Search results

Employer-provided benefits are a large and growing share of compensation costs. In this paper, I consider three factors that can affect the value created by employer-sponsored benefits. First, firms have a comparative advantage (e.g., due to scale economies or tax treatment) in purchasing relative to employees. This advantage can vary across firms based on size and other differences in cost structure. Second, employees differ in their valuations of benefits and it is costly for workers to match with firms that offer the benefits they value. Finally, some benefits can reduce the marginal cost to an employee of extra working time. I develop a simple model that integrates these factors. I then generate empirical implications of the model and use data from the National Longitudinal Survey of Youth to test these implications. I examine access to employer-provided meals, child care, dental insurance, and health insurance. I also study how benefits are grouped together and differences between benefits packages at for-profit, not-for-profit, and government employers. The empirical analysis provides evidence consistent with all three factors in the model contributing to firms’ decisions about which benefits to offer.

In the spirit of Polachek (1975) and the later work of Becker (1985) on the role of specialization within the family, we examine the relationship between fringe benefits and the division of labor within a married household. The provision of fringe benefits is complicated by their non-additive nature within the household, as well as IRS regulations that stipulate that they be offered in a non-discriminatory manner in order to maintain their tax-exempt status. We model family decisions within a framework in which one spouse specializes in childcare and as a result experiences a reduction in market productive capacity. Our model predicts that the forces toward specialization become stronger as the number of children increase, so that the spouse specializing in childcare will have some combination of lower wages, hours worked, and fringe benefits. We demonstrate that to the extent that labor markets are incomplete, the family is less likely to obtain health insurance from the employer of the spouse that specializes in childcare. Using data from the April 1993 CPS we find evidence consistent with our model.

The purpose of this paper is to investigate the impact of employer-provided health benefits (EPHBs) on labor supply decisions of documented and undocumented farm workers. By establishing a significant linkage between EPHB and farm work decisions, this study provides important implications for farm employment retention and the financial sustainability of farm businesses.

Using data from the National Agricultural Workers Survey, objective (actual) and subjective (expected) employment data are used as outcome variables analyzed under an ordered probit model, with the data pre-processed using the coarsened exact matching method to reduce endogeneity issues within the estimation.

Results confirm the influence of EPHB on farm workers’ decisions to remain employed on the farm as well as on the duration of their farm employment. Comparatively, EPHB significantly influences undocumented farm workers’ decisions on actual employment duration and subjective working expectations while documented workers seem to ascribe less importance to EPHB in their farm employment decisions.

This study provides important financial and business viability implications as the value of farm labor services retained through EPHB can translate to high opportunity losses, if ineffective. Alternative labor-saving strategies, such as mechanization, can only potentially lead to serious financial challenges for agribusiness firms, especially small-scale farm operations. This study emphasizes the need for more effective employment retention incentives for the sake of sustaining farm business viability.

This study presents empirical evidence on the important influence of EPHB on farm employment decisions, especially those made by undocumented farm workers, that have not been extensively explored in literature.

Farm labor contractors operate as intermediaries between farmworkers and agricultural employers by recruiting and supplying labor to US farms. In a political economy where there are employer sanctions for hiring workers without proper documentation, contractors share risk alongside final employers. Furthermore, contractors may facilitate quick employment matches during time sensitive agricultural tasks such as harvesting. For undocumented workers, using a contractor may decrease uncertainty associated with a foreign labor market and ease language barriers. The purpose of this paper is to examine the current role of labor contractors in delivering immigrant agricultural workers, particularly undocumented workers, to farms.

Determinants of labor contractor use and relationships to final worker outcomes are examined using econometric methods and a large nationally‐representative worker survey that is distinctive in that it distinguishes legal status.

Undocumented farmworkers are shown to be more likely to use contractors than are documented workers, though statistical significance is sensitive to the inclusion of crop and task indicators, and wages and fringe compensation to workers who use contractors are lower, even after controlling for legal status.

The paper contributes to limited recent academic work on the role of labor contractors in US agriculture. Future work may examine ongoing changes to this role in the context of mutable immigration policy and public opinion.

It is argued that the decline in labor contracting increases the need for employer‐level bilingual communication skills and compliance with labor regulations.

Understanding current dynamics of the agricultural labor market should be of value to scholars of rural economies, farm owners and agricultural policymakers.

