13. In the United States payments to disabled workers on the average replace about half of their...

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13. 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 disabled workers 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.

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Contemporary Labor Economics

ISBN: 9780073375953

9th Edition

Authors: Campbell McConnell, Stanley Brue, David Macpherson

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