Labour Economics: An Overview of Some Recent Theoretical and Empirical Developments

Abstract

It has long been recognised that the need for a ‘special’ theory of the labour market arises because of the ‘peculiar’ properties of labour which distinguish it from other commodities to which the usual theory of value may be applied (see, for example, Marshall, 1890; Hicks, 1932). Many important and exciting developments have taken place in the economics of the labour market over the past twenty-five years or so. Labour economics has by now established itself not only as a major subject in its own right, but also as one of considerable importance to the other main branches of economics, including both macro- and microeconomics. The purpose of the current volume is to provide readers with a coverage of the major recent developments which have occurred in labour economics, the majority of which have yet to find a place in set texts or other material readily accessible to students. Each chapter in this book has been specially prepared by an acknowledged expert in the relevant field, with the intention of providing both students and teachers of labour economics with a clear, comprehensive and up-to-date coverage of the topic in question. Our objective in this introductory chapter is to set the scene for the material which follows, by providing a brief overview of the major theoretical and empirical developments which have occurred in the subject over recent years.