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Fringe Benefits and Inequality in the Labor Market

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  • Wankyo Chung

Abstract

This study shows that when fringe benefits are accounted for, inequality increases at a point in time and grew faster from 1987 to 1994. Several alternative explanations of the observed discrepancies between wage inequality and compensation inequality are assessed. The evidence is that the disproportionately greater decline in income for less skilled workers is responsible for the greater decline in health insurance coverage, which in turn contributes to greater inequality growth when fringe benefits are accounted for. (JEL J3) Copyright 2003, Oxford University Press.

Suggested Citation

  • Wankyo Chung, 2003. "Fringe Benefits and Inequality in the Labor Market," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 517-529, July.
    • Handle: RePEc:oup:ecinqu:v:41:y:2003:i:3:p:517-529
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    File URL: http://hdl.handle.net/10.1093/ei/cbg025
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    Cited by:

    1. Mok, Wallace & Siddique, Zahra, 2009. "Racial Differences in Fringe Benefits and Compensation," IZA Discussion Papers 4435, Institute of Labor Economics (IZA).
    2. Grace Weishi Gu & Eswar Prasad & Thomas Moehrle, 2020. "New Evidence on Cyclical Variation in Average Labor Costs in the United States," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 966-979, December.
    3. Burkhauser, Richard V. & Larrimore, Jeff & Simon, Kosali I., 2012. "A "Second Opinion" on the Economic Health of the American Middle Class," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(1), pages 7-32, March.
    4. Grace Weishi Gu & Eswar Prasad, 2018. "New Evidence on Cyclical Variation in Labor Costs in the U.S," NBER Working Papers 24266, National Bureau of Economic Research, Inc.
    5. Nizalova, Olena Y., 2014. "Inequality in Total Returns to Work in Ukraine: Taking a Closer Look at Workplace (Dis)amenities," IZA Discussion Papers 8322, Institute of Labor Economics (IZA).
    6. Richard V. Burkhauser & Jeff Larrimore & Kosali Simon, 2013. "Measuring The Impact Of Valuing Health Insurance On Levels And Trends In Inequality And How The Affordable Care Act Of 2010 Could Affect Them," Contemporary Economic Policy, Western Economic Association International, vol. 31(4), pages 779-794, October.
    7. Robert Kaestner & Darren Lubotsky, 2016. "Health Insurance and Income Inequality," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 53-78, Spring.
    8. Helen Levy, 2006. "Health Insurance and the Wage Gap," NBER Working Papers 11975, National Bureau of Economic Research, Inc.
    9. Kevin F. Hallock & Xin Jin & Michael Waldman, 2022. "The total compensation gap, wage gap and benefit gap between workers with and without a disability," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 3-31, March.

    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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