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CRS-5 protected under the statute in favor of older members of the protected class.25 According to the Court, although the ADEA "forbids discriminatory preference for the young over the old," it does not prohibit favoring the old over the young, even when the younger and older employees are within the protected class, i.e., age forty or older.26 In contrast, the Court has separately held that the [...] In addition, a bona fide employee benefit plan must satisfy the "equal cost equal benefit" principle that provides parity between the amount employers spend on benefits for older and younger workers.

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Given the level of its production in the U.S., a firm that produces more abroad tends to have fewer employees in the U.S. and to pay slightly higher salaries and wages to them. The most likely explanation seems to be that the larger a firm's foreign production, the greater its ability to allocate the more labor-intensive and less skill-intensive portions of its activity to locations outside the United States. This relationship is stronger among manufacturing firms than among service industry firms, probably because services are less tradable than manufactured goods or components, and service industries may therefore be less able to break up the production process to take advantage of differences in factor prices.

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