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> Even if companies wanted to do the right thing and keep the overall pay constant It has nothing to do with what companies want. They don't pay an employee $
by seanflyon 11y ago
> Even if companies wanted to do the right thing and keep the overall pay constant
It has nothing to do with what companies want. They don't pay an employee $X because they like to get rid of money, they pay $X because if they offered less that employee would go elsewhere and they would have to settle for a less productive employee, or none at all.
- danieltillett 11y agoActually it is a bit more complex than this. There is a lot of stickiness in wages, but ultimately all wages are set at the margin. Assuming an efficient market then any change from tax efficient benefits to straight salary will result in an effective cut to the employee.