Labor market theory and models

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

This chapter reviews labor supply, demand, and equilibrium topics with the goal of showing how they determine labor market area (LMA) outcomes across geographic space. Labor supply curves are based on utility-maximizing choices between working and leisure, subject to a budget constraint, while labor demand curves are derived from the firm’s production function assuming profitmaximizing behavior. The challenges of defining and empirically delimiting LMAs are examined from historical perspectives and using statistical clustering analysis, with commuting data serving as a key tool. A key distinction is drawn between functional versus homogenous regionalization problems, and a number of suitable statistical approaches are reviewed. Current models used to study differences in earnings across labor markets as well as the effects of boom and bust cycles are also discussed. An empirical technique is presented for decomposing employment change within a community into four key labor market concepts: commuting, unemployment, labor force participation, and migration.

Original languageEnglish (US)
Title of host publicationHandbook of Regional Science
PublisherSpringer Berlin Heidelberg
Pages35-57
Number of pages23
ISBN (Electronic)9783642234309
ISBN (Print)9783642234293
DOIs
StatePublished - Jan 1 2014

Fingerprint

Labour market
Labor supply
Commuting
Historical perspective
Leisure
Labour demand
Labor force participation
Demand curve
Regionalization
Production function
Employment change
Unemployment
Budget constraint
Clustering analysis

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Goetz, S. J. (2014). Labor market theory and models. In Handbook of Regional Science (pp. 35-57). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-23430-9_6
Goetz, Stephan J. / Labor market theory and models. Handbook of Regional Science. Springer Berlin Heidelberg, 2014. pp. 35-57
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Goetz, SJ 2014, Labor market theory and models. in Handbook of Regional Science. Springer Berlin Heidelberg, pp. 35-57. https://doi.org/10.1007/978-3-642-23430-9_6

Labor market theory and models. / Goetz, Stephan J.

Handbook of Regional Science. Springer Berlin Heidelberg, 2014. p. 35-57.

Research output: Chapter in Book/Report/Conference proceedingChapter

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Goetz SJ. Labor market theory and models. In Handbook of Regional Science. Springer Berlin Heidelberg. 2014. p. 35-57 https://doi.org/10.1007/978-3-642-23430-9_6