Contents	6
	List of tables	8
	Acknowledgements	12
	Introduction	14
	1 Labour supply	19
	INTRODUCTION	19
	INDIVIDUAL LABOUR SUPPLY	20
	WELFARE BENEFITS AND LABOUR SUPPLY	22
	INCOME TAX AND LABOUR SUPPLY	24
	TAX AND BENEFIT POLICY AND LABOUR SUPPLY	27
	HOUSEHOLD LABOUR SUPPLY	28
	AGGREGATE LABOUR SUPPLY	34
	MACRO LABOUR SUPPLY TRENDS	35
	LABOUR SUPPLY AND UNEMPLOYMENT	49
	LABOUR SUPPLY – QUESTIONS FOR DISCUSSION	51
	SELECTED READINGS	52
	APPENDIX – GLOSSARY OF TERMS	52
	2 Labour demand and productivity	53
	INTRODUCTION	53
	MICROECONOMIC ANALYSIS OF LABOUR DEMAND	54
	EMPIRICAL ASPECTS OF LABOUR DEMAND	59
	DYNAMIC LABOUR DEMAND	61
	AGGREGATE LABOUR DEMAND	64
	PRODUCTIVITY	70
	LABOUR DEMAND AND PRODUCTIVITY – QUESTIONS FOR DISCUSSION	83
	SELECTED READINGS	83
	3 Wage determination and inequality	84
	INTRODUCTION	84
	THE SIMPLE LABOUR MARKET	84
	THE LABOUR MARKET AND THE PRODUCT MARKET	86
	COMPENSATING WAGE DIFFERENTIALS	88
	WAGE INEQUALITY	92
	MINIMUM WAGE	104
	QUESTIONS FOR DISCUSSION	110
	SUGGESTED READING	111
	4 Personnel economics	112
	INTRODUCTION	112
	PRINCIPALS AND AGENTS	112
	CONTRACTS	113
	IMPLICIT CONTRACT THEORY	114
	INTERNAL LABOUR MARKETS	115
	PROMOTION	122
	FRINGE BENEFITS	124
	PERFORMANCE RELATED PAY	126
	EFFICIENCY WAGES	128
	PERSONNEL ECONOMICS – QUESTIONS FOR DISCUSSION	131
	SUGGESTED READING	131
	5 Human capital	132
	INTRODUCTION	132
	THE BASIC MODEL	133
	EMPIRICAL ASPECTS	142
	SCREENING, SIGNALLING, AGENCY THEORY AND OTHER CRITICISMS OF HUMAN CAPITAL THEORY	149
	VOCATIONAL TRAINING	153
	COMPUTERS AND SKILLS	161
	SKILL-BIASED TECHNOLOGICAL CHANGE	163
	HUMAN CAPITAL AND GROWTH	166
	HUMAN CAPITAL – QUESTIONS FOR DISCUSSION	176
	SUGGESTED READING	177
	6 Labour market discrimination	178
	INTRODUCTION	178
	GENDER AND LABOUR MARKETS	179
	THE NEOCLASSICAL TASTE MODEL	181
	SEGMENTED LABOUR MARKETS	186
	SEGMENTED MARKETS APPROACH: A SUMMARY	189
	EMPIRICAL EVIDENCE OF DISCRIMINATION	190
	THE ECONOMICS OF COMPARABLE WORTH AND ANTI-SEX DISCRIMINATION LEGISLATION	197
	WOMEN AND CHILDREN	200
	RACIAL DISCRIMINATION	204
	CASE STUDY: DISABLED WORKERS	210
	DISCRIMINATION – SUMMARY	212
	DISCRIMINATION – QUESTIONS FOR DISCUSSION	213
	SUGGESTED READING	214
	7 Trade unions and labour markets	215
	INTRODUCTION	215
	UNION POWER: THE STATISTICAL PICTURE	216
	MODELS OF UNION BEHAVIOUR	223
	THE EMPIRICAL STATUS OF TRADE UNION MODELS	229
	Unbenannt	230
	THE ECONOMIC IMPACT OF UNION POWER	236
	INSIDER–OUTSIDER THEORY	247
	CASE STUDY – WORKING FOR THE UNION IN AUSTRALIA?	249
