Labor and the Economy

Labor and the Economy provides the theory, empirical studies of the labor force, and public policies that flow from the theories and empirical studies in the field of labor economics. The book focuses on economic issues and debates. Topics discussed in the text include the history of labor economics; the microeconomic foundations of labor economics; the interaction between labor's effect on the macroeconomy and the macroeconomy's effect on labor; and the interrelation of trade unions with other economic institutions. Graduate and undergraduate students of economics as well as practicing economists will find the book a good reference material.

ContentsPreface 1. Labor and the Economy Aims of the Book Recent History of Labor Economics Labor Economics after World War II: The High Wage Economy The 1960s The 1970s Labor Economics Today Plan of the Book 2. The Labor Force and the Economy Labor Markets and the Economy The Labor Force Unemployment Demographic Composition of the Labor Force The Changing Structure of Employment in the American Economy Union Membership Summary Part I Labor and the Microeconomy A. Theory of Wages 3. Wage Theory: Labor Demand Neoclassical Wage Theory: A First Glimpse The General Nature of Labor Supply and Demand Demand for Labor in the Firm: Initial Observations Combining Labor with Capital: The Law of Diminishing Returns The Marginal Product of Labor The Firm's Demand for Labor: Technology and Product Markets The Level of Employment in the Firm The Marginal Revenue Products and Salaries of Professional Basketball Players Wage Changes and Employment Changes: The Elasticity of Demand for Labor Applications of the Elasticity of Labor Demand Changes in the Demand for Labor Summary Study Questions Further Reading 4. Wage Theory: Labor Supply Labor Supply: Hours of Work The Wage and Hours of Work Labor Time Supplied to the Market by the Household Income and Substitution Effects in the Household's Labor Supply Decision Perspective on the Backward-Bending Supply Segment Hours of Work in the American Economy Elasticity of Labor Supply Income Maintenance Experiments and Labor Supply Labor Force Participation Rates The Quality of Labor Supply: Human Capital Summary Study Questions Further Reading Appendix: The Income and Substitution Effects and Household Labor Supply 5. Wage Determination and Market Structure Wage Determination in Perfectly Competitive Markets The Cambridge Critique: Heterogeneity in the Labor Market Wage Determination in a Perfectly Competitive Labor Market Observation and Interpretation: Wage Determination in Perfect Competition Imperfect Competition and Wage-Employment Determination Oligopoly and Wage-Employment Determination Monopsony and Wage-Employment Determination Monopsony and the Minimum Wage Market Structure and Wage-Employment Determination Summary Study Questions Further Reading 6. Trade Unions and Wage Determination Trade Union Membership in the United States The Trade Union and Its Goals Institutional Theory and Wage Determination The Trade Union as an Economic Institution Bargaining Model of Wage Determination Collective Bargaining and Wage Determination Summary Study Questions Further Reading 7. The Impact of Trade Unions on Wages Methodological Problems Wage Differentials for Union and Nonunion Workers over Time The Impact of Trade Unions on Wages at a Fixed Point in Time The Magnitude of Trade Union Impacts on Wages The Spillover Effect and Pattern Bargaining Summary Study Questions Further Reading B. Labor Markets and Individual Incomes 8. Poverty and Inequality in the American economy Poverty: Meaning and Measurement Counting the Poor The Incidence of Poverty Critics of the Official Poverty Measure Inequality in Income and Wealth Some Observations on the Distribution of Wealth and Income Summary Study Questions Further Reading 9.