Is there a flexiglass ceiling? Flexible work arrangements and wages in the United States

Employment contracts that offer employees flexibility in their work schedules or locations are often touted as politically and economically viable solutions to contemporary employees' needs to balance work, leisure, and family. However, little is known about their career consequences or their impact on aggregate levels of gender inequality in labor market outcomes. This paper outlines possible sources of an association between flexible work and wages, then quantifies this association using data from the 2000 and 2001 Current Population Surveys (CPS). Results indicate that flexible-work employees earn wages that are at least equal to, and often higher than, their fixed-schedule and fixed-location counterparts. These wage premiums are greater in nonmanual occupations, but do not vary substantially by gender or parental status. The results contradict the notion of a “flexiglass ceiling” in wages, but also suggest that flexible work arrangements do little to reduce the gender gap in pay or the motherhood wage penalty.