1. ACCOUNTING FOR EMPLOYEE BENEFITS: Issues of Measurement, Valuation and Social Equivalencies Neil Gilbert School of Social Welfare University of California Berkeley European Measures of Income, Poverty, and Social Exclusion: Recent Developments and Lessons for U.S. Poverty Measurement (Washington D.C. Nov. 4, 2009)

2. Employee Remuneration Package: BLS Categories Hourly Compensation Costs: * Hourly Direct Pay * Hourly Direct Pay Pay for Time Worked Pay for Time Worked Basic wages Basic wages Piece rate Piece rate Overtime premiums Overtime premiums Shift differentials Shift differentials Bonuses and premiums paid regularly Bonuses and premiums paid regularly Cost-of-living adjustments Cost-of-living adjustments *Other Direct Pay *Other Direct Pay Pay for time not worked (vacations, holidays, and other leave, except sick leave) Pay for time not worked (vacations, holidays, and other leave, except sick leave) Seasonal and irregular bonuses Seasonal and irregular bonuses Social allowances Social allowances Pay in kind Pay in kind * Employer Social Insurance Expenditures (both legally required and contractual) and Other Labor Taxes * Employer Social Insurance Expenditures (both legally required and contractual) and Other Labor Taxes Retirement and disability pensions Health insurance Retirement and disability pensions Health insurance Income guarantee insurance and sick leave Income guarantee insurance and sick leave Life and accident insurance Life and accident insurance Occupational injury and illness compensation Occupational injury and illness compensation Unemployment insurance Unemployment insurance Family allowances Family allowances Other social insurance expenditures Other social insurance expenditures

3. How to Value Employee Benefits? How to Value Employee Benefits? Costs to Employer Costs to Employer Market Value Market Value Low-end Standard Value Low-end Standard Value Value to Employee Value to Employee

4. Table 2: Employee Benefits as % of hourly compensation costs for production workers in manufacturing 1975-2006 * 1975198019851990199520002006 United States 23.625.82627.228.127.129.5 Austria4647.749.749.949.448.648.5 Denmark14.916.517.716.321.426.128 Finland28.232.733.738.238.837.640.6 France4041.544.746.345.745.344.3 Germany---------- ----43.642.242.1 Netherla nds 40.942.342.642.542.640.341.8 Norway28.330.731.331.429.229.832.9 Spain48.144.643.846.247.344.145.5 Sweden3138.140.540.839.741.643.5 U. K.21.127.926.225.826.231.130.3 *Employee benefits include the employer’s costs of all compensation minus pay for time worked Source: Calculated from BLS “International Comparisons of Compensation Costs” Table 13

5. Table 3. Primary Categories of Employee Benefits 2006 Employee Benefits for Production Workers Total Other Direct Social insurance Benefits Pay and related costs United States29.5 7.6 21.9 Austria48.5 21.5 27.0 Denmark28 17.6 10.4 Finland40.6 19.6 21.0 France44.3 12.2 32.1 Germany42.1 19.1 23.0 Netherlands41.8 19.4 22.4 Norway32.9 12.9 20.0 Spain45.5 19.9 25.6 Sweden43.5 10.4 33.1 U. K.30.3 9.0 21.3

6. Toward a more comprehensive accounting Resolve conceptual and methodological issues about what to count and how to value benefits Resolve conceptual and methodological issues about what to count and how to value benefits Incorporate monetary value of untaxed employee benefits into income measures Incorporate monetary value of untaxed employee benefits into income measures Address the treatment of functionally equivalent social benefits Address the treatment of functionally equivalent social benefits What is the value of leisure time? What is the value of leisure time?