CHAPTER 1. INTRODUCTION
1-1. AN ECONOMIC STORY OF THE LABOR MARKET
1-2. THE ACTORS IN THE LABOR
MARKET
1-3. WHY DO WE NEED A
THEORY?
1-4. THE ORGANIZATION OF THE
BOOK
Summary
Key Concepts
Review Questions
Appendix: An Introduction to
Regression Analysis
CHAPTER 2. LABOR SUPPLY
2-1. MEASURING THE LABOR
FORCE
2-2. BASIC FACTS ABOUT LABOR
SUPPLY
2-3. THE WORKER’S
PREFERENCES
2-4. THE BUDGET CONSTRAINT
2-5. THE HOURS OF WORK
DECISION
2-6. TO WORK OR NOT TO WORK?
2.7. THE LABOR SUPPLY CURVE
2-8. ESTIMATES OF THE LABOR
SUPPLY ELASTICITY
2-9. LABOR SUPPLY OF WOMEN
2-10. POLICY APPLICATION:
WELFARE PROGRAMS AND WORK INCENTIVES
2.11. POLICY APPLICATION: THE
EARNED INCOME TAX CREDIT
Summary
Key Concepts
Review Questions
Problems
THEORY
AT WORK examples:
Dollars and Dreams
Winning the LOTTO Will Change Your Life
The Laffer Curve
CHAPTER 3. TOPICS IN LABOR SUPPLY
3-1. LABOR SUPPLY OVER THE LIFE
CYCLE
3-2. LABOR SUPPLY OVER THE
BUSINESS CYCLE
3-3. RETIREMENT
3-4. POLICY APPLICATION: THE
DECLINE IN WORK ATTACHMENT AMONG OLDER WORKERS
3-5. HOUSEHOLD PRODUCTION
3-6. FERTILITY
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
The Notch Babies
Poor Relief and Fertility
CHAPTER 4. LABOR DEMAND
4-1. THE PRODUCTION FUNCTION
4-2. THE EMPLOYMENT DECISION
IN THE SHORT RUN
4-3. THE EMPLOYMENT DECISION
IN THE LONG RUN
4-4. THE LONG-RUN DEMAND
CURVE FOR LABOR
4-5. THE ELASTICITY OF
SUBSTITUTION
4-6. POLICY APPLICATION:
AFFIRMATIVE ACTION AND PRODUCTION COSTS
4-7. MARSHALL’S RULES
OF DERIVED DEMAND
4-8. FACTOR DEMAND WITH MANY
INPUTS
4-9. OVERVIEW OF LABOR
MARKET EQUILIBRIUM
4-10. POLICY APPLICATION:
THE EMPLOYMENT EFFECTS OF MINIMUM WAGES
4-11. ADJUSTMENT COSTS AND
LABOR DEMAND
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
California’s Overtime Regulations and Labor Demand
The Minimum Wage and Puerto Rico
CHAPTER 5. LABOR MARKET EQUILIBRIUM
5-1. EQUILIBRIUM IN A SINGLE
COMPETITIVE LABOR MARKET
5-2. COMPETITIVE EQUILIBRIUM
ACROSS LABOR MARKETS
5-3. POLICY APPLICATION:
PAYROLL TAXES AND SUBSIDIES
5-4. POLICY APPLICATION:
IMMIGRATION
5-5. THE COBWEB MODEL
5-6. NONCOMPETITIVE LABOR
MARKETS: MONOPSONY
5-7. NONCOMPETITIVE LABOR
MARKETS: MONOPOLY
5-8. WAGES AND EMPLOYMENT IN THE
PUBLIC SECTOR
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK examples
The Intifadah and Palestinian Wages
The Clinton Health Care Program
CHAPTER 6. COMPENSATING WAGE DIFFERENTIALS
6-1. THE MARKET FOR
RISKY JOBS
6-2. THE HEDONIC WAGE
FUNCTION
6-3. POLICY
APPLICATION: HOW MUCH IS A LIFE WORTH?
6-4. POLICY
APPLICATION: SAFETY AND HEALTH REGULATIONS
6-5. COMPENSATING
DIFFERENTIALS AND JOB AMENITIES
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK examples
Why Do Public Interest Lawyers Earn Less?
Workers’ Compensation May Be Hazardous to Your Health
CHAPTER 7. HUMAN CAPITAL
7-1. EDUCATION IN THE LABOR
MARKET: SOME STYLIZED FACTS
7-2. PRESENT VALUE
7-3. THE SCHOOLING MODEL
7-4. THE WAGE GAP AMONG
WORKERS WHO DIFFER IN THEIR EDUCATION
7-5. ESTIMATING THE RATE OF
RETURN TO SCHOOLING
7-6. DO WORKERS MAXIMIZE
LIFETIME EARNINGS?
