Mandated benefits and entry-level employees and employment

Entry-level employees, particularly those with little education and skill, are often not provided fringe benefits that are included in the compensation packages of their more skilled and experienced counterparts. Under the rubric of improving the well-being of entry-level employees, Congress is considering proposals requiring employers provide speccific benefits to employees. Unfortunately, by substituting political directives for market decision making, mandated benefits impose economic inefficiencies, and most of the resulting costs are borne by the entry-level employees purportedly most helped by mandated benefits. The author thanks Ronald Warren for helpful comments. The customary caveat applies.