The data you will focus on is for Wages and Salaries(row 8), Paid Leave (row 10), Life Insurance (row 20), Health Insurance (row21), Short-term andLong-term Disability Insurance (rows 22 and 23, respectively), and Retirement and Savings (row24). These numbers represent the cost per hour worked to the employer for providing workerswith particular benefits and are for the third quarter of 2022. For example, the averageemployer’s cost per hour worked for base wages and salaries equals $28.88 in the third quarter of2022. It costs employers $3.10 per hour to provide workers with paid leave, etc.Questions:1. What is the total compensation per hour employers provide to their workers? For this,add up all of the components selected as instructed in the previous paragraph. Do not usethe total provided in row 7 of the spreadsheet.2. Using your answer to question 1, what is the percentage of the total that comes fromwages, and what percentage comes from total non-wage benefits?3. Using your answer to question 1, what is each benefit’s percentage of totalcompensation? Do these numbers surprise you? Explain why or why not. 4. Would you prefer that the government provide these benefits by instituting a payroll taxon firms and using the tax revenue for the benefits’ provision? Explain why or why not.5. Draw a graph of the national labor market before employers provide these benefits toworkers. Add to this graph the changes in supply and demand that would be necessaryfor this market to experience no inefficiencies. Make sure to label everything using exactnumbers when appropriate.6. Major portions of the Patient Protection and Affordable Care Act became effective in2014. Specifically, the Law required employers that meet particular employmentthresholds to provide health insurance to their employees. Explain how you think thislaw affected the total compensation numbers calculated in questions 1, 2, and 3. |||||Table 1. Employer Costs for Employee Compensation by ownership2 (Sept. 2022]1011121317181920Personal15Supplemental pay16 Overtime and premiumShift differentialsNonproduction bonusesInsuranceLifeHealthShort-term disabilityLong-term disabilityRetirement and savingsDefined benefit2122Total compensationWages and salariesTotal benefitsPaid leave2425VacationHolidaySickCompensation componentCivilian workersCost (5)41.8628.8812.983.101.520.920.490.181.300.360.070.873.460.053.280.080.052.131.27Percent ofcompensation100.069.031.07.43.62.21.20.43.10.80.22.18.30.17.80.20.15.13.0Private industryworkersCost (5)39.6127.9311.682.941.510.880.400.161.410.370.070.963.000.042.830.080.051.350.44Percent ofcompensation100.070.529.57.43.82.21.00.43.60.90.22.47.60.17.10.20.13.4State and localgovernment workersCost (5)57.0235.2921.734.201.591.201.080.340.570.250.050.266.520.086.350.030.057.346.85Percent ofcompensation100.061.938.17.42.82.11.90.61.00.40.10.511.40.111.10.10.112.912.0 2728293031 Federal unemployment insurance32State unemployment insurance33 Workers' compensation344445*28585&S464748Defined contributionLegally Required benefitsSocial Security and MedicareSocial SecurityMedicare4950510.862.992.361.880.480.020.140.482.07.25.64.51.10.10.31.10.912.982.350.470.030.140.462.3ERREECCE35 Footnotes:36 (1) Includes workers in the private nonfarm economy except those in private households, and workers in the public sector, except the federal government.37 (2) Includes costs for wages and salaries and benefits.38 (3) Includes premium pay for work (such as overtime, weekends, and holidays) in addition to the regular work schedule.39 (4) Social Security refers to the Old-Age, Survivors, and Disability Insurance (OASDI) program40 (5) Cost per hour worked is $0.01 or less.41 (6) Less than .05 percent.7.55.94.81.20.10.41.20.503.102.431.850.580.070.600.95.44.33.21.00.11.0

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The data you will focus on is for Wages and Salaries (row 8), Paid Leave (row 10), Life Insurance (row 20), Health Insurance (row21), Short-term and Long-term Disability Insurance (rows 22 and 23, respectively), and Retirement and Savings (row 24). These numbers represent the cost per hour worked to the employer for providing workers with particular benefits and are for the third quarter of 2022. For example, the average employer’s cost per hour worked for base wages and salaries equals $28.88 in the third quarter of 2022. It costs employers $3.10 per hour to provide workers with paid leave, etc. Questions: 1. What is the total compensation per hour employers provide to their workers? For this, add up all of the components selected as instructed in the previous paragraph. Do not use the total provided in row 7 of the spreadsheet. 2. Using your answer to question 1, what is the percentage of the total that comes from wages, and what percentage comes from total non-wage benefits? 3. Using your answer to question 1, what is each benefit’s percentage of total compensation? Do these numbers surprise you? Explain why or why not. 4. Would you prefer that the government provide these benefits by instituting a payroll tax on firms and using the tax revenue for the benefits’ provision? Explain why or why not. 5. Draw a graph of the national labor market before employers provide t

