The Handbook brings together a systematic review of the research topics, empirical findings, and methods that comprise modern labor economics. It serves as an introduction to what has been done in this field, while at the same time indicating possible future trends which will be important in both spheres of public and private decision-making.
Part 1 is concerned with the classic topics of labor supply and demand, the size and nature of the elasticities between the two, and their impact on the wage structure. This analysis touches on two fundamental questions: what are the sources of income inequality, and what are the disincentive effects of attempts to produce a more equal income distribution?
The papers in Part II proceed from the common observation that the dissimilarity in worker skills and employer demands often tempers the outcomes that would be expected in frictionless labor markets. And the last
section of the Handbook deals explicitly with the role of institutional structures (e.g. trade unions) that now form an important part of modern labor economics.
The quality of the papers of this volume is uniformly high. The editorial objectives have been achieved, and I expect that this handbook will become the standard reference work for many of the most important areas of labour economics. The Economic Journal The two very substantial and thorough volumes of this handbook together present a comprehensive survey of the state of the art in labour economics. The first volume deals with the supply of and demand for labour as well as problems of the wage structure; the second volume treats equilibrium, friction and institutional structures of the labour market. International Review of Social History