The Economics Of Labor Markets with Infotrac

by Kaufman, Bruce E.; Hotchkiss, Julie L.

• ISBN13: 9780324288797
• ISBN10: 0324288794
• Edition: 7th
• Format: Hardcover
• Copyright: 2005-07-19
• Publisher: Cengage Learning

Summary

Widely regarded as the best, most comprehensive text available for the in-depth study of labor market theories, the text calls uponexcellent pedagogical elements and empirical research to introduce students to labor economics. The authors' balanced approach to thematerial enables students to gain an understanding of the background of the field as they explore its latest developments and uniquetopics not covered in most competing texts.

Table of Contents

Preface	xvii
About the Authors	xxiii
The Labor Market	1	(43)
The Labor Market and the Economy	1	(3)
Unique Features of the Labor Market	4	(3)
Labor Is Embodied in the Seller	4	(1)
The Long-Term Nature of the Employment Relationship	5	(1)
Heterogeneity of Workers and Jobs	6	(1)
The Multiplicity of Markets	7	(1)
Labor Market Outcomes	7	(8)
The Changing Level and Composition of Labor Supply	8	(1)
The Changing Level and Composition of Labor Demand	8	(3)
The Structure of Earnings	11	(1)
Labor-Management Relations and Collective Bargaining	12	(2)
Changes in the Level and Composition of Unemployment	14	(1)
The Labor Market Process	15	(11)
Market Forces	15	(5)
Institutional Forces	20	(2)
Sociological Forces	22	(4)
The Evolution of Labor Market Theory	26	(9)
The Neoclassical School	27	(4)
The Institutional School	31	(3)
Modern Labor Economics: A Pragmatic Blend?	34	(1)
The Importance of Theory and Hypothesis Testing	35	(3)
In the News Different Views on the Merits of Ergonomics Standards	36	(2)
The Importance of Theory for Public Policy	38	(4)
Empirical Evidence 1-1 The Market for Teachers: 1971--2001	40	(2)
Summary	42	(1)
Review Questions	42	(2)
Hours of Work	44	(70)
The Pattern of Hours of Work	44	(2)
The Theory of the Labor/Leisure Choice	46	(16)
Preferences and Indifference Curves	47	(4)
Wages, Income, and the Budget Constraint	51	(3)
The Equilibrium Hours of Work	54	(1)
Hours of Work and Changes in Nonlabor Income	55	(2)
Hours of Work and Changes in the Wage Rate	57	(3)
A Graphic Derivation of Income and Substitution Effects	60	(1)
The Supply Curve of Labor	61	(1)
Income Maintenance Programs and Labor Supply	62	(9)
Types of Income Transfer Programs	63	(1)
TANF: The Successor to AFDC	63	(2)
TANF and Hours of Work	65	(3)
In the News Welfare Reform: Success with Trouble Spots	68	(2)
Issues in Welfare Reform	70	(1)
Qualifications to the Labor/Leisure Model	71	(8)
Employer-Mandated Work Schedules	71	(4)
In the News Work Hour Differences between the United States and Europe: Economic, Legal, or Cultural Explanations?	75	(1)
Time and Money Costs of Working	76	(3)
The Time-Series Pattern of Hours of Work	79	(15)
The Process of Hours Reduction	81	(2)
The Slower Decline of Work Hours in the Postwar Period	83	(2)
The Recent Increase in Work Hours	85	(2)
Policy Application 2-1 Supply-Side Economics and Labor Supply	87	(4)
Empirical Evidence 2-1 Labor Supply Curves Estimated from Cross-Sectional Data	91	(3)
Summary	94	(1)
Review Questions	95	(19)
Appendix 2A The Hours of Work Decision for Salaried Workers	97	(6)
Appendix 2B Constrained Optimization and the Labor/Leisure Choice Model	103	(4)
Appendix 2C Estimating a Labor Supply Curve with Linear Regression	107	(7)
Labor Force Participation	114	(58)
Definition and Measurement of the Labor Force	114	(4)
In the News The Work Force in the Twenty-First Century: The Challenge Facing Employers	117	(1)
Patterns in Labor Force Participation	118	(1)
The Decision to Work	119	(5)
Participation and Changes in the Market Wage Rate	121	(1)
Participation and Changes in Nonlabor Income	122	(2)
A Household Model of Labor Supply	124	(6)
The Division of Labor by Gender	127	(1)
The Convergence in Participation Rates	128	(1)
Time Allocation: An Extension to the Household Model	129	(1)
Changes in Participation over Time	130	(20)
The Decline in Male Participation Rates	131	(7)
The Increase in Female Participation Rates	138	(10)