	UNIONS AND EQUALITY	252
	TRADE UNIONS – SUMMARY	254
	TRADE UNIONS – QUESTIONS FOR DISCUSSION	255
	SUGGESTED READING	256
	8 Labour market flexibility	257
	INTRODUCTION	257
	LABOUR MARKET FLEXIBILITY	257
	LABOUR MARKET POLICY	259
	ATYPICAL AND SELF-EMPLOYMENT	264
	LABOUR MARKET POLICY ASSESSED	271
	EUROPEAN MONETARY UNION AND LABOUR MARKET FLEXIBILITY	277
	WAGE FLEXIBILITY	279
	LABOUR MIGRATION	282
	CONCLUSIONS	290
	CASE STUDY – FLEXIBILITY AND NATIONAL CULTURE	292
	LABOUR MARKET FLEXIBILITY – SUMMARY	296
	LABOUR MARKET FLEXIBILITY – QUESTIONS FOR DISCUSSION	297
	SUGGESTED READING	297
	9 Job search and vacancy analysis	298
	INTRODUCTION	298
	SEARCH THEORY: A NUMERICAL EXAMPLE	299
	BENEFITS, SEARCH AND UNEMPLOYMENT IN THEORY	307
	UNEMPLOYMENT FLOWS AND JOB SEARCH	310
	THE EMPIRICAL STATUS OF JOB SEARCH	311
	AN EVALUATION OF SEARCH THEORY	316
	THE MATCHING FUNCTION	317
	VACANCIES: SOME BASIC FACTS	318
	UNEMPLOYMENT RATES AND VACANCY RATES	321
	THE THEORY OF THE BEVERIDGE ( U– V) CURVE	323
	EMPIRICAL STUDIES OF THE BEVERIDGE ( U– V) CURVE	327
	CASE STUDY – FORMAL AND INFORMAL JOB SEARCH IN CHICAGO	332
	JOB SEARCH AND VACANCIES- SUMMARY	335
	JOB SEARCH AND VACANCIES – QUESTIONS FOR DISCUSSION	336
	SUGGESTED READING	337
	10 Unemployment	338
	INTRODUCTION	338
	THE STATISTICAL PICTURE	339
	THEORIES OF UNEMPLOYMENT	350
	CLASSICAL THEORY	351
	KEYNESIAN THEORY	354
	THE PHILLIPS CURVE	356
	MONETARISM AND UNEMPLOYMENT	359
	NEW CLASSICAL ECONOMICS AND UNEMPLOYMENT	364
	A CRITIQUE OF THE NEW CLASSICAL VIEW	365
	THE NATURAL RATE OF UNEMPLOYMENT	367
	UNEMPLOYMENT HYSTERESIS	370
	STRUCTURAL UNEMPLOYMENT AND MISMATCH	374
	AN ECLECTIC THEORY OF UNEMPLOYMENT	377
	POLICIES TO CUT UNEMPLOYMENT	381
	CASE STUDY – EMU AND UNEMPLOYMENT	387
	UNEMPLOYMENT – SUMMARY	389
	UNEMPLOYMENT – QUESTIONS FOR DISCUSSION	391
	SUGGESTED READING	391
	11 Trade, globalisation and labour markets	392
	INTRODUCTION	392
	TRADE FLOWS	392
	GLOBALISATION	397
	THE EMERGENCE OF GLOBAL FINANCIAL MARKETS	398
	THE IMPACT OF GLOBALISATION ON LABOUR MARKETS	399
	DEINDUSTRIALISATION	402
	WEAK EXPLANATIONS OF DEINDUSTRIALISATION	403
	DEINDUSTRIALISATION AND TRADE SPECIALISATION	404
	CASE STUDY – GLOBALISATION, UNEMPLOYMENT AND CHINA	409
	DEINDUSTRIALISATION, TRADE AND EMPLOYMENT	412
	CONCLUDING REMARKS	414
	TRADE, GLOBALISATION AND LABOUR MARKETS – SUMMARY	417
	QUESTIONS FOR DISCUSSION	418
	Notes	419
	Bibliography	437
	Index	456
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