Gender,risk and access to tax-favored fringe benefits: A split labor market approach

This paper examines sex differences in access to tax-favored pension plans and group insurance. Since women cost more to insure than men, a split labor market is created. The hypothesis tested here is whether or not gender differences in fringe benefit costs are substantial enough to affect employers' decisions to provide them. If so, this would help explain the relative undercoverage of women. Multiple regression analysis of data from the 1977 Quality of Employment Survey is used to examine this. The results show little evidence of direct sex discrimination by employers. However, lower-status, female-dominated occupations are less likely to be insured. Policy implications are discussed.