Obamacare impacts hiring decisions-washingtonpost: Starting in 2014, Obamacare requires firms with an average of fifty or more full-time workers in the previous calendar year – 2013; this year – to provide health insurance to their employees or face penalties. This creates what economists (and non-economists) describe as an incentive not to hire a fiftieth worker. It may even provide an incentive for firms to let a few workers go if doing so would get them under fifty workers. These poll results suggest that both are happening. . . . So given all this, let me throw something out there: During a labor market crisis, perhaps the government shouldn’t provide a disincentive for small businesses to grow their workforces.
Thursday, May 16, 2013
Obamacare impacts hiring decisions
Obamacare impacts hiring decisions-washingtonpost: Starting in 2014, Obamacare requires firms with an average of fifty or more full-time workers in the previous calendar year – 2013; this year – to provide health insurance to their employees or face penalties. This creates what economists (and non-economists) describe as an incentive not to hire a fiftieth worker. It may even provide an incentive for firms to let a few workers go if doing so would get them under fifty workers. These poll results suggest that both are happening. . . . So given all this, let me throw something out there: During a labor market crisis, perhaps the government shouldn’t provide a disincentive for small businesses to grow their workforces.
