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Full Description
This text covers the essential aspects of modern labor economics from an international perspective. A highly accessible text with numerous examples, key terms, and class-tested end-of-chapter questions.
Contents
Preface CHAPTER 1 The Study of Labor Economics. The Scope of Labor Economics. The Method of Labor Economics. Labor Market Theory. Labor Market Institutions. Empirical Analysis. Policy Analysis. International Comparisons. The Plan of This Book. Appendix: Regression Analysis. CHAPTER 2 The Demand Marginal Product of Labor. The Short-Run Demand for Labor. The Short-Run Demand for Labor: An Example. Conditions for the MP to Represent Labor Demand. The Demand for Labor in Noncompetitive Product Markets. What Determines the Position of the Short-Run Demand for Labor? A Note on Exploitation. The Demand for Labor in the Long Run. Appendix: Technological Change and Labor Demand CHAPTER 3 Topics in Labor Demand Elasticities. The One-Wage Elasticity of Labor Demand. The Cross-Elasticity of Labor Demand. Imports from Low-Wage Countries Reduce the Domestic Demand for Labor?. Extensions and Embellishments of Marginal Productivity Theory. The Independence of Wages and Productivity. Fixed Costs of Employment. Are Workers Paid Their Marginal Product? Appendix: A Test of the Marginal Productivity Theory: A Cobb-Douglas Exercise CHAPTER 4 The Supply of Labor: Labor Force Participation. International Labor Force Participation. The Theory of Labor Force Participation for an Individual. The Theory of Labor Force Participation for Groups. Applications of the Theory. Young Workers. Older Male Workers Women. Race and Residence. CHAPTER 5 The Supply of Old Days?. Worker Preferences and Hours Worked. The Theory of Hours of Work for an Individual. Applications of the Theory. Variations on the Wage Line. Some Extensions of the Individual Model. Family Models. Life-Cycle Model. Empirical Evidence on Labor Supply Elasticities. CHAPTER 6 Human Capital Analysis. Some Background. Education and Age-Earnings Profiles. PUTTING Education. The Net Present Value Approach. The Internal Rate of Return Degree Do?. The Evidence. Bias in Rate of Return Estimates. Ability Bias. Selection Bias. Generic versus Specific Human Capital. PUTTING THEORY TO WORK: Forensic Economists and Valuing a Life. Externalities, Equity, and Subsidies. Human Capital and Mobility CHAPTER 7 Labor Market Equilibrium. A Strong Market for Economics PhDs in the United States. Empirical Evidence. Equilibrium across Different. Labor Markets. Supply Adjustments. Demand Adjustments. Compensating Differentials. Empirical Studies of Wage Differentials. Interregional Migration and Wage Convergence. AROUND THE WORLD: Labor Mobility in Europe. Compensating Differentials for Job Safety. Trade and Relative Wages. The Relative Supply-Demand Model. Theories of Trade Immigration Policy. CHAPTER 8 Information and Job Search. The Fixed Sample Search Model. The Sequential Search Model. An Example. A More Formal Model. Matching Models. Equilibrium Search Models. The Duration of Unemployment and the Hazard Function. AROUND THE WORLD: The Reservation Wage of Polish Job Unemployment Benefits and Wage Offers. CHAPTER 9 Monopsony and Minimum Wages. Wage and Employment Determination under Conditions of Monopsony. Where Does Monopsony Exist?. Geographic Monopsony. Government as a Monopsonistic Employer. The Market for Professional Athletes. Dynamic Monopsony. PUTTING Minimum Wages. Empirical Evidence on the Employment Effect of Minimum Wages. The Card-Krueger "Natural Experiment" Study. Other Minimum Wage Studies. Econometric Studies. Other Effects of the Minimum Wage. PUTTING THEORY TO WORK: A Living Wage?. Chapter 10 Internal Labor Markets. The Characteristics of ILMs. The Importance of Long-Term Employment Relations. Job Hierarchy and Internal Wage Structures. Types of ILMs in the U.S. Economy. The