Teaching Tools: Why Workers Should Want Mandated Benefits to Lower Their Wages

Dwight R Lee

Economic Inquiry, 1996, vol. 34, issue 2, 401-07

Abstract: Mandating that employers provide job-related benefits is not a free lunch for employees. Despite the claims of some advocates of mandated benefits, economists have long recognized that much of the cost of those benefits is passed on to employees in lower wages. What has gone unrecognized is that the more employees pay for a mandated benefit relative to its cost the more they gain from having the benefit provided. Copyright 1996 by Oxford University Press.

Date: 1996
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