What set of circumstances will tend to cause an individual to choose not to participate in the labor force? What generalizations can you formulate on the basis of:
a - education
b - the presence of preschool children
c - level of spouse's income
d - race
e - location of a household (urban or rural) on the one hand and the probability that a married woman will be a labor force participant on the other?
II) In the US, 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% of their average earnings. We also observe that the proportion of workers receiving disability benefits is much lower in the US than in the latter two nations. Are these findings consistent with the work-leisure model? Explain.