Using cross-sectional data for blue and white collar workers for U.S. cities, we examine how the tax treatment of fringe benefits affects whether employers offer benefits. Differences in state-level income taxes cause variation across places in the tax incentives for fringe benefits. We find...

In this paper, I estimate the effect of the tax preference for employer-provided health insurance on the probability that an employee will be eligible for health insurance at work. I instrument for marginal tax rates with state-level state income tax rates and I control for unobservable state...

Using cross-sectional data for blue and white collar workers for U.S. cities, we examine how the tax treatment of fringe benefits affects whether employers offer benefits. Differences in state-level income taxes cause variation across places in the tax incentives for fringe benefits. We find...