A Modern Labour Economics Textbook

The second edition of a comprehensive monography Labor Economics is here right 10 years after the first one. One thousand pages offer the economic theory, figures, formal mathematic description of economic relations and a rich empirical material describing functioning of labour markets, using data mainly from the USA and OECD member states. The mathematic methods and econometric models made a significant progress in the last decade and take a prominent place in academic publication about labour markets. The new edition of this book presents the newest methods in this style and is able to become a practical guideline how to use them in the labour market research. Compared to the first edition, more space is dedicated to public policy analysis and decisions of politicians about measures intervening into the labour markets. The new chapters are devoted to wage inequalities, income redistribution and protection of employees against the risks on the labour market. The analysis of technological changes and globalisation process impact on the labour market is in an intensive connection therewith. Each chapter is ended by a final conclusion, list of books for further reading, and a reference list. The appendixes at the conclusion of the chapters include formal inscription of relations, mathematic formulas and mathematic proofs. The authors recommend different portfolios of selected chapters according to the level of complexity as a textbook for bachelor, master and doctoral students. The book is divided into four parts and fourteen Chapters altogether followed by four separate mathematical appendixes, developing the topics of appendixes following the chapters. The first part is about supply and demand on the labour market and their mutual interaction on the competitive market. These interactions generate equilibrium wage and equilibrium employment. It shows how the mechanism of competition motivates the interested persons to invest into education and work preparation. The first part is divided into four chapters. The first chapter goes out of the fundamental neoclassical model of decisions between consumption and leisure time, and leads to the explanation how the individual labour supply is created with the informative value for fluctuation in participation rate for different population categories. It includes also the model of creation of labour supply with household production and the model of labour supply in the entire life cycle. It takes note of the participation of women on the labour market and discusses