ABSTRACT
At the end of this chapter, readers should understand that:
It is not straightforward to determine what is a labour shortage or labour surplus;
Non-price adjustments are the most common response by employers to labour shortages;
Over-education and under-education are common phenomena with effects on wages, job satisfaction and mobility;
Labour market discrimination may originate from employers, co-workers or consumers with distinctive consequences in terms of wages and segregation;
There is an index number problem in estimating the degree of discrimination using the standard decomposition method;
Different considerations apply to discrimination on account of gender, race, disability and age;
Some discrimination may be statistical rather than taste-based.
