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Nonwage Benefits

Nonwage benefits (also called fringe benefits or simply benefits) represent compensation in addition to salary or wages, such as health insurance, paid leave, and retirement benefits. In the public education sector, nonwage benefits generally represent a considerable share of the total compensation of public education employees (e.g., teachers). More than one fourth of expenditures tied to instruction go toward nonwage benefits. Moreover, benefits such as summer leave and traditional retirement packages play a prominent role in shaping the debate around policies in education finance. This entry begins with a discussion of major categories of benefits. It then outlines prominent trends and tensions with respect to these categories in the sphere of education.

Categorization of Nonwage Benefits

There are two primary approaches to categorizing nonwage benefits: first by ...

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