2 ms·
It has become impossible to me to read articles on this topic that don't make clear if their "stagnant wages" are corrected for the health care benefits eating
by ajmurmann 8y ago
It has become impossible to me to read articles on this topic that don't make clear if their "stagnant wages" are corrected for the health care benefits eating up all potential increases for workers who are at the bottom end of the compensation range. Ever since this effect was explained on econtalk (https://www.econtalk.org/mark-warshawsky-on-compensation-health-care-costs-and-inequality/ https://www.econtalk.org/mark-warshawsky-on-compensation-hea...) I'm convinced that the US health care system is the #1 problem that needs fixing.
- dash2 8y agoFrom the abstract: Welfare losses, measured as a one-time asset compensation, are 12.5%, 8%, and 7.2% of the present discounted value of earnings for single men, couples, and single women, respectively. Lower wages explain 47-58% of these losses, shorter life expectancies 25-34%, and higher medical expenses account for the rest.
- ajmurmann 8y agoI'm still not clear if higher medical expenses refers to expenses that were directly paid by the worker or also accounts for costs the employer paid as part of the total compensation package but that never passed through the hands of the worker.