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The Provision of Company Benefits in the UK

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  • David Collard
  • Michael Godwin
  • John Hudson

Abstract

A theoretical analysis argues that a company will provide benefits if they are worth more to the employee than income equal to the net amount it is costing the firm to provide the benefit. Because the individual is being denied choice, other things being equal he/she would prefer the income. But the firm may be able to provide a benefit‐wage package which compensates the individual because of (i) tax advantages, (ii) economies of scale in purchasing or (iii) production function advantages. The empirical work focuses on benefit provision in the UK.

Suggested Citation

  • David Collard & Michael Godwin & John Hudson, 2005. "The Provision of Company Benefits in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7‐8), pages 1397-1421, September.
    • Handle: RePEc:bla:jbfnac:v:32:y:2005:i:7-8:p:1397-1421
    DOI: 10.1111/j.0306-686X.2005.00633.x
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    References listed on IDEAS

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    1. Dye, Ronald A & Antle, Rick, 1984. "Self-Selection via Fringe Benefits," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 388-411, July.
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    4. Jayachandran N. Variyam & David S. Kraybill, 1998. "Fringe Benefits Provision by Rural Small Businesses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 360-368.
    5. Green, Francis & Felstead, Alan & Burchell, Brendan, 2000. "Job Insecurity and the Difficulty of Regaining Employment: An Empirical Study of Unemployment Expectations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 855-883, Special I.
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    8. Vella, Francis, 1993. "Nonwage Benefits in a Simultaneous Model of Wages and Hours: Labor Supply Functions of Young Females," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 704-723, October.
    9. Royalty, Anne Beeson, 2000. "Tax preferences for fringe benefits and workers' eligibility for employer health insurance," Journal of Public Economics, Elsevier, vol. 75(2), pages 209-227, February.
    10. David Bernstein, 2002. "Fringe benefits and small businesses: evidence from the federal reserve board small business survey," Applied Economics, Taylor & Francis Journals, vol. 34(16), pages 2063-2067.
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    Cited by:

    1. Callum Butler & Paul Calcott, 2018. "Optimal fringe benefit taxes: the implications of business use," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(3), pages 654-672, June.
    2. Kristjan-Olari Leping, 2007. "Racial Differences In Availability Of Fringe Benefits As An Explanation For The Unexplained Blackwhite Wage Gap For Males In Us," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 57, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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