The Root of the Problem
The problem of ageism in the labor market stems from the connection of employment and health insurance. Most of the full-time employment in the United States includes health insurance as part of the benefit package given to employees. Why is this the case? This is the case because there is a lower tax burden on employers and employees if part of the normal salary is given in the form of health insurance instead of cash. This is a problem because as people age their risk for health problems increase, which in turn cause the cost to employers to increase, which provides an incentive for employers to discriminate against old or those with poor health.
Solution #1
Simply end the tax benefit that is given to health insurance. This would lead to the current wages paid in terms of health care to instead be paid in terms on money.
Solution #2
Legalize discrimination. How could this help the situation? This could help the situation by enabling employers to either reduce the pay of those in ill health, or an employer could simply state a policy of giving increased wages to the old instead of health insurance. Currently either of the two forms of discrimination I have described is so obviously illegal that they would never occur under current laws. This leads employers to hurt the old and ill even more by firing them completely, something that is easier to explain away on other grounds.
The problem of ageism in the labor market stems from the connection of employment and health insurance. Most of the full-time employment in the United States includes health insurance as part of the benefit package given to employees. Why is this the case? This is the case because there is a lower tax burden on employers and employees if part of the normal salary is given in the form of health insurance instead of cash. This is a problem because as people age their risk for health problems increase, which in turn cause the cost to employers to increase, which provides an incentive for employers to discriminate against old or those with poor health.
Solution #1
Simply end the tax benefit that is given to health insurance. This would lead to the current wages paid in terms of health care to instead be paid in terms on money.
Solution #2
Legalize discrimination. How could this help the situation? This could help the situation by enabling employers to either reduce the pay of those in ill health, or an employer could simply state a policy of giving increased wages to the old instead of health insurance. Currently either of the two forms of discrimination I have described is so obviously illegal that they would never occur under current laws. This leads employers to hurt the old and ill even more by firing them completely, something that is easier to explain away on other grounds.
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