Chapter 1 Introduction
The Labor Market
Labor Economics: Some Basic Concepts
Plan of the Text
Appendix 1A Statistical Testing of Labor Market Hypotheses
Chapter 2 Overview of the Labor Market
The Labor Market: Definitions, Facts, and Trends
How the Labor Market Works
Applications of the Theory
Chapter 3 The Demand for Labor
Profit Maximization
The Short-Run Demand for Labor When Both Product and Labor Markets
Are Competitive
The Demand for Labor in Competitive Markets When Other Inputs Can
Be Varied
Labor Demand When the Product Market Is Not Competitive
Policy Application: The Labor Market Effects of Employer Payroll
Taxes and Wage Subsidies
Appendix 3A Graphical Derivation of a Firm’s Labor Demand Curve
Chapter 4 Labor Demand Elasticities
The Own-Wage Elasticity of Demand
The Cross-Wage Elasticity of Demand
Policy Application: Effects of Minimum Wage Laws
Applying Concepts of Labor Demand Elasticity to the Issue of
Technological Change
Chapter 5 Frictions in the Labor Market
Frictions on the Employee Side of the Market
Frictions on the Employer Side of the Market
Training Investments
Hiring Investments
Chapter 6 Supply of Labor to the Economy: The Decision to
Work
Trends in Labor Force Participation and Hours of Work
A Theory of the Decision to Work
Policy Applications
Chapter 7 Labor Supply: Household Production, the Family, and
the Life Cycle
The Theory of Household Production
A Labor Supply Model that Incorporates Household Production
Joint Labor Supply Decisions within the Household
Life-Cycle Aspects of Labor Supply
Chapter 8 Compensating Wage Differentials and Labor
Markets
Job Matching: The Role of Worker Preferences and Information
Hedonic Wage Theory and the Risk of Injury
Hedonic Wage Theory and Employee Benefits
Appendix 8A Compensating Wage Differentials and Layoffs
Chapter 9 Investments in Human Capital: Education and
Training
Human Capital Investments: The Basic Model
The Demand for a College Education
Education, Earnings, and Post-schooling Investments in Human
Capital
Is Education a Good Investment?
Appendix 9A A “Cobweb” Model of Labor Market Adjustment
Appendix 9B: A Hedonic Model of Earnings and Educational Level (Now
available exclusively on the Companion Website)
Chapter 10 Worker Mobility: Migration, Immigration, and
Turnover
The Determinants of Worker Mobility
Geographic Mobility
Policy Application: Restricting Immigration
Employee Turnover
Chapter 11 Pay and Productivity: Wage Determination Within the
Firm
Motivating Workers: An Overview of the Fundamentals
Productivity and the Basis of Yearly Pay
Productivity and the Level of Pay
Productivity and the Sequencing of Pay
Applications of the Theory: Explaining Two Puzzles
Chapter 12 Gender, Race, and Ethnicity in the Labor
Market
Measured and Unmeasured Sources of Earnings Differences
Theories of Market Discrimination
Federal Programs to End Discrimination
Appendix 12A Estimating Comparable-Worth Earnings Gaps: An
Application of Regression Analysis
Chapter 13 Unions and the Labor Market
Union Structure and Membership
Constraints on the Achievement of Union Objectives
The Activities and Tools of Collective Bargaining
The Effects of Unions
Appendix 13A Arbitration and the Bargaining Contract Zone
Chapter 14 Unemployment
A Stock-Flow Model of the Labor Market
Frictional Unemployment
Structural Unemployment
Demand-Deficient (Cyclical) Unemployment
Seasonal Unemployment
When Do We Have Full Employment?
Chapter 15 Inequality in Earnings
Measuring Inequality
Earnings Inequality Since 1980: Some Descriptive Data
The Underlying Causes of Growing Inequality
Appendix 15A Lorenz Curves and Gini Coefficients
Chapter 16 The Labor Market Effects of International Trade and
Production Sharing
Why Does Trade Take Place?
Effects of Trade on the Demand for Labor
Will Wages Converge Across Countries?
Policy Issues
Ronald G. Ehrenberg is the Irving M. Ives Professor of
Industrial and Labor Relations and Economics at Cornell University
and a Stephen H. Weiss Presidential Fellow. He is also Director of
the Cornell Higher Education Research Institute. Ehrenberg received
a BA in mathematics from Harpur College (SUNY Binghamton) in 1966
and a PhD in economics from Northwestern University in 1970. As a
member of the Cornell faculty for 32 years, he has authored or
co-authored over 120 papers, and authored or edited 20 books. He
was the founding editor of Research in Labor Economics, and served
a ten-year term as co-editor of the Journal of Human Resources. He
has been a member of several editorial boards and a consultant to
numerous governmental agencies and commissions, as well as numerous
universities and private research corporations.
His recent research has focused on higher education issues.
Ehrenberg has supervised the dissertations of thirty-nine PhD
students and served on committees for countless more. He is also
passionate about undergraduate education, involves undergraduate
students in his research, and has co-authored papers with a number
of these undergraduates. In 2003, ILR-Cornell awarded him the
General Mills Foundation Award for Exemplary Undergraduate
Teaching. In 2005, he was named a Stephen H. Weiss Presidential
Fellow, the highest award for undergraduate teaching that exists at
Cornell.
Ehrenberg has served as a consultant to faculty and administrative
groups as well as to trustees at a number of colleges and
universities on issues relating to tuition and financial aid
policies, faculty compensation policies, faculty retirement
policies, and other budgetary, planning, and academic issues. Among
the institutions he has worked with are Brandeis University,
Oberlin College, Northeastern University, the University of North
Carolina, the University of Chicago, Vanderbilt University, the
U.S. Naval Academy, the National Technical Institute for the Deaf
at the Rochester Institute of Technology, Smith College, the
Suffolk University Law School, and Albany University (SUNY).
Robert S. Smith, the Associate Dean for Academic Affairs in
the School of Industrial and Labor Relations at Cornell University,
is also a professor in the school's Labor Economics Department.
After receiving his PhD in Economics at Stanford University in
1971, he taught at the University of Connecticut and worked as an
economist in the U.S. Department of Labor before coming to Cornell
in 1974. He has authored numerous articles in the field of labor
economics.
Professor Smith's research interests have centered on analyses of
various labor market policies, especially those in the safety and
health area. Most recently, he has served as co-principal
investigator in the evaluation of the effects of two pilot programs
in New York’s workers’ compensation program: one in the use of
managed care and one in the use of alternative dispute resolution
structures.
Professor Smith’s teaching has included the basic required labor
economics courses for undergraduates and for students in the
school’s professional master’s program. In 1999 he received the
school’s General Mills Foundation Award for Innovation in
Instruction.
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