Analysis of Fringe Benefits for Nonmetropolitan versus Metropolitan Employee Compensation

Abstract

There has been little empirical research on nonagricultural labor markets and compensation practices of firms located in nonmetropolitan areas. To a large extent research on nonmetropolitan areas has focused on farm and hired labor market in rural areas (Bryant, Bawden, Saupe). In part lack of empirical research reflects historical importance of agricultural sector, and in part it reflects relatively recent expansion of nonfarm employment in nonmetropolitan areas. A notable exception was 1973 study of rural industrial development and labor markets conducted by Center for Study of Human Resources of University of Texas (Marshall, Till). Increasingly, even farm families are depending on employment in nonfarm sector (Jordan and Hady). Despite industrialization, nonmetropolitan wages remain below national industrial wages (Tweeten and Brinkman). Both Marshall's study and another study of four southern counties by Rungeling et al. find that employment is concentrated in relatively low-paying sectors. Both studies note that fringe benefits offered by rural employers are lower. Rungeling et al. conclude that the lack of fringe benefits is due no doubt to almost total absence