The chapter presents a survey on the economics of labor market discrimination, motivated by two fundamental problems associated with income and wage differences among groups classified by sex, race, ethnicity, and other characteristics. The first is the inequity of long-lasting differences in...

The chapter presents a discussion on the theory of equalizing differences. The theory of equalizing differences refers to observed wage differentials required to equalize the total monetary and nonmonetary advantages or disadvantages among work activities and among workers themselves. On the...

The chapter presents a survey and exposition of the development of the earnings function as an empirical tool for the analysis of the determinants of wage rates. Generically, the term earnings function has come to mean any regression of individual wage rates or earnings on a vector of personal,...

The chapter presents a discussion on the dynamic models of labor demand. A firm does not hire its workforce afresh each day for the reason that it is cheaper not to do so. Hiring and firing generate costs for the firm over and above the weekly wage payment. As it is discussed, these costs ensure...

The chapter presents a discussion on the role of microdata in labor economics research. The chapter begins with a review of characteristics of papers published in selected journals (1965-83) in the field of labor economics. This review demonstrates the changing character of the field in terms of...

The human capital revolution of the 1960s and 1970s turned the previously peripheral topic of demand for education into a major area of research for labor economists. Analysis has focused on a variety of questions relating to the role of education in an economy, individual decision-making with...

The chapter presents some basic facts on retirement patterns and examines some reasons for the changes in behavior over time and differences across groups. Retirement is an important phenomenon in life-cycle labor supply. Not only does it mean a complete withdrawal from the labor force, but it...

The chapter presents a survey on home production. The terminology of the theory of home production has been used to extend economic analysis to such diverse fields as family formation (marriage and divorce), fertility decisions, and involvement in illegal activities. It has been adapted to...

The chapter presents an investigation on those microeconomic models of marital status and childbearing that contains implications for female labor supply. The chapter focuses its discussion primarily on the developed countries, principally the United States, but refers to developing country...