Obesity has become a major concern in America, and one of the issues
surrounding this distress is the fact that obese individuals are
at much higher risk of chronic -- not to mention costly -- conditions
such as heart disease, diabetes and hypertension. In fact, annual
medical expenditures are $732 higher on average for obese adults
than for normal-weight adults.
What's more, studies have shown, time and again, that obese
employees are paid less than normal-weight employees doing similar
jobs, leading many to attribute the gap in pay to prejudice against
workers based on their appearance.
But is this really the case?
Researchers designed a study not only to answer this burning question,
but also to determine who is responsible for the cost of employer-sponsored
health insurance ... employers or employees? They found that
obese workers are indeed paid lower wages, but only when they have
access to employer-sponsored insurance.
Revealing the Truth
Comparing the hourly pay of obese and non-obese workers with health
insurance, and adjusting for factors such as education, experience
and job type, researchers found:
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Obese insured workers earned significantly less -- almost $3.50
per hour -- than non-obese insured workers in 1998.
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The gap in pay starts out modestly when these workers are young,
but widens over time -- which indicates the pay scale of the obese
worker rises more slowly than that of the non-obese with employer-funded
health insurance.
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There was no significant different in pay in the hourly wages
of obese and non-obese workers without on-the-job health insurance,
a sign that the obese workers' lower pay is an issue of higher
expected medical costs, rather than outright prejudice.
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There was no wage difference between obese and non-obese workers
who received other kinds of benefits, such as retirement plans
or life insurance, reinforcing the notion that the pay adjustment
is due to greater health care costs.
These results provide the strongest evidence to date that the costs
of employer-sponsored health insurance are passed on to obese workers
through lower wages.
National
Bureau of Economic Research May 2005
Medical
News Today May 9, 2005
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