It's highly debatable and jurisdiction dependant.
Plenty of contractors are basically employees paying less taxes and not having holidays.
(not that I'm complaining, I'm glad there is a legal way to minimise how much the government steals from me)
States are a bit trickier because healthcare is so ridiculously overpriced and therefore people value health insurance provided by an employer.
I never even bothered to sign up for the private health insurance I had in the UK and just either user the crappy public one or paid out of pocket, finding the best doctor for the job (instead of what my insurance would have offered).