Wages & Benefits

Introduction

In the United States, wages and benefits are determined by supply and demand factors within a context of legal restrictions and government regulations. Laws and regulations attempt to reduce wage inequality, maintain workplace standards, and eliminate discrimination against racial minorities, women, older workers, and workers with disabilities. Compensation can take many forms in addition to wages and salaries, and these different forms of compensation have implications for labor supply and employer costs. Understanding the costs and benefits of wage and benefit regulation is an important goal of economic analysis and research.

Issues

How have the tax system and federal and states regulations influenced compensation and employer costs?
What are the effects of minimum wage laws and living wage ordinances on the labor market?
What are the causes of increasing wage inequality, and how can it be reversed?