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Fringe benefits and the demand for part-time workers

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  • Thomas Buchmueller

Abstract

In the US, tax code nondiscrimination rules and other institutional constraints require employers to offer the same fringe benefits to all full-time workers, but allow them to deny benefits to part-time workers. As a result, firms that offer generous fringe benefits to higher skill workers have an incentive to hire lower skill workers on a part-time or contingent basis. This paper uses cross-section establishment data to investigate the effect of employer-provided fringe benefits on the demand for part-time workers. The results indicate that firms that offer more generous fringe benefits make greater use of low wage part-time workers; there is no significant relationship between fringe benefits and the proportion of high wage workers employed part-time.

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  • Thomas Buchmueller, 1999. "Fringe benefits and the demand for part-time workers," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 551-563.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:551-563
    DOI: 10.1080/000368499324002
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    Cited by:

    1. Paige Qin & Michael Chernew, 2013. "Compensating Wage Differentials and the Impact of Health Insurance in the Public Sector on Wages and Hours," NBER Chapters, in: State and Local Health Plans for Active and Retired Public Employees, National Bureau of Economic Research, Inc.
    2. Jennifer Feenstra Schultz & David Doorn, 2009. "Employer Health Benefit Costs and Demand for Part-Time Labor," Working Papers 09-08, Center for Economic Studies, U.S. Census Bureau.
    3. Rob Euwals & Maurice Hogerbrugge, 2004. "Explaining the growth of part-time employment; factors of supply and demand," CPB Discussion Paper 31.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Euwals, Rob & ,, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers.
    5. Youjin Hahn & Myungkyu Shim & Hee-Seung Yang, 2021. "Industry Variations in Health Plans and Dynamic Employment Substitution," Journal of Labor Research, Springer, vol. 42(3), pages 449-467, December.
    6. Euwals, Rob & Hogerbrugge, Maurice, 2004. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," IZA Discussion Papers 1124, Institute of Labor Economics (IZA).
    7. C. J. Krizan & Adela Luque & Alice Zawacki, 2014. "The Effect Of Employer Health Insurance Offering On The Growth And Survival Of Small Business Prior To The Affordable Care Act," Working Papers 14-22, Center for Economic Studies, U.S. Census Bureau.
    8. Sarah Dolfin, 2006. "An examination of firms' employment costs," Applied Economics, Taylor & Francis Journals, vol. 38(8), pages 861-878.
    9. Françoise Delmez & Vincent Vandenberghe, 2017. "Working long hours: less productive but less costly? Firm-level evidence from Belgium," LIDAM Discussion Papers IRES 2017022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    10. Qin, Paige & Chernew, Michael, 2014. "Compensating wage differentials and the impact of health insurance in the public sector on wages and hours," Journal of Health Economics, Elsevier, vol. 38(C), pages 77-87.
    11. Rob Euwals & Maurice Hogerbrugge, 2004. "Explaining the growth of part-time employment; factors of supply and demand," CPB Discussion Paper 31, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Juan R. Cuadrado Roura & Carlos Iglesias Fernández & Raquel Llorente Heras, 2007. "Regional differences in women´s part time employment. An analysis of supply and demand," Working Papers 03/07, Instituto Universitario de Análisis Económico y Social.
    13. Sang-Hyop Lee & Gerard Russo & Lawrence H. Nitz & Abdul Jabbar, 2005. "The Effect of Mandatory Employer-Sponsored Insurance (ESI) on Health Insurance Coverage and Labor Force Utilization in Hawaii: Evidence from the Current Population Survey (CPS) 1994-2004," Working Papers 200512, University of Hawaii at Manoa, Department of Economics.

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