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Labor in the New Economy$
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Katharine G. Abraham, James R. Spletzer, and Michael Harper Harper

Print publication date: 2010

Print ISBN-13: 9780226001432

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226001463.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 19 September 2021

Recent Trends in Compensation Inequality

Recent Trends in Compensation Inequality

(p.63) 2 Recent Trends in Compensation Inequality
Labor in the New Economy

Brooks Pierce

University of Chicago Press

This chapter focuses on the changing trends in inequality of compensation. It documents the changing compensation costs of labor and changing compensation inequality, using employer survey microdata on wages and benefit costs. The chapter presents facts on the level and distribution of fringe benefits, on the relationship between wages and fringe benefits, and on how these relationships have changed over the past two decades. It states that health insurance premium increases acted to raise measured compensation more for workers in jobs in the broad middle of the wage distribution. There is further evidence that other employer-provided benefits' costs increased most in those portions of the wage distribution experiencing the greatest wage growth. In total, inequality in compensation more broadly defined increased at least as much as wage inequality. The chapter further mentions that work-related safety risk improvement was broad-based and not concentrated in particular occupations over this period.

Keywords:   compensation inequality, labor costs, fringe benefits, health insurance, wage inequality

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