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As Janemarie Mulvey, president of the Employment Policy Foundation (EPF), notes: "The term "fringe benefits" is an anachronism.These benefits are no longer at the fringe."The real cost-driver is, of course, health care.Over the past 20 years, employer medical insurance costs have doubled relative to the average wage.If health costs are not somehow contained in the years ahead, EPF estimates that the share of total compensation consumed by health costs will double from 12% today to 25% by 2015.As a consequence of these steady gains the average hourly wage is a little over an hour, according to the Bureau of Labor Statistics.

It's a grim picture that suggests that the best days of the American worker are behind us and that The Brady Bunch lived better than Bart Simpson's family does today.Gary Robbins of the Heritage Foundation estimates that about 90% of the gains from an increase in capital investment by businesses accrue to workers in the form of higher wages, and the remaining 10% accrue to the owners of the capital.But herein lies a conundrum: Why have wages only crept up since 2000 during this era of unprecedented productivity gains?Employers are now offering a much wider range of benefits to workers than ever before: 33% of all firms now offer long-term care insurance; 42% offer telecommuting; 82% school tuition assistance; 62% flexible work schedules; 31% adoption assistance; and almost half paid military leave.For better or worse, employers have become full-service social welfare agencies.

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