Rosen, Sherwin Markets and Diversity

ISBN 13: 9780806931647

Markets and Diversity

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9780806931647: Markets and Diversity

Sherwin Rosen was highly creative and thought deeply about economic questions. This collection of some of his most important articles on compensating differences in labor and product markets, superstars, the value of life, investment in human capital, and other important economic questions is still fresh and stimulating. I expect his influence on economic thinking to grow. There is no better way to get into his work than to read "Markets and Diversity".--Gary S. Becker, Nobel Laureate in Economics

Vom Verlag:

A staunch neoclassical economist, Sherwin Rosen drew inspiration from Adam Smith's Wealth of Nations, particularly his theory of compensating wage differentials, which Rosen felt was central to all economic problems involving product differentiation and spatial considerations. The main theme of his collection is how markets handle diversity, including the determination of value in the presence of diversity, the allocation of idiosyncratic buyers to specialised sellers, and the effects of heterogeneity and sorting on inequality. Rosen felt that good economics required combining simple but powerful concepts such as optimising and equilibrium with careful empirical analysis. It was important for the relatively simple rules of behaviour implied by rationality to have useful, empirically descriptive content and predictive power. If they did, it was often possible to infer underlying structure (tastes and technology, for example) from actual behaviour. Using this approach, Rosen was able to develop powerful insights into such phenomena as the enormous salaries paid to sports and entertainment stars and top business executives. He also explored with fruitful results the premium paid to workers in risky jobs, learning and experience in the labour market, and other labour market phenomena.

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