Start Date

12-13-2015

Description

Using novel data collected from a career intelligence website, we study whether and why high-tech firms rely more heavily on non-wage benefits, such as free meals, transportation subsidies, and athletic facilities (“work-related perks”). We find that employers engaged in IT innovation are more likely to offer work-related perks, but not more traditional non-wage benefits such as health insurance and retirement. Additionally, we find that these perks are correlated with demand for on-the-job skill acquisition and the longer work hours this skill acquisition requires. These findings suggest that high-tech firms offer work-related perks to attract and motivate IT workers who can quickly adapt to technological change.

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Dec 13th, 12:00 AM

Why do high-tech firms offer perks at work?

Using novel data collected from a career intelligence website, we study whether and why high-tech firms rely more heavily on non-wage benefits, such as free meals, transportation subsidies, and athletic facilities (“work-related perks”). We find that employers engaged in IT innovation are more likely to offer work-related perks, but not more traditional non-wage benefits such as health insurance and retirement. Additionally, we find that these perks are correlated with demand for on-the-job skill acquisition and the longer work hours this skill acquisition requires. These findings suggest that high-tech firms offer work-related perks to attract and motivate IT workers who can quickly adapt to technological change.