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

Exercise 6

Use a work-leisure diagram to demonstrate that (a) if African-Americans have labor market opportunities that are inferior to those of whites and (b) nonlabor income is available in the form of, say, disability benefits, African-Americans will have lower participation rates even though the work-leisure preferences (indifference curves) of African-Americans and whites are identical.