Modern Labor Economics: Theory and Public Policy, now in its fourteenth edition, continues to be the leading text for one-semester courses in labor economics at the undergraduate and graduate levels.
It offers a thorough overview of the modern theory of labor market behavior and reveals how this theory is used to analyze public policy. Designed for students who may not have extensive backgrounds in economics, the text balances theoretical coverage with examples of practical applications that allow students to see concepts in action.
The authors believe that showing students the social implications of the concepts discussed in the course will enhance their motivation to learn. Consequently, this text presents numerous examples of policy decisions that have been affected by the ever-shifting labor market.
This new edition continues to offer the following:
- a balance of relevant, contemporary examples
- coverage of the current economic climate
- an introduction to basic methodological techniques and problems
- tools for review and further study
This fourteenth edition presents updated data throughout and a wealth of new examples, such as the impact of COVID-19 lockdowns, gig work, nudges, monopsony power in the technology industry, and the effect of machine learning on inequality. Supplementary materials for students and instructors are available on the book’s companion website.
Table of Contents
2. Overview of the Labor Market
3. The Demand for Labor
4. Labor Demand Elasticities
5. Frictions in the Labor Market
6. Supply of Labor to the Economy: The Decision to Work
7. Labor Supply: Household Production, the Family, and the Life Cycle
8. Compensating Wage Differentials and Labor Markets
9. Investments in Human Capital: Education and Training
10. Worker Mobility: Migration, Immigration, and Turnover
11. Pay and Productivity: Wage Determination Within the Firm
12. Gender, Race, and Ethnicity in the Labor Market
13. Unions and the Labor Market
15. Inequality in Earnings
16. The Labor Market Effects of International Trade and Production Sharing
Ronald G. Ehrenberg is the Irving M. Ives professor of industrial and labor relations and economics at Cornell University. He has been honored for his teaching by receiving Cornell’s highest university-wide award: the Stephen H. Weiss Presidential Fellowship "for effective, inspiring, and distinguished teaching of undergraduate students and for outstanding contributions to undergraduate education."
Robert S. Smith is Professor of Economics at Cornell University. He has been honored for his teaching by receiving Cornell’s highest university-wide award: the Stephen H. Weiss Presidential Fellowship "for effective, inspiring, and distinguished teaching of undergraduate students and for outstanding contributions to undergraduate education."
Kevin F. Hallock is President and Professor of Economics at the University of Richmond. He previously served as Dean of the Cornell SC Johnson College of Business, Dean of School of Industrial and Labor relations, the Joseph R. Rich ’80 professor of economics and human resource studies, and Director of the Institute for Compensation Studies at Cornell University.
Praise for the thirteenth edition:
"Modern Labor Economics incorporates current policy issues while maintaining a strong focus on economic theory. The summaries of seminal academic works are indisputably important for bolstering student knowledge, and the inclusion of real-world applications makes the research far more comprehensible to a broader audience."
Tongzhe Li, University of Delaware, USA
"A classic in the field of labor economics. Indeed, as the title implies, Ehrenberg and Smith literally put the modern in labor economics as taught to undergraduates. Since first published in 1982, many competing textbooks in labor have come and gone. Ehrenberg and Smith, with impeccable writing, comprehensive coverage of the relevant topics, and intuitive application of economic analysis to the critical public policy problems of the day, has stood both the market test and the test of time."
Kevin J. Murphy, Oakland University, Rochester Michigan, USA