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Work-Family Benefits: Which Ones Maximize Profits?

Christine Siegwarth Meyer, Swati Mukerjee and Ann Sestero
Journal of Managerial Issues
Vol. 13, No. 1 (Spring 2001), pp. 28-44
Stable URL: http://www.jstor.org/stable/40604332
Page Count: 17
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Work-Family Benefits: Which Ones Maximize Profits?
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Abstract

The objectives of this study are to determine which work-family programs have a significant effect on the profitability of the firm and to measure the impact of individual programs. Anecdotal evidence suggests that firms are increasing the availability of work-family benefits to their employees, in part because they anticipate an increase in productivity, yet there is a lacuna in the literature regarding their impact. Using survey data from Working Mother and employing a fixed effects model, we find that not all programs have the same or even a positive impact on profits. For example, increasing the number of children in subsidized daycare programs reduces profitability, suggesting that, within our sample, this benefit is over-provided. In the area of alternative scheduling programs, increasing the number of employees working at home has a positive impact on profits while job sharing has the opposite effect. The significance of the study is that the results provide objective guidelines to firms seeking to introduce or expand work-family benefits.

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