The Role of Fringe Benefits in Operator Off‐Farm Labor Supply

Abstract

The last thirty years have seen a major shift in the share of total compensation paid to workers in the form of nonwage fringe benefits, that is, payments in a form other than currently spendable cash (Chen). Fringe benefits have become increasingly important because they are a source of income that receives preferential tax treatment, and can often be offered at group savings, as in the case of purchase oflife and health insurance.