The Handbook brings together a systematic review of the research
topics, empirical findings, and methods that comprise modern labor
economics. It serves as an introduction to what has been done in
this field, while at the same time indicating possible future
trends which will be important in both spheres of public and
private decision-making. Part 1 is concerned with the classic
topics of labor supply and demand, the size and nature of the
elasticities between the two, and their impact on the wage
structure. This analysis touches on two fundamental questions: what
are the sources of income inequality, and what are the disincentive
effects of attempts to produce a more equal income distribution?
The papers in Part II proceed from the common observation that the
dissimilarity in worker skills and employer demands often tempers
the outcomes that would be expected in frictionless labor markets.
And the last section of the Handbook deals explicitly with the role
of institutional structures (e.g. trade unions) that now form an
important part of modern labor economics.
General
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