ABSTRACT

The most important parties in the labor market are the suppliers and the demanders; their interaction is the most important function of this market. The labor market deals with the most important variables of the economy, such as income, wages, and employment. In the conventional setting, despite its heterogeneous nature, labor services are considered one composite commodity with a single price. Both the demand for labor and the supply of labor will determine the market mechanism of the labor market; the converge to the equilibrium wage rate. Labor economics are discussed by theorists from two perspectives: the micro and macro dimensions. The chapter discusses different Muslim jurists related to the different corners of the supply of labor in the setting of the Islamic labor market. In an Islamic labor market, the skill of labor is not considered in the same way as in a conventional economic system.