Labor Economics

  1. Labor Demand
    1. Production Theory Foundations
      1. Firm's Production Function
        1. Inputs to Production
          1. Returns to Scale
            1. Marginal Product of Inputs
            2. Marginal Product of Labor
              1. Definition and Calculation
                1. Diminishing Marginal Returns
                  1. Relationship to Labor Demand
                2. Short-Run Labor Demand
                  1. Firm's Hiring Decision in the Short Run
                    1. Value of Marginal Product of Labor
                      1. Calculation and Interpretation
                      2. Profit Maximization
                        1. Hiring Rule in the Short Run
                          1. Short-Run Labor Demand Curve
                          2. Fixed vs. Variable Inputs
                          3. Long-Run Labor Demand
                            1. Firm's Hiring Decision in the Long Run
                              1. Isoquants and Isocosts
                                1. Definition and Properties
                                  1. Cost Minimization
                                  2. Scale Effect
                                    1. Output Expansion and Labor Demand
                                    2. Substitution Effect
                                      1. Input Substitution Due to Wage Changes
                                      2. Long-Run Labor Demand Curve
                                      3. Elasticity of Labor Demand
                                        1. Definition and Determinants
                                          1. Marshall's Rules of Derived Demand
                                            1. Substitutability of Inputs
                                              1. Elasticity of Product Demand
                                                1. Labor's Share in Total Costs
                                                  1. Elasticity of Supply of Other Inputs
                                                  2. Cross-Elasticity of Demand
                                                    1. Substitutes and Complements in Production
                                                  3. Market Labor Demand
                                                    1. Aggregation Across Firms
                                                      1. Shifts in Market Labor Demand
                                                        1. Industry vs. Economy-Wide Effects

                                                      Previous

                                                      2. Labor Supply

                                                      Go to top

                                                      Next

                                                      4. Labor Market Equilibrium