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Re: Companies that offer “employer sponsored insurance” (ESI) pay a portio [#permalink]
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Pre-thinking:

Conclusion: ESI decreases worker absenteeism.

Premise(s) on which it is based: Companies that offered ESI had worker absentee rates 22% lower, on average, than those at companies that did not offer ESI.

Now, clearly, correlation does not imply causation. Whenever there is a causality (X --> Y) related "weaken the argument" question, we are looking for one of the following three things:

i) Alternate cause for Y
ii) Reverse causality (ie; it's not that X --> Y but Y --> X)
ii) Third factor Z causing both X and Y

Here, X = company providing ESI and Y = lower absenteeism. Let us examine the options:


A) Results similar to those cited for the manufacturing sector have been found in other sectors of the economy where ESI is offered. This provides none of the above 3 alternatives. What happens in other sectors does not explain why it happens in this particular sector. Eliminate.

B) At companies that offer ESI, employees have access to preventative health care such as regular check-ups, routine laboratory tests, and nutrition counseling. These can actually be the causes for lower absenteeism. But since employees having access to check-ups, lab tests and counselling is as a result of the ESI (that is evident from the way sentence is structured that these are made available to the employees as a part of the ESI), this acts a s a strengthener. Eliminate.

C) Because initiating an ESI plan requires a lot of paperwork for the company, employees, and the insurance provider, doing so is complex and time-consuming. This does not have any connection to lower absenteeism. Eliminate.

D) Many firms in the manufacturing sector have improved workplace safety and decreased the occurrence of on-the-job injuries in the last five years, and most of these companies
introduced ESI at the same time. This provides an alternative explanation for lower absenteeism viz; increased workplace safety leading to lower injuries. This satisfies (i) above. Correct answer.

E) In manufacturing firms where ESI is offered, the average productivity is 2% higher than it is in those firms where workers are not covered by an ESI plan. We are not concerned here with productivity, only with absenteeism. Irrelevant. Eliminate.

Hope this helps.
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Re: Companies that offer employer sponsored insurance (ESI) pay a portio [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Companies that offer employer sponsored insurance (ESI) pay a portio [#permalink]
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