Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 6

In the United States, payments to disabled workers on the average replace about half of their former earnings. In some other countries such as Sweden and the Netherlands, workers with disabilities receive as much as 70 to 90 percent of their average earnings. We also observe that the proportion of workers receiving disability benefits is much lower in the United States than in the latter two nations. Are these findings consistent with the work-leisure model Explain.