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Do Health Insurance and Pension Costs Reduce the Job Opportunities of Older Workers?

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  • Frank A. Scott
  • Mark C. Berger
  • John E. Garen

Abstract

Using a 1991 nationwide survey of employers and 1979, 1983, 1988, and 1993 data from the Employee Benefits Supplement of the Current Population Survey, the authors examine the effects of fringe benefit provision on the decision to hire older workers. They find that higher health insurance costs, in the presence of prohibitions against age discrimination and discrimination in the provision of fringe benefits, adversely affected older workers' employment opportunities. In all five data sets over a fourteen-year period, the probability that a new hire was aged 55–64 was significantly lower in firms with health care plans than in those without, and was also significantly lower in firms with relatively costly plans than in those with less costly plans. On the other hand, neither the cost nor the presence of a defined contribution or defined benefit pension plan significantly affected that probability.

Suggested Citation

  • Frank A. Scott & Mark C. Berger & John E. Garen, 1995. "Do Health Insurance and Pension Costs Reduce the Job Opportunities of Older Workers?," ILR Review, Cornell University, ILR School, vol. 48(4), pages 775-791, July.
  • Handle: RePEc:sae:ilrrev:v:48:y:1995:i:4:p:775-791
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    Cited by:

    1. David Neumark, 2008. "The Age Discrimination in Employment Act and the Challenge of Population Aging," NBER Working Papers 14317, National Bureau of Economic Research, Inc.
    2. Wang Ping, 2009. "Effects of Disability-Based Underwriting Prohibitions on the Labor Market," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 4(1), pages 1-19, November.
    3. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2006. "Ethnic conflict and economic disparity: Serbians and Albanians in Kosovo," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 754-773, December.
    4. Sewin Chan & Ann Huff Stevens, 1999. "Job Loss and Retirement Behavior of Older Men," NBER Working Papers 6920, National Bureau of Economic Research, Inc.
    5. Kanika Kapur & José J. Escarce & M. Susan Marquis & Kosali I. Simon, 2005. "Where do the sick go? Health insurance and employment in small and large firms," Open Access publications 10197/259, School of Economics, University College Dublin.
    6. Garen, John & Berger, Mark & Scott, Frank, 1996. "Pensions, non-discrimination policies, and the employment of older workers," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(4), pages 417-429.
    7. Ilmakunnas, Pekka & Ilmakunnas, Seija, 2011. "Hiring older employees: Do incentives of early retirement channels matter?," MPRA Paper 30885, University Library of Munich, Germany.
    8. Werner Eichhorst & Tito Boeri & Michela Braga & An de Coen & Galasso Vicenzo & Maarten Gerard & Michael J. Kendzia & Christine Mayrhuber & Jakob Louis Pedersen & Ricarda Schmidl & Nadia Steiber, 2013. "Combining the Entry of Young People in the Labour Market with the Retention of Older Workers," WIFO Studies, WIFO, number 46988, january-j.
    9. James Bailey, 2014. "Who pays the high health costs of older workers? Evidence from prostate cancer screening mandates," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3931-3941, November.
    10. Henseke, Golo & Tivig, Thusnelda, 2008. "Age, occupations, and opportunities for older workers in Germany," Thuenen-Series of Applied Economic Theory 86, University of Rostock, Institute of Economics.
    11. David Blau & Tetyana Shvydko, 2011. "Labor Market Rigidities and the Employment Behavior of Older Workers," ILR Review, Cornell University, ILR School, vol. 64(3), pages 464-484, April.
    12. John S. Heywood & Uwe Jirjahn, 2016. "The hiring and employment of older workers in Germany: a comparative perspective
      [Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland: Eine vergleichende Perspektive]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 349-366, December.
    13. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2008. "Gender and Ethnicity in Post-Conflict Kosovo," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    14. Heywood, John S. & Jirjahn, Uwe, 2016. "The hiring and employment of older workers in Germany : a comparative perspective (Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland : eine vergleichende Perspektive)," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(4), pages 349-366.
    15. Kanika Kapur & José J. Escarce & M Susan Marquis & Kosali I. Simon, 2008. "Where Do The Sick Go? Health Insurance and Employment in Small and Large Firms," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 644-664, January.
    16. Christian Pfeifer, 2009. "Adjustment of Deferred Compensation Schemes, Fairness Concerns, and Hiring of Older Workers," Working Paper Series in Economics 151, University of Lüneburg, Institute of Economics.
    17. Sumon Kumar Bhaumik & Ira N Gang & Myeong-Su Yun, 2009. "Rationality as a Barrier to Peace: Micro-evidence from Kosovo," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 51(2), pages 242-264, June.
    18. Sumon Bhaumik & Ira Gang & Myeong-Su Yun, 2005. "Ethnic Conflict and Economic Disparity: Serbians & Albanians in Kosovo," William Davidson Institute Working Papers Series wp808, William Davidson Institute at the University of Michigan.
    19. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, Institute for the Study of Labor (IZA).
    20. John S. Heywood & Uwe Jirjahn, 2015. "The German Labor Market for Older Workers in Comparative Perspective," Research Papers in Economics 2015-02, University of Trier, Department of Economics.
    21. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
    22. Pfeifer, Christian, 2009. "An Intra-Firm Perspective on Wage Profiles and Employment of Older Workers with Special Reference to Human Capital and Deferred Compensation," Hannover Economic Papers (HEP) dp-413, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    23. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
    24. Katharine G. Abraham & Susan N. Houseman, 2008. "Removing Barriers to Work for Older Americans," Book chapters authored by Upjohn Institute researchers,in: Timothy J. Bartik & Susan N. Houseman (ed.), A Future of Good Jobs? America's Challenge in the Global Economy, chapter 5, pages 161-202 W.E. Upjohn Institute for Employment Research.

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