The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Mandated Employer Provision of Employee Benefits

  • Jonathan Gruber
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2814

Abstract

Mandated employer provision of social benefits is of rising importance in the United States. As highlighted by Summers (1989), the efficiency losses from such mandates may be much lower than those of taxation due to tax–benefit linkages. I review the theory underlying this observation and the empirical evidence which documents full shifting to wages (and therefore little efficiency cost) of mandated benefits. A host of important questions about mechanisms remains unanswered, however.

Keywords

Adverse selection Anti-discrimination law Cost shifting Health insurance Labour supply Mandating employer provision of employee benefits Minimum wages Payroll taxation Unemployment insurance Workers’ compensation insurance 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jonathan Gruber
    • 1
  1. 1.