Effects of 'Family-friendly Fringe' Benefits on Wages in Japan

This paper analyses the effect of family-friendly policies on wages. Using the full treatment effect model, the survey on Company Fringe Benefits 2002 was analysed. While the gender wage gap was confirmed, the effect of family-friendly policies on wages was found to differ from males to females. For instance, childcare and elder care related policies tended to be used mostly by females. As a result, these policies only had a negative impact on female wages. In turn, results of probit estimates indicated that productive workers tend to use more childcare and elder care related policies. It is suggested, therefore, that rewards and retention strategies should be provided to ensure productive workers.