How do fringe benefits influence the wage elasticity of labor supply in economic terms?

Fringe benefits, like health insurance or retirement plans, can significantly influence the wage elasticity of labor supply, which measures how responsive workers are to changes in wages. When employers offer attractive fringe benefits, workers may be less sensitive to wage changes because they value these benefits highly. For example, if a company offers a good health plan, employees might be willing to accept a lower salary because the benefits provide important security and savings. This means that the labor supply becomes less elastic, as workers prioritize the overall compensation package rather than just the wage. In contrast, if fringe benefits are minimal, workers might demand higher wages to compensate, making the labor supply more elastic.