Evolution of ILMs in the United States. The U.S. Labor Market a Century Ago The Emergence of ILMs. Are ILMs Becoming Less Important? AROUND THE WORLD: The Long-Term Employment Relationship. ILMs and Firm Efficiency. Implicit Contracts. Efficiency Aspects of ILMs. The Case of Academic Tenure. Implications of ILMs for Labor Analysis. Wage Determination. Collective Labor Market for Temporary Workers. CHAPTER 11 Personnel Economics. Motivating Worker Effort. Wages and the Supply of Effort. Effort and Output Incentives Increase Effort and Productivity?. Difficulties with Implementing Incentive Schemes. Basic Concepts. The Probation Period. Bonuses and Merit Performance in Sports. Fringe Benefits. Other Wage Policy Models. Efficiency Management and Productivity. CHAPTER 12 Unions and Collective Bargaining. A Profile of Unionism in the United States. Legislation and Labor Union Growth. Other Countries. Theories of Union Growth. Union Goals and Objectives. Union Monopoly Models. Rent Maximization. Maximization of the Wage Bill. The Median Voter Model. The Utility-Maximization Model. Union Bargaining Power and Activity. The Effects of Unions. Measuring Union Wage Effects: The Problems. Measuring Union Wage Effects: The Methods. The Effects of Unions on Wages. The Effects of Unions on Other Economic Variables. CHAPTER 13 Labor Market Discrimination. The Many Faces of Labor Market. Discrimination. Gender and Women's Pay and Family Responsibilities. Racial and Ethnic Differences. Theories of Labor Market Discrimination. Personal Prejudice Theory. Societal Prejudice at Work?. Measuring the Effect of Discrimination on Pay Gaps. Case Studies. The Earnings Function Approach. Discrimination and the Irish Troubles. What Does the Research Show? Earnings Gaps. Evidence from Audit Studies. Discrimination in Sports. Anti-Discrimination Policies. The Equal Pay Act. The Civil Rights Act. Discrimination on the Basis of Age and Disability. Affirmative Action Comparable Worth. The Effects of Anti-Discrimination Policies. CHAPTER 14 Unemployment. Measures of Unemployment. The Unemployment Rate. Labor Market Flows. The Duration of among Professional Workers. The Natural Rate of Unemployment. Estimating the Natural Rate. Determinants of the Natural Rate. Changes in the Natural Rate. Fluctuations around the Natural Rate. The Real Business Cycle Model. Wage PhD Economists. Evidence on Wage Rigidity. The Wage Curve. A Model of the Aggregate Labor Market. AROUND THE WORLD: Unemployment in Eastern Germany. Unemployment Policy: The OECD Jobs Strategy. CHAPTER 15 Wage Inequality, Income Inequality, and Poverty. Wage Inequality and Labor Market Performance. Measuring Inequality. Percentile Wage. Differentials. The Gini Coefficient. The Variance of the Logarithm of Earnings. Trends in Wage Inequality. International Comparisons. AROUND THE WORLD: Changes in Inequality during Chile's Economic Miracle. What's Different about the United States?. Other Aspects of Rising Wage Inequality. Causes of Increased Wage Inequality. A Relative Supply and Demand Model. Causes of Shifts in Demands for Skilled Workers. Causes of Shifts in the Relative Supply of Skilled Workers. Changes in Labor Market Institutions. The Effect of Unemployment Rates. From Wage Inequality to Income Inequality. Earnings Mobility. Measuring Inequality in Living Standards. The Recipient Unit. Trends in Income Inequality. THE WAY WE WORK: Taxes, Transfers, and Inequality. Poverty. The Measurement of Poverty. Poverty Trends in the United States. Poverty in Other Countries. The Feminization of Poverty and the Family Pay Gap. AROUND THE WORLD: The Dynamics of Poverty. Welfare Disincentives and Welfare Reform. Spatial Isolation and Urban Poverty. Policy Options. Keeping Unemployment Low. Increasing the Relative Supply of Skilled Workers. Shifting Demand toward Low-Skill Workers. Increasing Labor Market Access. Maintaining the Real Minimum Wage. Index.
