Accounting for wages and benefits using the ECI.

This article deals with the findings of a study regarding the use of Employer Cost Index (ECI) to correlate the relationship between benefits and wages in the U.S. Accounting for employee benefits as a form of real compensation for work has received much theoretical and empirical attention. The hedo...

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Publicado en:Monthly Labor Review Vol. 127; no. 9; pp. 26 - 48
Autores principales: Schwabish, Jonathan A., Perrins, Gerald
Formato: Artículo
Publicado: US Department of Labor Sep2004
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Accounting for wages and benefits using the ECI.
      aug:
        au:
          Schwabish, Jonathan A.
          Perrins, Gerald
        affil:
          Senior director, Research and Policy, Partnership for New York City
          Regional economist, Philadelphia Regional Office, Bureau of Labor Statistics, Philadelphia, Pennsylvania
      su:
        United States
        Employee benefits
        Wages
        Wage differentials
        Employers
      sug:
        subj:
          Employee benefits
          Wages
          Wage differentials
          United States
          Health and Welfare Funds
          Other Insurance Funds
          Employers
      ab: This article deals with the findings of a study regarding the use of Employer Cost Index (ECI) to correlate the relationship between benefits and wages in the U.S. Accounting for employee benefits as a form of real compensation for work has received much theoretical and empirical attention. The hedonic theory of compensating wage differentials contends that workers make tradeoffs between wages and benefits. That is, in lieu of lower wages, workers are compensated by taking the greater benefits offered by employers. Empirical approaches to estimating the tradeoff however, have generally failed to correspond with theory. The value of employee benefits is of increasing importance to researchers and policymakers alike. A Study from the Employee Benefits Research Institute reports that employee benefits became an even greater proportion of total compensation, rising from 26.8 percent to 28.9 percent between 1987 and 1994. Employee benefit cost data, along with wage and salary data, come from the survey used by the U.S. Bureau of Labor Statistics to generate the quarterly price index for employer costs, known as the ECI. Several aspects of the ECI made the calculations of average benefit costs especially troublesome.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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