The Clinton Health Plan and Equity Theory: Pay‐Work Disequilibrium

Any number of explanations can be offered for the inclusion of health‐care benefits as a component of compensation. Among the more obvious and generally accepted explanations are: the cost‐effectiveness of large group purchases by the organization, the positive tax consequences for the employee; the employer′s response to labour market competition; or, even, that the inclusion of this benefit reflects the historical response of some organizations and unions to wage controls during the Second World War.