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

The data you will focus on is for Wages and Salaries
(row 8), Paid Leave (row 10), Life Insurance (row 20), Health Insurance (row21), Short-term and
Long-term Disability Insurance (rows 22 and 23, respectively), and Retirement and Savings (row
24). These numbers represent the cost per hour worked to the employer for providing workers
with particular benefits and are for the third quarter of 2022. For example, the average
employer’s cost per hour worked for base wages and salaries equals $28.88 in the third quarter of
2022. It costs employers $3.10 per hour to provide workers with paid leave, etc.
Questions:
1. What is the total compensation per hour employers provide to their workers? For this,
add up all of the components selected as instructed in the previous paragraph. Do not use
the total provided in row 7 of the spreadsheet.
2. Using your answer to question 1, what is the percentage of the total that comes from
wages, and what percentage comes from total non-wage benefits?
3. Using your answer to question 1, what is each benefit’s percentage of total
compensation? Do these numbers surprise you? Explain why or why not.

4. Would you prefer that the government provide these benefits by instituting a payroll tax
on firms and using the tax revenue for the benefits’ provision? Explain why or why not.
5. Draw a graph of the national labor market before employers provide these benefits to
workers. Add to this graph the changes in supply and demand that would be necessary
for this market to experience no inefficiencies. Make sure to label everything using exact
numbers when appropriate.
6. Major portions of the Patient Protection and Affordable Care Act became effective in
2014. Specifically, the Law required employers that meet particular employment
thresholds to provide health insurance to their employees. Explain how you think this
law affected the total compensation numbers calculated in questions 1, 2, and 3.

|||||
Table 1. Employer Costs for Employee Compensation by ownership
2 (Sept. 2022]
10
11
12
13
17
18
19
20
Personal
15
Supplemental pay
16 Overtime and premium
Shift differentials
Nonproduction bonuses
Insurance
Life
Health
Short-term disability
Long-term disability
Retirement and savings
Defined benefit
21
22
Total compensation
Wages and salaries
Total benefits
Paid leave
24
25
Vacation
Holiday
Sick
Compensation component
Civilian workers
Cost (5)
41.86
28.88
12.98
3.10
1.52
0.92
0.49
0.18
1.30
0.36
0.07
0.87
3.46
0.05
3.28
0.08
0.05
2.13
1.27
Percent of
compensation
100.0
69.0
31.0
7.4
3.6
2.2
1.2
0.4
3.1
0.8
0.2
2.1
8.3
0.1
7.8
0.2
0.1
5.1
3.0
Private industry
workers
Cost (5)
39.61
27.93
11.68
2.94
1.51
0.88
0.40
0.16
1.41
0.37
0.07
0.96
3.00
0.04
2.83
0.08
0.05
1.35
0.44
Percent of
compensation
100.0
70.5
29.5
7.4
3.8
2.2
1.0
0.4
3.6
0.9
0.2
2.4
7.6
0.1
7.1
0.2
0.1
3.4
State and local
government workers
Cost (5)
57.02
35.29
21.73
4.20
1.59
1.20
1.08
0.34
0.57
0.25
0.05
0.26
6.52
0.08
6.35
0.03
0.05
7.34
6.85
Percent of
compensation
100.0
61.9
38.1
7.4
2.8
2.1
1.9
0.6
1.0
0.4
0.1
0.5
11.4
0.1
11.1
0.1
0.1
12.9
12.0

27
28
29
30
31 Federal unemployment insurance
32
State unemployment insurance
33 Workers' compensation
34
44
45
*28585&S
46
47
48
Defined contribution
Legally Required benefits
Social Security and Medicare
Social Security
Medicare
49
50
51
0.86
2.99
2.36
1.88
0.48
0.02
0.14
0.48
2.0
7.2
5.6
4.5
1.1
0.1
0.3
1.1
0.91
2.98
2.35
0.47
0.03
0.14
0.46
2.3
ERREECCE
35 Footnotes:
36 (1) Includes workers in the private nonfarm economy except those in private households, and workers in the public sector, except the federal government.
37 (2) Includes costs for wages and salaries and benefits.
38 (3) Includes premium pay for work (such as overtime, weekends, and holidays) in addition to the regular work schedule.
39 (4) Social Security refers to the Old-Age, Survivors, and Disability Insurance (OASDI) program
40 (5) Cost per hour worked is $0.01 or less.
41 (6) Less than .05 percent.
7.5
5.9
4.8
1.2
0.1
0.4
1.2
0.50
3.10
2.43
1.85
0.58
0.07
0.60
0.9
5.4
4.3
3.2
1.0
0.1
1.0

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