Employees – along with potential employees – tend to view benefits that are mandated by regulation differently from benefits that are discretionary, that is, those that are not mandated but are simply designed to make a compensation package more attractive.
3260 Issued in February 1990 NBER Program(s): Labor Studies This paper identifies and, where possible, quantifies potential labor market consequences of government mandating of employee benefits.Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling.They may also be given first chance at job promotions when vacancies exist."The Effects of Mandating Benefits Packages." Re-search in Labor Economics, edited by L. Conducted in cooperation with London-based Llewellyn Consulting, the report, “Which Countries in Europe Offer Fairest Paid Leave and Unemployment Benefits?