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Fringe Benefits and Inequality in the Labor Market

  • Wankyo Chung
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    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.

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    File URL: http://hdl.handle.net/10.1093/ei/cbg025
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    Article provided by Western Economic Association International in its journal Economic Inquiry.

    Volume (Year): 41 (2003)
    Issue (Month): 3 (July)
    Pages: 517-529

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    Handle: RePEc:oup:ecinqu:v:41:y:2003:i:3:p:517-529
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