Effects of the Tax Treatment of Fringe Benefits on Labor Market Segmentation

Bibliographic Data

ID3314593
AuthorsFrank A Scott (0000-0003-3993-8058), Mark C Berger, Dan A Black
Year1989
Volume42
Issue2
Pages216-229
Publication date1989-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979398904200204
OpenAlexW2146880898
LanguageEN
Citations received2
References cited17

Current federal tax law requires that all workers having the same experience with a firm must receive essentially the same package of fringe benefits in order for those benefits to qualify for preferential tax treatment. The authors argue that this "nondiscriminatory" provision of fringe benefits promotes labor market segmentation by inducing workers to sort themselves across the economy according to their demand for fringe benefits. Several empirical tests using 1968-78 data confirm the existence of sorting and suggest that labor market segmentation increased over time as workers responded to changes in incomes and marginal tax rates

Business · Economics · Labour economics · Market segmentation · Microeconomics · Order (exchange) · Public economics · Segmentation · sort · Sorting · Artificial Intelligence · Computer Science · Corporate Taxation and Avoidance · Finance · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Labor market dynamics and wage inequality · Retirement, Disability, and Employment · Taxation and Compliance Studies

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