I would like to thank Finis Welch, Manuelita Ureta, Wayne Strayer, and two anonymous referees for their helpful comments. This paper is based on research that I undertook for my Ph.D. dissertation at Texas A&M University.
Fringe Benefits and Inequality in the Labor Market
Article first published online: 26 MAR 2007
Volume 41, Issue 3, pages 517–529, July 2003
How to Cite
Chung, W. (2003), Fringe Benefits and Inequality in the Labor Market. Economic Inquiry, 41: 517–529. doi: 10.1093/ei/cbg025
- Issue published online: 26 MAR 2007
- Article first published online: 26 MAR 2007
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.