In the News Exit the Baby Boomers: Good News and Bad News for the Baby Busters	148	(2)
A Bargaining Model of Family Labor Supply	150	(13)
Policy Application 3-1 The Earned Income Tax Credit: A Way to Help the Poor and Encourage Labor Force Participation?	153	(3)
Policy Application 3-2 Labor Force Growth during Recessions	156	(3)
Empirical Evidence 3-1 Age/Participation Profiles	159	(4)
Summary	163	(1)
Review Questions	163	(9)
Appendix 3A The Allocation of Time to Market Work, Home Work, and Leisure: A Graphic Exposition	165	(5)
Appendix 3B Constrained Optimization and the Participation Decision	170	(2)
The Demand for Labor in the Short Run	172	(47)
The Pattern of Employment	173	(1)
The Marginal Productivity Theory of Labor Demand	174	(17)
The Model	175	(5)
The Short-Run Demand Curve for Labor	180	(4)
The Market Demand Curve for Labor	184	(1)
Criticisms of the Theory of Labor Demand	185	(1)
In the News Rise in Benefit Costs Leads to Job Growth Slowdown	186	(5)
The Elasticity of Demand for Labor	191	(6)
Special Relationships	193	(2)
Estimates of the Elasticity of Labor Demand	195	(2)
The Relationship between Product Demand and Labor Demand	197	(19)
The Demand for Labor over the Business Cycle	197	(3)
In the News Worries about Middle Class Jobs and Upward Economic Mobility	200	(4)
Consumer Expenditure Patterns and the Demand for Labor	204	(1)
Policy Application 4-1 Wage Subsidy Programs	205	(4)
Policy Application 4-2 Globalization and the Demand for Labor	209	(5)
Empirical Evidence 4-1 The Motivation behind Union Wage Concessions	214	(2)
Summary	216	(1)
Review Questions	216	(3)
Appendix 4A The Short-Run Equilibrium Level of Employment	218	(1)
The Demand for Labor in the Long Run	219	(41)
The Pattern of Capital/Labor Substitution	219	(2)
The Theory of Labor Demand in the Long Run	221	(11)
The Technology of Production: Isoquants	221	(3)
Factor Prices: Isocost Lines	224	(2)
The Equilibrium Level of Employment	226	(2)
A Change in the Wage Rate	228	(2)
The Long-Run Demand Curve for Labor	230	(2)
The Determinants of the Elasticity of Labor Demand	232	(4)
Demand for the Final Product	232	(1)
The Share of Labor in Total Cost	233	(1)
Substitutability of Other Factor Inputs	234	(2)
The Elasticity of Supply of Other Factor Inputs	236	(1)
Technological Change and Labor Demand	236	(9)
The Displacement of Labor by Technological Change	237	(2)
Technological Change and Product Demand	239	(1)
The Combined Effect	240	(2)
In the News How American Manufacturers Survive the Low-Wage Global Challenge	242	(3)
Productivity Growth and the Demand for Labor	245	(10)
Policy Application 5-1 Employment Forecasting	246	(4)
Policy Application 5-2 Displaced Workers	250	(2)
Empirical Evidence 5-1 Productivity Growth and Employment in Agriculture and Telephone Communication	252	(3)
Summary	255	(1)
Review Questions	255	(5)
Appendix 5A The Long-Run Equilibrium Level of Employment	257	(3)
The Determination of Wages	260	(66)
The Pattern of Wages	260	(3)
Wage Determination in Competitive Markets	263	(11)
The Law of One Wage	263	(2)
The Law of One Wage Put to the Test: Secretaries	265	(2)
Market Imperfections	267	(5)
A More Realistic Model	272	(2)
Wage Determination in a Monopsony Market	274	(4)
The Marginal Cost of Labor Schedule	277	(1)
The Equilibrium Level of Wages and Employment	278	(1)
The Process of Market Adjustment	278	(3)
Excess Demand	280	(1)
Excess Supply	280	(1)
Market Adjustment and the Minimum Wage	281	(14)
History of the Minimum Wage	281	(1)
Purpose of the Minimum Wage	282	(1)
The Minimum Wage in a Perfectly Competitive Market	283	(3)
In the News A Living Wage	286	(1)
The Minimum Wage in a Monopsony Market	287	(2)
The Minimum Wage and Efficiency Wage Theory	289	(1)
Research Findings	290	(5)
The Firm's Internal Wage Structure	295	(5)
Segmentation and Dual Labor Market Theory	300	(17)
Primary and Secondary Jobs	301	(1)
Limited Mobility	301	(1)
In the News Are Firms Developing Two-Tier Workforces?	302	(1)
Implications and Evidence	303	(2)
Policy Application 6-1 Job Lock	305	(2)
Empirical Evidence 6-1 Monopsony in Baseball	307	(1)
