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Employer-Provided Benefit Plans, Workforce Composition and Firm Outcomes

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Author Info
Anja Decressin
Julia Lane
Kristin McCue
Martha Stinson

Additional information is available for the following registered author(s):

Abstract

What do firms gain by offering benefits? Economists have proposed two payoffs: (i) benefits may be a more cost-effective form of compensation than wages for employees facing high marginal tax rates, and (ii) benefits may attract a more stable, skilled workforce. Both should improve firm outcomes, but we have little evidence on this matter. This paper exploits a rich new dataset to examine how firm productivity and survival are related to benefit offering, and finds that benefit-offering firms have higher productivity and higher survival rates. Differences in firm and workforce characteristics explain some but not all of the differences in outcomes.

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File URL: http://lehd.did.census.gov/led/library/techpapers/tp-2005-01.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau in its series Technical Papers with number 2005-01.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 45 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:cen:tpaper:2005-01

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Web page: http://lehd.did.census.gov/led/library/techpapers.html

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Anja Decressin & Kristin McCue & Martha Stinson, 2003. "Describing the Form 5500-Business Register Match," Technical Papers 2003-05, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  2. Burgess, Simon & Lane, Julia & Stevens, David, 2000. "Job Flows, Worker Flows, and Churning," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 473-502, July. [Downloadable!] (restricted)
    Other versions:
  3. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September. [Downloadable!] (restricted)
    Other versions:
  4. William E. Even & David A. Macpherson, 1996. "Employer size and labor turnover: The role of pensions," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(4), pages 707-728, July.
  5. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier. [Downloadable!] (restricted)
    Other versions:
  6. Dan A. Black, 1996. "Family Health Benefits and Worker Turnover," Labor and Demography 9604001, EconWPA. [Downloadable!]
  7. John M. Abowd & John Haltiwanger & Ron Jarmin & Julia Lane & Paul Lengermann & Kristin McCue & Kevin McKinney & Kristin Sandusky, 2005. "The Relation among Human Capital, Productivity, and Market Value: Building Up from Micro Evidence," NBER Chapters, in: Measuring Capital in the New Economy, pages 153-204 National Bureau of Economic Research, Inc. [Downloadable!]
  8. William E. Even & David A. Macpherson, 2004. "Determinants and Effects of Employer Matching Contributions in 401(k) Plans," Labor and Demography 0405001, EconWPA. [Downloadable!]
  9. Richard D. Miller, Jr., 2004. "Estimating the Compensating Differential for Employer-Provided Health Insurance," International Journal of Health Care Finance and Economics, Springer, vol. 4(1), pages 27-41, 03. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tuuli Juurikkala & Olga Lazareva, 2006. "Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms," Working Papers w0062, Center for Economic and Financial Research (CEFIR). [Downloadable!]
    Other versions:
  2. Park, Timothy A., 2008. "Evaluating Labor Productivity in Food Retailing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October. [Downloadable!]
    Other versions:
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