The document discusses using recursive data definitions to represent payroll entries as structured data. It defines a payroll entry structure type with fields for an employee's name, SSN, position, hours worked, pay rate, current pay, and year-to-date pay. Examples are given of creating individual payroll entries. Functions are described for updating an entry's hours worked and pay fields, and for mapping a function over a list of payroll entries, such as to raise all employees' pay rates by a certain amount. The importance of recursive data definitions and interpretation in the definitions is emphasized.