Workers are compensated by firms with benefits in addition

Reference no: EM13377136

Workers are compensated by firms with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $30 per hour and in addition received health benefits at the rate of $6 per hour. Also suppose that by 2010 workers at that plant were paid $31.5 per hour but received $13.5 in health insurance benefits.

a. By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010?

Instructions: Round your answer to two decimal places.

Total compensation by %.

What was the approximate average annual percentage change in total compensation?

Instructions: Round your answer to two decimal places.

Approximately % per year

b. By what percentage did wages change at this plant from 2000 to 2010?

Instructions: Enter only whole numbers for your answer.

Wages by %.

What was the approximate average annual percentage change in wages?

Instructions: Round your answer to one decimal place.

% per year

c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period?

Instructions: Round your answer to two decimal places.

What if they only consider wages when calculating their incomes?

They will feel that their incomes went by %.

d. Is it possible for workers to feel as though their wages are stagnating even if total compensation is rising?
Economics

Reference no: EM13377136

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