Most of Parts I-III has been completely rewritten for this edition.
Those who have used the book in the past will find a number of significant
additions: a new chapter on the economics of education and human capital;
a revised discussion of the labor market, incorporating recent research on
job search and labor turnover; a separate chapter on labor market dis-
crimination, divided equally between problems of women workers and of
black workers; a rewritten chapter on the unemployment-inflation trade-off
and the problem of reconciling these divergent objectives; a thorough re-
consideration of the poverty problem; and a new chapter on collective bar-
gaining in public employment. To incorporate all this new material without
increasing the size of the book was a difficult task, but I have come close
to hitting the target.

I am grateful for advice and help from many quarters. Professor Stan-
ley Masters of Notre Dame University, Dr. Thomas Gutteridge, State Uni-
versity of New York at Buffalo, Professor David Kidder, Curry College,
and Professor Michael Marmo, Xavier University, read portions of the
revised draft and made suggestions for improvement; but the usual dis-
claimer concerning their responsibility is in order. Marianne Hill compiled
the new statistical data. Gail Ross did a meticulous job of typing and
checking the manuscript.

In addition to those whom I can thank by name, I should like to
express appreciation to the hundreds of students and teachers throughout
the country whose suggestions have contributed to the continuing improve-
ment of this book.

L.G.R.

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