Factors affecting pension and health benefits availability in small and large business

Factors affecting the provision of fringe benefits are receiving more attention as fringe benefits have become an increasingly important component of total compensation. Despite the importance of trends in fringe benefits to businesses and the economy, the effects of factors--including firm size--on the provision of fringe benefits have received only limited systematic attention. Studies have examined either worker characteristics or firm/establishment/ industry characteristics, but few have combined both types of characteristics to study a more comprehensive set of determinants. The author addresses this limitation using new data from a nationally representative sample of almost 600 firms. The focus of this study is on the two most important fringe benefits--pension plans and health insurance.