Handbook of Labor Economics Volume 3: Volume 3B (Handbook of Labor Economics)

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. Examines labour supply and demand and their impact on the wage structure. Explains the sources of income inequality, and the disincentive effects of attempts to produce a more equal distribution. Labour supply is considered in relation to the incentives which individuals have to provide labour services. Observes that heterogeneity in worker skills and employer demands often tempers the outcomes that would be expected in frictionless labour markets The effects of the minimum wage on employment and the distribution of income have been hotly debated policy questions for over 50 years.