The hidden payroll: Employee benefits and the structure of workplace inequality

Abstract

Employee benefits contribute to the stratification of the labor force into occupational markets. Employee benefits and earnings form “compensation packages” available in different combinations and at different levels to occupations located in different labor markets. In this study I have merged and aggregated data from the Current Population Survey Pension Suppolement in 1979 at the detailed occupation level with data from the Fourth Edition of the Dictionary of Occupational Titles to examine the relative importance of workforce characteristics, occupational content, and labor market context in the provision of selected employee benefits both separately and in combinations with earnings. The analyses reveal that fringe benefits are structurally-determined factors that represent a dimension of the reward structure of occupations different from earnings, but they combine with earnings to stratify the workplace into occupational markets.