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Table of Contents

Chapter 1. Introduction to Labor Economics
Chapter 2. Labor Supply
Chapter 3. Labor Demand
Chapter 4. Labor Market Equilibrium
Chapter 5. Compensating Wage Differentials
Chapter 6. Human Capital
Chapter 7. The Wage Structure
Chapter 8. Labor Mobility
Chapter 9. Labor Market Discrimination
Chapter 10. Labor Unions
Chapter 11. Incentive Pay
Chapter 12. Unemployment
Mathematical Appendix

Detailed Table of Contents


Chapter 1. Introduction to Labor Economics
         1. An Economic Story of the Labor Market
         2. The Actors in the Labor Market
         3. Why Do We Need a Theory?
         4. The Organization of the Book
         Appendix: An Introduction to Regression Analysis

Chapter 2. Labor Supply
         1. Measuring the Labor Force
         2. Basic Facts About Labor Supply
         3. The Worker's Preferences
         4. The Worker's Constraints
         5. The Hours of Work Decision
         6. To Work or Not to Work?
         7. The Labor Supply Curve
         8. Estimates of the Labor Supply Elasticity
         9. Labor Supply of Women
         10. Policy Application: Welfare Programs and Work Incentives
         11. Policy Application: The Earned Income Tax Credit
         12. Labor Supply over the Life Cycle
         13. Policy Application: The Decline in Work Attachment Among Older Workers

Chapter 3. Labor Demand

         1. The Production Function
         2. The Employment Decision in the Short Run
         3. The Employment Decision in the Long Run
         4. The Long-Run Demand Curve for Labor
         5. The Elasticity of Substitution
         6. Policy Application: Affirmative Action and Production Costs
         7. Marshall's Rules of Derived Demand
         8. Factor Demand with Many Inputs
         9. Overview of Labor Market Equilibrium
         10. Policy Application: The Employment Effects of Minimum Wages
         11. Adjustment Costs and Labor Demand
         12. Rosie the Riveter as an Instrumental Variable

Chapter 4. Labor Market Equilibrium
         1. Equilibrium in a Single Competitive Labor Market
         2. Competitive Equilibrium across Labor Markets
         3. Policy Application: Payroll Taxes and Subsidies
         4. Policy Application: Payroll Taxes versus Mandated Benefits
         5. Policy Application: The Labor Market Impact of Immigration
         6. The Economic Benefits from Immigration
         7. Policy Application: Hurricanes and the Labor Market
         8. The Cobweb Model
         9. Noncompetitive Labor Markets: Monopsony
         10. Noncompetitive Labor Markets: Monopoly

Chapter 5. Compensating Wage Differentials

         1. The Market for Risky Jobs
         2. The Hedonic Wage Function
         3. Policy Application: How Much is a Life Worth?
         4. Policy Application: Safety and Health Regulations
         5. Compensating Differentials and Job Amenities
         6. Policy Application: Health Insurance and the Labor Market

Chapter 6. Human Capital

         1. Education in the Labor Market: Some Stylized Facts
         2. Present Value
         3. The Schooling Model
         4. Education and Earnings
         5. Estimating the Rate of Return to Schooling
         6. Policy Application: School Construction in Indonesia
         7. Policy Application: School Quality and Earnings
         8. Do Workers Maximize Lifetime Earnings
         9. Schooling as a Signal
         10. Post-School Human Capital Investments
         11. On-the-Job Training
         12. On-the-Job Training and the Age-Earnings Profile
         13. Policy Application: Evaluating Government Training Programs

Chapter 7. The Wage Structure

         1. The Earnings Distribution
         2. Measuring Inequality
         3. The Wage Structure: Basic Facts
         4. Policy Application: Why Did Wage Inequality Increase?
         5. The Earnings of Superstars
         6. Inequality across Generations

Chapter 8. Labor Mobility

         1. Geographic Migration as a Human Capital Investment
         2. Internal Migration in the United States
         3. Family Migration
         4. Immigration in the United States
         5. Immigrant Performance in the U.S. Labor Market
         6. The Decision to Immigrate
         7. Policy Application: Labor Flows in Puerto Rico
         8. Policy Application: Intergenerational Mobility of Immigrants
         9. Job Turnover: Facts
         10. The Job Match
         11. Specific Training and Job Turnover
         12. Job Turnover and the Age-Earnings Profile

Chapter 9. Labor Market Discrimination

         1. Race and Gender in the Labor Market
         2. The Discrimination Coefficient
         3. Employer Discrimination
         4. Employee Discrimination
         5. Customer Discrimination
         6. Statistical Discrimination
         7. Experimental Evidence on Discrimination
         8. Measuring Discrimination
         9. Policy Application: Determinants of the Black-White Wage Ratio
         10. Discrimination against Other Groups
         11. Policy Application: Determinants of the Female/Male Wage Ratio

Chapter 10. Labor Unions

         1. Unions: Background and Facts
         2. Determinants of Union Membership
         3. Monopoly Unions
         4. Policy Application: Unions and Resource Allocation
         5. Efficient Bargaining
         6. Strikes
         7. Union Wage Effects
         8. Nonwage Effects of Unions
         9. Policy Application: Public Sector Unions

Chapter 11. Incentive Pay

         1. Piece Rates and Time Rates
         2. Tournaments
         3. Policy Application: The Compensation of Executives
         4. Work Incentives and Delayed Compensation
         5. Efficiency Wages

Chapter 12. Unemployment

         1. Unemployment in the United States
         2. Types of Unemployment
         3. The Steady-State Rate of Unemployment
         4. Job Search
         5. Policy Application: Unemployment Compensation
         6. The Intertemporal Substitution Hypothesis
         7. The Sectoral Shifts Hypothesis
         8. Efficiency Wages Revisited
         9. Implicit Contracts
         10. Policy Application: The Phillips Curve
         11. Policy Application: The Unemployment Gap between Europe and the United States

Mathematical Appendix: Some Standard Models in Labor Economics

Sample Chapters

Chapter 2. Labor Supply
Chapter 4. Labor Market Equilibrium
Mathematical Appendix