7-7. SCHOOLING AS A SIGNAL
7.8. POST-SCHOOL HUMAN CAPITAL
INVESTMENTS
7-9. ON-THE-JOB TRAINING
7-10. ON-THE-JOB TRAINING
AND THE AGE-EARNINGS PROFILE
7-11. POLICY APPLICATION:
EVALUATING GOVERNMENT TRAINING PROGRAMS
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Can We Afford to Improve the Skills of High School Dropouts?
Is a GED Better than Nothing?
Formal Training Programs
The Labor Market Effects of Substance Abuse
CHAPTER 8. THE WAGE STRUCTURE
8-1. THE EARNINGS
DISTRIBUTION
8-2. CHANGES IN THE WAGE
STRUCTURE: BASIC FACTS
8.3. POLICY APPLICATION: WHY DID
WAGE INEQUALITY INCREASE?
8.4. THE EARNINGS OF SUPERSTARS
8.5. INEQUALITY ACROSS
GENERATIONS
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Computers, Pencils, and the Wage Structure
CHAPTER 9. LABOR MOBILITY
9-1. GEOGRAPHIC MIGRATION AS
A HUMAN CAPITAL INVESTMENT
9-2. INTERNAL MIGRATION IN
THE UNITED STATES
9-3. FAMILY MIGRATION
9-4. IMMIGRATION IN THE
UNITED STATES
9-5. IMMIGRANT PERFORMANCE
IN THE U.S. LABOR MARKET
9-6. THE DECISION TO
IMMIGRATE
9-7. POLICY APPLICATION: THE
ECONOMIC BENEFITS FROM IMMIGRATION
9-8. JOB TURNOVER: SOME
STYLIZED FACTS
9-9. THE JOB MATCH
9-10. SPECIFIC TRAINING AND
JOB TURNOVER
9-11. JOB TURNOVER AND THE
AGE-EARNINGS PROFILE
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Visas Available (If You Pass a Test or Pay Up!)
Health Insurance and Job-Lock
CHAPTER 10. LABOR MARKET DISCRIMINATION
10-1. RACE AND GENDER
IN THE LABOR MARKET
10-2. THE
DISCRIMINATION COEFFICIENT
10-3. EMPLOYER
DISCRIMINATION
10-4. EMPLOYEE
DISCRIMINATION
10-5. CONSUMER
DISCRIMINATION
10-6. STATISTICAL
DISCRIMINATION
10-7. MEASURING
DISCRIMINATION
10-8. POLICY
APPLICATION: DETERMINANTS OF THE BLACK-WHITE WAGE RATIO
10-9. POLICY
APPLICATION: DETERMINANTS OF THE MALE-FEMALE WAGE RATIO
10-10. DISCRIMINATION
AGAINST OTHER GROUPS
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Auditing Employer Hiring Practices
Beauty and the Beast
Consumer Discrimination and the NBA
Orchestrating Impartiality
CHAPTER 11. LABOR UNIONS
11-1. UNIONS IN THE UNITED STATES
11-2. DETERMINANTS OF UNION
MEMBERSHIP
11-3. MONOPOLY UNIONS
11-4. POLICY APPLICATION: UNIONS
AND RESOURCE ALLOCATION
11-5. EFFICIENT CONTRACTS
11-6. STRIKES
11-7. UNION WAGE EFFECTS
11-8. THE EXIT-VOICE HYPOTHESIS
11-9. POLICY APPLICATION: PUBLIC
SECTOR UNIONS
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Airline Deregulation and the Wages of Airline Mechanics
Lawyers and Arbitration
CHAPTER 12. LABOR MARKET CONTRACTS AND WORK INCENTIVES
12-1. PIECE RATES AND
TIME RATES
12-2. TOURNAMENTS
12-3. POLICY
APPLICATION: THE COMPENSATION OF EXECUTIVES
12-4. WORK INCENTIVES
AND DELAYED COMPENSATION
12-5. EFFICIENCY WAGES
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Work Effort among Navy
Recruiters
Work Effort in the PGA Tour
Did Henry Ford Pay Efficiency Wages?
CHAPTER 13. UNEMPLOYMENT
13-1. UNEMPLOYMENT IN THE UNITED STATES
13-2. FRICTIONAL AND STRUCTURAL UNEMPLOYMENT
13-3. THE STEADY-STATE RATE OF UNEMPLOYMENT
13-4. JOB SEARCH
13-5. POLICY APPLICATION: UNEMPLOYMENT COMPENSATION
13-6. THE INTERTEMPORAL SUBSTITUTION HYPOTHESIS
13-7. THE SECTORAL SHIFTS HYPOTHESIS
13-8. EFFICIENCY WAGES
13-9. IMPLICIT CONTRACTS
13-10. POLICY APPLICATION: THE TRADE-OFF BETWEEN
INFLATION AND UNEMPLOYMENT
Summary
Key Concepts
Review Questions
Problems
THEORY AT WORK EXAMPLES
Out of Work in the Workers’ Paradise
Jobs and Friends
Cash Bonuses and Unemployment