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"Labour Economics can be defined as a study of the institutions, organization, and behavior of the labour market in an industrial economy".
Labour economics is the study of the labour force purely as an element requires in the process of production. The labour force includes all those who are working for making profits, whether employees, employers, or as self-employed, and it also includes the unemployed people who are seeking work.
Nature of Labour Economics:-
Labour economics is as per the process of development and also its definition tends to change according to the nature of the economy. It is assumed to indicate the criteria for delimiting the scope and enumerating and categorizing the problems.
1. The Theoretical Section:-
It is concerned with economic behavior models by making diverse sets of assumption.
2. The Institutional Section:-
It is concerned with the study of labour problems in an institutional historical content as the nature of the labour problems changes with the change framework of the economic systems.
Scope of Labour Economics:-
Labour economics needs to deal with things like manpower planning, labour organization, collective bargaining theory, labour relations and public policy wage and employment theory, and practice of social security and welfare etc. Various areas related with labour economics are -
1. Institutional framework of the particular economic system.
2. Size and composition of the labour force and labour market.
3. Labour as a factor of production- productivity and efficiency condition of work-industrial relation standard of living.
4. Labour's risk and problems
5. Principles of personnel management and job evaluation
6. Trade unionism
7. Labour legislation
8. Labour's status and position in society
9. Advance theory of labour economics
10. Principle and practice of labour welfare
11. Labour laws
12. Theory and practice of trade union management.
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