Chapter 1 INTRODUCTION 1. 1 What does labor economics study? Labor economics studies how labor markets work Such as labor force participation, the firms demand for the high-skill workers, wage determination, the human capital investment, the labor mobility, the labor market discrimination trade Unions and unemployment2 Chapter 1 INTRODUCTION 1.1 What does labor economics study? • Labor economics studies how labor markets work. • Such as labor force participation, the firm’s demand for the high-skill workers, wage determination, the human capital investment, the labor mobility, the labor market discrimination, trade Unions and unemployment