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December 1989

Employer-provided benefits: employer cost versus employee value

Melissa Famulari, Marilyn E. Manser

Cash-equivalent value is one approach to measuring employees' value of noncash benefits. More data and research are needed, however, to resolve complex methodological issues regarding this approach. This article outlines the cash-equivalent value approach to measuring value, describes the three most commonly utilized techniques to estimate cash-equivalent value, and discusses studies where biases do not appear to distort conclusions and studies where use of employer cost as a measure of employee value result in highly misleading conclusions.

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