Labor and the Economy

ContentsPreface 1. Labor and the Economy Aims of the Book Recent History of Labor Economics Labor Economics after World War II: The High Wage Economy The 1960s The 1970s Labor Economics Today Plan of the Book 2. The Labor Force and the Economy Labor Markets and the Economy The Labor Force Unemployment Demographic Composition of the Labor Force The Changing Structure of Employment in the American Economy Union Membership Summary Part I Labor and the Microeconomy A. Theory of Wages 3. Wage Theory: Labor Demand Neoclassical Wage Theory: A First Glimpse The General Nature of Labor Supply and Demand Demand for Labor in the Firm: Initial Observations Combining Labor with Capital: The Law of Diminishing Returns The Marginal Product of Labor The Firm's Demand for Labor: Technology and Product Markets The Level of Employment in the Firm The Marginal Revenue Products and Salaries of Professional Basketball Players Wage Changes and Employment Changes: The Elasticity of Demand for Labor Applications of the Elasticity of Labor Demand Changes in the Demand for Labor Summary Study Questions Further Reading 4. Wage Theory: Labor Supply Labor Supply: Hours of Work The Wage and Hours of Work Labor Time Supplied to the Market by the Household Income and Substitution Effects in the Household's Labor Supply Decision Perspective on the Backward-Bending Supply Segment Hours of Work in the American Economy Elasticity of Labor Supply Income Maintenance Experiments and Labor Supply Labor Force Participation Rates The Quality of Labor Supply: Human Capital Summary Study Questions Further Reading Appendix: The Income and Substitution Effects and Household Labor Supply 5. Wage Determination and Market Structure Wage Determination in Perfectly Competitive Markets The Cambridge Critique: Heterogeneity in the Labor Market Wage Determination in a Perfectly Competitive Labor Market Observation and Interpretation: Wage Determination in Perfect Competition Imperfect Competition and Wage-Employment Determination Oligopoly and Wage-Employment Determination Monopsony and Wage-Employment Determination Monopsony and the Minimum Wage Market Structure and Wage-Employment Determination Summary Study Questions Further Reading 6. Trade Unions and Wage Determination Trade Union Membership in the United States The Trade Union and Its Goals Institutional Theory and Wage Determination The Trade Union as an Economic Institution Bargaining Model of Wage Determination Collective Bargaining and Wage Determination Summary Study Questions Further Reading 7. The Impact of Trade Unions on Wages Methodological Problems Wage Differentials for Union and Nonunion Workers over Time The Impact of Trade Unions on Wages at a Fixed Point in Time The Magnitude of Trade Union Impacts on Wages The Spillover Effect and Pattern Bargaining Summary Study Questions Further Reading B. Labor Markets and Individual Incomes 8. Poverty and Inequality in the American economy Poverty: Meaning and Measurement Counting the Poor The Incidence of Poverty Critics of the Official Poverty Measure Inequality in Income and Wealth Some Observations on the Distribution of Wealth and Income Summary Study Questions Further Reading 9. The Functional Distribution of Income Labor and Capital Shares of the National Income Income Inequality and the Functional Distribution of Income Neoclassical Theory of the Functional Distribution of Income The Elasticity of Substitution Monopoly Power and the Functional Distribution of Income The Functional Distribution of Income over the Business Cycle Summary Study Questions Further Reading 10. Theory of Human Capital Investment in Human Capital Individual Investment in Human Capital Human Capital Investment by the Firm Public Investment in Human Capital Investment in Human Capital and Individual Incomes Summary Study Questions Further Reading 11. Labor Market Structures Structural Perspective on Poverty and Inequality The Relationship between Poverty and Work The Structure of Labor Markets and the Working Poor Employment at Low Wages Dual Labor Markets and Poverty Policy Implications of Labor Market Structure Theories Summary Study Questions Further Reading 12. The Economics of Discrimination Racial Inequalities Sex Inequalities Income Inequalities and Educational Inequalities Theories of Discrimination Public Policy and Economic Discrimination Summary Study Questions Further Reading Part II. Labor and the Macroeconomy 13. Unemployment: Meaning and Measurement The Labor Force in the American Economy Measuring Unemployment Alternative Measures of Unemployment Measuring the Severity of Unemployment Unemployment Flows Summary Study Questions Further Reading 14. Unemployment: Causes and Policy Responses Neoclassical Theory of Unemployment Job-Search Theories of Unemployment The Natural Rate of Unemployment Keynesian Aggregate Demand Theories of Unemployment Theory of Structural Unemployment Dual-Labor-Market Theory of Unemployment Explanations of Unemployment: An Assessment Summary Study Questions Further Reading 15. Inflation: Meaning and Measurement Measuring Inflation The Consumer Price Index since 1929 Inflation and Income Distribution Inflation and the Standard of Living of the American Worker Inflation, Productivity, and Unit Labor Costs Critique of the Way Inflation Is Measured Summary Study Questions Further Reading 16. Inflation: Causes and Policy Responses Excess Demand Inflation Cost-Push Inflation The Phillips Curve: Inflation-Unemployment Trade-off Summary Study Questions Further Reading 17. Stagflation The Anatomy of Stagflation Theory of Stagflation: Markup Pricing and Target Rates of Return Stagflation and the Structure of the Labor Market Expectations and Stagflation Stagflation Policy Summary Study Questions Further Reading 18. Wage-Price Policy The Kennedy Guideposts Nixon's New Economic Policy The Carter Years Wage-Price Policies in the 1980s Lessons from Our Experience with Wage-Price Policies Summary Study Questions Further Reading Part III. Labor and Economic Institutions 19. The Evolution of American Unions Institutional Premise of Neoclassical Marginal Productivity Theory Prerevolutionary Conditions of Work The Emerging Economy: Labor from the Revolution to the Civil War The End of the Age of Innocence: Civil War to the American Federation of Labor The Rise of Industrial Unionism: From 1900 to the Founding of the CIO The Emergence of the CIO: 1935-1955 The Merged AFL-CIO: 1956 to the Present The History of Work Summary Study Questions Further Reading 20. Industrial Relations in the United States The Nature of an Industrial Relations System How Trade Unions Gain Recognition The Collective Bargaining Process The Content of Collective Bargaining Agreements Summary Study Questions Further Reading 21. Industrial Relations Law The Conspiracy Doctrine: 1806-1880 The Injunction: 1880-1930 Trade Unions and Congressional Antitrust Law The New Deal Period Taft-Hartley Act Landrum-Griffin Act Labor Law Reform Summary Study Questions Further Reading 22. The Future of Industrial Relations Concession Bargaining Robotization Unions and Investments of Pension Funds Public Employee Unionization The Davis-Bacon Act Summary Study Questions Further Reading Part IV. Labor and Public Policy 23. Minimum Wages Minimum Wage Laws in the United States Characteristics of Minimum Wage Workers Wage Theory and Minimum Wages: Perfect Competition Wage Theory and Minimum Wages: Monopsony Minimum Wages and Youth Unemployment Public Policy and the Minimum Wage: Youth Subminimum Public Policy and the Minimum Wage: Indexation Summary Study Questions Further Reading 24. Income Security, Health, and Safety Social Security Unemployment Compensation Workers' Compensation Black Lung Disease Occupational Safety and Health Act Summary Study Questions Further Reading Index