Journal of Economic Literature
Book Reviews
2026-08-28
Kevin F. Hallock of Cornell University and NBER reviews “Personnel Economics in Imperfect Labour Markets” by Pietro Garibaldi,. The EconLit Abstract of the reviewed work begins “Discusses topics in personnel economics--the use of economics for studying human resource issues. Explores three basic possibilities for wage determination--wage setting by the firm, wage bargaining by the firm and worker, and wage determination made outside the firm and the worker by collective agreements. Discusses the optimal skill ratio; the hours-employment trade-off; temporary and permanent contracts; managing adverse selection in recruiting; optimal compensation schemes; pay for performance with wage constraints; relative compensation and efficiency wage; training and human capital investment; training investment in imperfect labor markets; job destruction; further issues in employment protection legislation; and teams and group incentives. Garibaldi is Professor of Economics at the University of Turin. Index.”