Preface to the Student Preface to the Instructor Part One 1. Introduction to Labor Economics 1.1 Tipping Busboys 1.2 Labor Economics Key Principles 1.3 Economic Detection Arguments and Explanations Standards for Evaluating Hypotheses Scientific Method 1.4 Data Current Population Survey (CPS) Current Employment Survey (CES) and Other Datasets Occupation Averages in the CPS 1.5 Empirical Methods Regression Causation and Instrumental Variables Before-and-After Comparison with and without a Control Group Confidence with Caution 1.6 For Your Toolbox Lines Slopes, Marginal Changes, and Elasticities Logarithms Random Variables and Distributions Adjusting for Inflation 2.

Labor Markets 2.1 Competitive Labor Market Demand for Nurses Supply of Nurses Equilibrium in the Market for Nurses Shifting the Equilibrium 2.2 Minimum Wage Effect of a Minimum Wage on Employment Preliminary Evidence New Jersey Raises Its Minimum Wage Two Rounds of Federal Minimum Wage Hikes 2.3 Taxes, Subsidies, and Employer Mandates Employment Taxes Wage Subsidy Employer Mandate 2.4 Multiple Competitive Labor Markets Multi-Market Equilibrium and Migration Minimum Wage with Partial Coverage 2.5 Monopsony Monopsony Model Application: Baseball''s Reserve System 3. Labor Supply 3.1 Motivating Evidence Participation and Employment Rates Weekly Hours of Work 3.

2 Hours of Work Opportunities Preferences Consumption-Leisure Choice Changing Nonlabor Income Changing the Wage Rate Labor Supply Curve 3.3 Applications Taxing Labor Income Incredible Shrinking Workweek Retirement 3.4 Whether to Work Reservation Wage Application: Commuting and Other Costs of Work Application: Cash Grants and Income Guarantees 3.5 Family Labor Supply and Home Production Family Labor Supply Home Production 3.6 Market Labor Supply 4. Labor Demand 4.1 Short-Run Labor Demand Production Function and the Total-Product Curve Average and Marginal Products of Labor Profit Profit-Maximizing Choice of Employment Short-Run Labor Demand Curve Factors that Shift Labor Demand in the Short Run Payroll Tax and Short-Run Labor Demand 4.2 Long-Run Labor Demand Production Function and Isoquant Curves Cost Function and Isocost Lines Cost-Minimizing Mix of Labor and Capital Application: Cross-Country Differences in Capital Intensity Profit-Maximizing Choice of Labor and Capital Long-Run Labor Demand Curve Factors that Shift Labor Demand in the Long Run Application: Short-Run v.

Long-Run Effects of the Minimum Wage 4.3 Market Labor Demand Application: Demand for Palestinian Labor in Israel Equilibrium Price Effects and Marshall''s Rules Part Two 5. Job Attributes 5.1 Market for Work on Dirty Jobs Supply of Labor to Dirty Jobs Demand for Labor on Dirty Jobs Equilibrium Wage Premium on Dirty Jobs 5.2 Model of Compensating Wage Differentials Wage-Dirt Curve Worker''s Job Choice Firm''s Job Choice Equilibrium Compensating Wage Differential Application: Occupational Safety Regulation Application: Value of Life 5.3 Workday and Job Choice Employer''s Interest in the Length of the Workday Compensating Wage Differentials for Long Workdays 5.4 Employee Benefits Composition of Pay Taxing Wages But Not Benefits But Cushy Jobs Pay More 6. Schooling 6.

1 Schooling as an Investment in Human Capital Wage Profiles and the Wage-Schooling Curve Wealth and Iso-Wealth Curves Wealth-Maximizing Schooling Choice and the Demand for Schooling Equilibrium Wage-Schooling Curve 6.2 Estimating the Rate of Return to Schooling Rate of Return to Schooling Across Occupations Differences in the Interest Rate Tuition, Death, and Taxes Differences in Ability Avoiding Ability Bias 6.3 Schooling as a Signal of Ability Signaling Model of Schooling Signaling or Human Capital? 6.4 Application: Schooling and the Workweek 7. Training, Turnover, and Migration 7.1 General Training On-the-Job Training as an Investment Productivity and Wage Profiles Who Pays for General Training? Wages and Work Experience Labor Supply over the Life Cycle 7.2 Applications Military Training of Commercial Pilots MBAs Baseball''s Reserve System 7.3 Specific Training Who Pays for Specific Training? Specific Training and Turnover 7.

4 Matching Models of Turnover Searching on the Job Learning the Value of the Match 7.5 Migration Migration as an Investment in Human Capital Application: Indentured Servitude Selection on Skill Effects of Immigration in the Short Run and Long Run Application: Mariel Boatlift 8. Discrimination 8.1 Measuring Wage Gaps Wage Gaps by Sex, Race, and Ethnicity Standardized Comparison Accounting for Changes in Wage Gaps Wage Gaps by Sex Across Countries Wages and the Sex and Race Compositions of Occupations 8.2 Identifying the Effects of Discrimination Omitted Skill Variables Control Group of Nondiscriminators Test Scores and the Long Shadow of Discrimination in Childhood Discrimination in Hiring: Audit Studies and Blind Auditions Career Wage Ratios and Family Demands 8.3 Modeling Discrimination Employer Discrimination Employee Discrimination Customer Discrimination Monopsony Discrimination Statistical Discrimination 8.4 Can Discrimination Survive in the Long Run? Paying a Price to Discriminate Institutionalized Discrimination 8.5 U.

S. Anti-Discrimination Policy 9. Unions 9.1 Historical Context Union Membership Union Wage Premium 9.2 Models of Unions Union Bargaining with a Monopsony Employer Monopoly Union Efficient-Contracting Union 9.3 Applications Comparing Union Models Recipe for a Successful Monopoly Union Effects of Unions on Nonunion Wages 10. Wage Inequality 10.1 Measuring the Distribution of Wages Dispersion Asymmetry Application: Wage Inequality Across Occupations 10.

2 Economic Models of Wage Inequality Ability Schooling Job Assignment in Hierarchies Superstars 10.3 Application: Increasing Wage Inequality Increasing Return to Skills Skill-Biased Innovations and the Baby Boomers International Trade and Immigration Institutions Part Three 11. Compensation Strategies 11.1 Introduction to Compensation Production Environment Efficient Effort Self-Employment Profit Sharing and Shirking 11.2 Performance Pay Personal Performance Relative Performance Application: Self-Employment and Entrepreneurship 11.3 Efficiency Wage and the Threat of Dismissal Efficiency Wage Threat of Dismissal Application: Mandatory Retirement 11.4 Compensation of Chief Executive Officers Level of CEO Pay Sensitivity of CEO Pay to Firm Performance Application: Personal Use of the Corporate Jet 12. Unemployment 12.

1 Disequilibrium Unemployment Minimum Wage and Efficiency Wage 12.2 Steady-State Unemployment Flows Between Labor-Market States Distribution of Lengths of Spells of Unemployment 12.3 Job Search Reservation Wage Career Jobs, Low Interest Rates, and Being Well-Connected 12.4 Applications Unemployment Insurance European Unemployment 12.5 Unemployment in the Macroeconomy Inflation and Unemployment Phillips Curves in a Model of Aggregate Fluctuations Job Vacancies and Unemployment Answers to the Practice Questions Glossary Index.