Job Satisfaction and Wages of Family Employees

Abstract

Although they represent a sizable occupational group, little is known about family employees. Using utility theory and the theory of compensating wage differentials, we hypothesize that family employees have higher levels of job satisfaction and lower wages relative to regular employees. We present several regressions based on a large cross-country panel data set that support our hypotheses, and we discuss our study's implications for research on family businesses and the labor market.