You’re choosing between two job offers. Both are with respectedorganizations and desirable work. The first offer is with a large,well-established firm at $22,000 per year in salary plusnoncontributory benefits worth $7,000 per year. The other job is asmall business with salary of $30,000 per year without employervoluntary benefits (the employer is required to pay for socialinsurance programs).
a. What factors should be considered in determining the betteroffer? Which package do you think maximizes total compensation?
b. Which employer is economically better off (all else beingequal), the one offering salary plus benefits or the one offeringsalary only? Explain your answer.
