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Fringe benefits and the demand for part-time workers

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  • Thomas Buchmueller
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    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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    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324002
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 31 (1999)
    Issue (Month): 5 ()
    Pages: 551-563

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    Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:551-563

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    Web page: http://www.tandfonline.com/RAEC20

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    Cited by:
    1. Sarah Dolfin, 2006. "An examination of firms' employment costs," Applied Economics, Taylor & Francis Journals, vol. 38(8), pages 861-878.
    2. Euwals, Rob & Hogerbrugge, Maurice, 2004. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," IZA Discussion Papers 1124, Institute for the Study of Labor (IZA).
    3. Euwals, Rob & Hogerbrugge, Maurice, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

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