Empirical Evidence 6-2 Wages of Hospital and Manufacturing Workers	307	(6)
Empirical Evidence 6-3 The Wage Effect of Immigration	313	(4)
Summary	317	(1)
Review Questions	317	(9)
Appendix 6A Data, Reference, and Internet Sources in Labor Economics	319	(7)
Education, Training, and Earnings Differentials: The Theory of Human Capital	326	(61)
The Pattern of Education and Earnings	326	(2)
The Theory of Human Capital	328	(12)
The Investment Decision	329	(4)
The Private and Social Rate of Return	333	(2)
Implications of Human Capital Theory	335	(4)
In the News College Graduates: Too Many or Too Few?	339	(1)
Schooling and the Distribution of Individual Earnings	340	(11)
The Market for Human Capital	340	(5)
The Distribution of Earnings	345	(6)
Human Capital versus Screening	351	(3)
On-the-Job Training	354	(26)
General versus Specific Training	355	(1)
In the News The German Apprenticeship Program: A Model for the United States?	356	(1)
Benefits and Costs of On-the-Job Training	356	(4)
In the News General OJT: When the Employer Pays	360	(1)
Implications of On-the-Job Training	361	(4)
Alternative Explanations	365	(4)
Policy Application 7-1 Interrupted Work Careers and Women's Earnings	369	(4)
Empirical Evidence 7-1 Estimated Rates of Return to Formal Education	373	(1)
Empirical Evidence 7-2 Schooling and Earnings	374	(6)
Summary	380	(1)
Review Questions	381	(6)
Appendix 7A Estimating a Human Capital Earnings Function	382	(5)
Occupational Wage Differentials	387	(60)
The Pattern of Occupational Earnings	387	(3)
Compensating Wage Differentials	390	(24)
Job Attributes	390	(7)
The Hedonic Theory of Compensating Wage Differentials	397	(6)
The Economics of Employee Benefits	403	(7)
In the News Flexible Benefit Plans Grow in Popularity among Both Workers and Employers	410	(4)
Occupational Licensing	414	(5)
Who Is Licensed?	415	(1)
The Benefits and Costs of Licensing	415	(2)
Occupational Licensing as a Source of Monopoly Rents	417	(2)
Occupational Attainment and Earnings of Men and Women	419	(21)
Gender Differences in Occupational Attainment	419	(3)
Reasons for Occupational Segregation	422	(6)
In the News Why More Women Managers and Executives Are Putting Their Careers on Hold	428	(2)
Policy Application 8-1 Government Regulation of Occupational Safety and Health	430	(6)
Empirical Evidence 8-1 Compensation for Reputation	436	(2)
Empirical Evidence 8-2 Occupational Segregation and Male/Female Earnings Differentials	438	(2)
Summary	440	(1)
Review Questions	441	(6)
Appendix 8A Measuring Occupational Segregation---The Duncan Index	442	(5)
Discrimination in the Labor Market	447	(58)
The Pattern of Earnings Differentials by Race and Gender	447	(2)
Theories of Market Discrimination	449	(17)
Personal Prejudice	450	(8)
Market Power	458	(3)
Imperfect Information	461	(4)
In the News The Young and the Beautiful	465	(1)
Discrimination and Life Cycle Earnings	466	(9)
Discrimination in Training	466	(2)
Discrimination in Promotion	468	(6)
Discrimination and Labor Market Choices	474	(1)
The Measurement of Discrimination	475	(5)
The Residual Method	475	(3)
Estimates of Discrimination	478	(1)
Sources of Bias	479	(1)
The Economic Progress of Blacks and Women	480	(7)
Blacks	481	(2)
Women	483	(1)
In the News The ``Mommy Track'': Fair or Unfair to Women?	484	(3)
Government Programs to Combat Discrimination	487	(15)
Federal Legislation	487	(4)
Effectiveness of Antidiscrimination Programs	491	(1)
In the News Discrimination and Sexual Orientation: The United Kingdom and United States Take Different Paths	492	(3)
Policy Application 9-1 Comparable Worth	495	(3)
In the News Canada's Experience with Comparable Worth	498	(2)
Empirical Evidence 9-1 Discrimination in Full-Time Compensation	500	(2)
Summary	502	(1)
Review Questions	502	(3)
Appendix 9A The Measurement of Discrimination	504	(1)
The Economics of Human Resource Management	505	(53)
The Pattern of HRM Practice	505	(1)
The Economic Basis of the Employment Relationship	506	(5)
The Firm's Demand for HRM Services	511	(7)
In the News Make or Buy HRM Services?	512	(5)
The Equilibrium Level of Several HRM Inputs	517	(1)
Strategic HRM	517	(1)
