Anne Beeson Royalty Stanford University SBR-9631426 This research will look at several aspects of the impact of nonwage benefits. Nonwage benefits account for approximately one-third of total compensation. The first part of the project will investigate the effect on measured inequality of including employer contributions to health insurance in measures of earnings, as well as the effect on measured inequality of the nondiscrimination provision of the tax code. The second part of the project will explore the effect of preferential tax treatment for fringe benefits on the composition of compensation. The last part of the project will investigate the trade-offs workers make between wages and fringes when choosing fringe benefit options.
