Labor Economics is the study of the markets for wage labor. Here, the participants of the labor markets are the suppliers of labor that is, workers and the seeker for labor that is firms which are involved production activities in the economy. Copy the link given below and paste it in new browser window to get more information on Labor Economics:- http://www.transtutors.com/homework-help/economics/labor-economics.aspx

1. Labor Economics

2. What is labor economics?
• Labor economics is the study of the labor market
• Labor economics aims at understanding the behavior of
participants under different circumstances
• The participants are- individuals who supply the labor and the
individual firms that demand the labor
• Their reactions to changes in wage rates is one of the main areas
of study of labor economics
• It is different from other markets for other factors of production
because it deals with people who are the ones who actually
provide the labor in the form of their effort to produce the good
or service

3. Is labor economics a part of
microeconomics or macroeconomics?
• Labor economics combines elements of both microeconomics
and macroeconomics
• The behavior of individual firms and households constitutes the
microeconomic aspect of labor economics
• At the macroeconomic level, the labor market is inter linked with
the various other markets such as goods market, money market
and international trade market

4. What is the equilibrium condition in
the labor market?
• The labor market is in equilibrium when the demand of labor is
exactly equal to supply of labor
• The equilibrium wage rate is at the point of intersection of the
labor demand and labor supply curve
• The supply curve of labor is backward bending
• The demand curve for labor is the value of marginal product of
labor curve faced by the individual firm

5. Helpful links
• Here are a few helpful links for the topic of labor economics:
• http://www.journals.uchicago.edu/toc/jole/current
• https://www.hks.harvard.edu/fs/gborjas/LEPage.html

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