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Possible disadvantages of pay transparency

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  1. Currently, fringe benefits make up about 30% of U.S. workers' total compensation. Suppose the U.S. government decides to tax fringe benefits as ordinary income. How might this affect the level of fringe benefits as a share of total compensation? Explain.
  2. Describe trends in CEO pay (in the United States) over the past 30 years. What factors contributed to the observed trends?
  3. Use the concept of compensating wage differentials to explain why college professors might earn lower salaries than similarly educated individuals (that is, others with PhDs) who are employed in private corporations.
  4. Describe two possible advantages and two possible disadvantages of pay transparency.

Reference no: EM132148940

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