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Which of the following best explains why total compensation for U.S. workers has increased significantly over...

Which of the following best explains why total compensation for U.S. workers has increased significantly over the past several decades, but take-home pay by U.S. workers has increased by much less?

a) An increased share of total compensation has gone to provide health insurance to workers.

b) The share of total compensation going to retirement accounts has increased relative to all other components of compensation.

c) Total compensation is measured in current dollar terms; take-home pay is measured in inflation-adjusted dollars.

d) Workers are receiving a much larger share of total compensation in the form of goods and services produced by the firms that employ them.

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Answer #1

The correct option is a) An increased share of total compensation has gone to provide health insurance to workers.

Due to an increased share of total compensation has gone to provide health insurance to workers total compensation for U.S. workers has increased significantly over the past several decades, but take-home pay by U.S. workers has increased by much less.

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