The Impact on Employment-Based Health Benefits of the Shift From a Manufacturing Economy to a Service Economy

The Inflation Rate and the Actuarial Balance of the OASDI Trust Funds

June 2004, Vol. 25, No. 6
Paperback, 16 pp.
PDF, 602 kb
Employee Benefit Research Institute, 2004

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Executive Summary

                              

The Impact on Employment-Based Health Benefits of the Shift From a Manufacturing Economy to a Service Economy—This article examines one structural change in the work force that has contributed to the decline in employment-based health benefits: the movement of workers from the manufacturing sector to the service sector. Between 1987 and 2002 not only did the percentage of workers in the manufacturing sector decline, but the probably that a worker in this sector had employment-based health benefits dropped as well, from 79 percent to 70 percent.


The Inflation Rate and the Actuarial Balance of the OASDI Trust Funds—This article examines the effects of varying just the inflation rate assumption on the Social Security program's actuarial balance over a 75-year period when all other assumptions are held constant. It finds that changing the assumed inflation rate by as little as 0.2 percentage points can cause the actuarial balance to change by 0.1 percentage points over this period.