For cases in which employers do not offer training opportunities, offer workers over a certain age a partial personal tax credit for work-related educational expenses, up to a dollar limit. This also encourages firms to restrict the hours of part-timers to less than the statutory minimum. A change here would allow employers and employees to agree to more flexible work contracts to the benefit of both. Reverse Medicare policy to make Medicare, rather than employment-based health insurance, the primary source of health care coverage for workers aged 65 and over. This would encourage the employment of older workers by, in essence, subsidizing their compensation.
Health costs are a significant concern to employers, especially for older workers.
In the 1980s, Medicare eligibility rules were changed to make Medicare secondary to benefits provided by the employer's insurance, which must meet its obligations before Medicare steps in. These changes reduced Medicare expenses, but raised a major barrier to the employment of older workers. Reversing the original policy would remove this barrier. Eliminate the qualifying-child requirement for the Earned Income Tax Credit. This would make some low-income older workers eligible for this credit, and, to the extent that the employer received some of the tax relief, would make the elderly more attractive candidates for employment.