First published in 1983. This text is designed to enable
intermediate and advanced students to attain familiarity with the
theoretical concepts used in labour market analysis, and to apply
them fruitfully to the economic problem of labour markets. Each
chapter of Section I deals with a different theoretical development
of the basic labour market model of utility maximising labour
supply and the marginal productivity theory of labour demand. In
addition, the authors discuss in depth uncharted territory
including the analysis of uncertainty and discrimination in labour
markets and advances in human capital theory, in each case covering
the implications both for equity and the efficient allocation of
resources. Each chapter of Section II analyses an important
economic problem - for instance wage determination, unemployment
and inflation - using the theoretical insights derived from Section
I. The contributions of different theoretical developments are
assessed by reference to the current state of empirical research
into labour market problems. This book stresses the interaction
between labour market mechanisms and also between market and
non-market forces in the belief that this will lead to a greater
understanding of the operation of the labour market than can be
gained by viewing each theoretical development in isolation from
the others.
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