employees; Expenditures; Impact analysis; Job sharing; Labor force; Labor market; Maternity & paternity leaves; Production functions; Productivity; Statistical analysis; Studies; Wage differential; Wages & salaries; Work life programs; Workers; United States > US
• DOI: 10.1108/01437720410570036
• ISSN: 0143-7720

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.