We estimate the effects of job insecurity on the mental health of older workers in the United States. To address endogeneity problems, we exploit panel data and plausibly exogenous changes in job loss expectations following eliminations of similar positions and other types of jobs at the worker’s employer, as well as changes in employment at the industry–state level. We provide evidence that job insecurity, as measured by the self-reported probability of job loss, increases stress at work and the risk of clinical depression. We also find that the use of instrumental variables increases the size of the estimated effects. We interpret this as evidence that job insecurity which is outside the control of workers may have much larger effects on mental health. Our findings suggest that employers should worry about the mental health of workers in periods of downsizing, periods which are crucial for the recovery of firms in financial difficulties and which may depend particularly on the productivity of its workers.

I use data from employers and longitudinal data from former/current recipients covering the period 1997 to early 2004 to analyze the relationship between job skills, job changes, and the evolution of wages. I analyze the effects of job skill requirements on starting wages, on-the-job training opportunities, wage growth prospects, and job turnover. The results show that jobs of different skill requirements differ in their prospects for earnings growth, independent of the workers who fill these jobs. Furthermore, these differences in wage growth opportunities across jobs are important determinants of workers’ quit propensities (explicitly controlling for unobserved worker heterogeneity). The determinants and consequences of job dynamics are investigated. The results using a multiplicity of methods, including the estimation of a multinomial endogenous switching model of wage growth, show that job changes, continuity of work involvement, and the use of cognitive skills are all critical components of the content of work experience that leads to upward mobility. The results underscore the sensitivity of recipients’ job transition patterns to changes in labor market demand conditions.

GASB Statement No. 45 addresses how governmental units account for employees' other post-employment benefits (OPEB), requiring government employers to replace OPEB reporting on a pay-as-you-go basis with an accounting of the cost of current and future benefits. This requirement and the resulting OPEB liability may prompt government employers to reconsider key questions regarding their OPEB provision. The size of the OPEB liability depends on both the benefit promises made to employees and the assets to fund these promises. We propose a typology that defines four approaches for governments to respond to GASB 45 and their OPEB liabilities. These approaches represent different combinations of strategies involving OPEB promises and assets. We illustrate these strategies and responses using selected counties and nine mid-Atlantic cities.

This study evaluates whether sociodemographic characteristics, political affiliation, family-related circumstances, self-reported health status, and access to health insurance affect public opinion toward the current US health-care system. Opinions about the health-care system were measured in terms of consumer confidence and perceived need for health-care reform. Data come from the 2008 Cooperative Congressional Election Study (CCES), a nationwide survey of 1,000 respondents. All data were collected in November 2008, thus providing a useful alternative to volatile polling data because they were collected prior to and are thus immune to the polarized tone of the debates that have occurred over the past few years. Overall, we found that public confidence in medical technology and quality of care were consistently high, while confidence in the affordability of medical care was much lower among respondents. Younger adults, those with poor health, and those without health insurance had particularly low confidence in their ability to pay for health care. Although a strong majority of the population agreed that the US health-care system was in need of major reform, support for particular types of government-sponsored health insurance programs was primarily determined by political affiliation. In an era where a large proportion of the population has little access to health care (due to lack of insurance) and where the US government is facing tremendous opposition to the implementation of major reform efforts, it is useful to understand which subgroups of the population are most confident in the current health-care system and most likely to support reform efforts, as well as those who are most resistant to change given their precarious health needs, their inability to access health care (as a result of insurance or noninsurance), or their political affiliation.

This paper aims to investigate whether firms strategically use retirement plans to retain employees with core competencies and whether offering these retirement plans provides competitive advantages that lead to greater profitability.

The data set consists of annual financial data reported to the US Department of Transportation by long haul truckload carriers. The paper uses linear regression analysis to test the hypotheses. Descriptive statistics, univariate comparisons and robustness tests are also reported.

The findings support the assertion that offering a retirement plan is positively related to the attraction and retention of skilled workers and that firms that offer retirement plans are more profitable.

Data limitations preclude proving a definitive causal relationship. With the increasing availability of rich and timely data sets at both the firm and employee levels, future research may enhance the understanding of the role that pensions play in both labor and firm productivity.

This study provides evidence that retirement plans may serve as a strategic tool in highly competitive industries characterized by high labor turnover. This study shows that by analyzing the degree of cost stickiness in income statement line-items, it is possible to bypass the need for more granular analyses to uncover meaningful economic relationships. Finally, this study contributes to the literature examining the implications of operating decisions for financial performance (a balanced scorecard perspective), and it shows that offering pension benefits is related to stronger financial performance.