Labor Economics 5th Edition by George Borjas

Exercise 4

Consider a firm that offers the following employee benefit. When a worker turns 60 years-old she is given a one-time opportunity to quit her job, and in return the firm will pay her a bonus of 1.5 times her annual salary and pay her health insurance premiums until she is eligible for Medicare.
(a) What problem is the firm trying to solve by offering this benefit
(b) Why is the health insurance premium portion of the benefit important in the United State s
(c) For what industries might one expect such opportunities to be presented to workers