Issues in Employee Selection	518	(7)
The Employee Selection Process	519	(1)
Employee Selection: An Economic Model	520	(5)
Issues in Compensation Management	525	(9)
Pay Level	526	(4)
Pay Form	530	(4)
Issues in Employee Involvement and Participation	534	(21)
Direct Forms of Employee Participation	536	(1)
Indirect Forms of Employee Participation	537	(1)
The Benefits of EIP	538	(2)
The Costs of EIP	540	(2)
The Equilibrium Level of EIP	542	(1)
Policy Application 10-1 The Employee Participation/Representation Gap: How Large Is It and How Do We Solve It?	542	(6)
Empirical Evidence 10-1 The Configuration of Alternative Employment and HRM Systems	548	(3)
Empirical Evidence 10-2 The Link between HRM Practices and Firm Performance	551	(1)
Empirical Evidence 10-3 Executive Compensation: Pay for Performance or Skimming the Cream?	552	(3)
Summary	555	(1)
Review Questions	556	(2)
Union Membership and Collective Bargaining	558	(68)
The Pattern of Union Membership	558	(2)
The Origins of Labor Unions	560	(4)
The Divorce of Capital and Labor	560	(1)
Employers and Workers: Adversaries or Partners?	561	(2)
Individual Action versus Collective Action	563	(1)
The Determinants of Union Membership: A Demand and Supply Model	564	(32)
The Demand for Union Services	565	(5)
In the News The Jungle---One Hundred Years Later	570	(2)
The Supply Curve of Union Services	572	(3)
The Equilibrium Level of Union Membership	575	(1)
Union Membership over Time	576	(5)
The Union--Management Bargaining Process	581	(2)
A Model of the Bargaining Process	583	(5)
Bargaining Power	588	(2)
Outcomes of the Bargaining Process	590	(6)
Alternative Methods of Dispute Resolution	596	(18)
Mediation	596	(1)
Fact-Finding	597	(1)
Arbitration	597	(2)
Policy Application 11-1 The Legal Framework of Collective Bargaining	599	(5)
Empirical Evidence 11-1 Who Belongs to Unions	604	(5)
Empirical Evidence 11-2 The Pattern of Strike Activity	609	(3)
In the News Factors behind the Drop in Strikes	612	(2)
Summary	614	(1)
Review Questions	615	(11)
Appendix 11A A Comparison of Monopoly, Efficient Contract, and Median Voter Models of Union Wage Determination	616	(10)
The Economic Impact of Unions	626	(40)
Do Unions Raise Wages?	626	(2)
Measuring the Union-Nonunion Wage Differential	628	(4)
The Problem of Other Things Equal	628	(2)
The Problem of Mutual Interdependence	630	(2)
Five Dimensions of the Union Wage Effect	632	(13)
Percentage of the Workforce Organized	632	(2)
The Union Wage Effect over Time	634	(3)
The Union Wage Effect and the Structure of the Product Market	637	(3)
In the News German Unions Feeling the Pain of Economic Integration	640	(1)
Unions and Wage Inequality	641	(2)
The Union Wage Effect in the Public Sector	643	(2)
The Union Effect on Nonwage Outcomes	645	(14)
Unions and Employee Benefits	645	(1)
In the News The Crisis in Union Health and Pension Programs	646	(2)
Unions and Productivity	648	(3)
Unions and Profits	651	(1)
Policy Application 12-1 The Davis-Bacon Act	652	(1)
Empirical Evidence 12-1 Estimates of the Union Wage Effect	653	(6)
Summary	659	(1)
Review Questions	660	(6)
Appendix 12A Estimating Union-Nonunion Wage Differentials	661	(5)
Unemployment	666	(47)
The Pattern of Unemployment	666	(1)
Why Worry about the Unemployment Rate?	667	(2)
The Measurement of Unemployment	669	(3)
Types of Unemployment	672	(8)
Frictional Unemployment	672	(2)
Structural Unemployment	674	(1)
Cyclical Unemployment	675	(1)
Distinguishing between Types of Unemployment	675	(1)
In the News How Many Jobs Are Enough to Keep Unemployment in Check?	676	(4)
Causes of Unemployment	680	(12)
Job Search	680	(6)
Rigid Wages	686	(4)
Efficiency Wages	690	(2)
The Composition of Unemployment	692	(14)
Unemployment Flows	694	(1)
Two Sources of High Unemployment Rates	695	(3)
Policy Application 13-1 Government Employment and Training Programs	698	(2)
In the News If You Pay, They Will Come . . . Maybe	700	(3)
Empirical Evidence 13-1 The Beveridge Curve in the United States	703	(3)
Summary	706	(1)
Review Questions	707	(6)
Appendix 13A International Unemployment Statistics	708	(5)
Glossary	713	(10)
Name Index	723	(10)
Subject Index	733