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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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    References listed on IDEAS

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    1. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, July.
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    Cited by:

    1. Mok, Wallace & Siddique, Zahra, 2009. "Racial Differences in Fringe Benefits and Compensation," IZA Discussion Papers 4435, Institute for the Study of Labor (IZA).
    2. 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, vol. 65(1), pages 7-32, March.
    3. Robert Kaestner & Darren Lubotsky, 2016. "Health Insurance and Income Inequality," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 53-78, Spring.
    4. Olena Nizalova, 2014. "Inequality in Total Returns to Work in Ukraine: Taking A Closer Look at Workplace (Dis)amenities," Discussion Papers 52, Kyiv School of Economics.
    5. Helen Levy, 2006. "Health Insurance and the Wage Gap," NBER Working Papers 11975, National Bureau of Economic Research, Inc.
    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.

    More about this item

    JEL classification:

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

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