1. Introduction.- 1. Subject Matter.- 2. Previous Work.- 3. Choice in Labor Markets.- 4. Outline of Remaining Chapters.- 2. Search in Labor Markets.- 1. Introduction.- 2. Worker Search Behavior.- 3. Impacts of Labor Market Conditions.- 4. Extensions.- 5. Distributions of Workers and Jobs.- 6. Behavior of the firm.- 7. Summary.- 3. The Valuation of Unemployment.- 1. Introduction.- 2. Alternative Valuations.- 3. Previous Estimates.- 4. Direct Estimates.- 5. Aggregate Approach.- 6. Labor Force Participation Approach.- 7. Cross-Section Estimates.- 8. General Conclusions.- Appendix: Data Sources.- 4. The Distribution of Employment.- 1. Introduction.- 2. Previous Work.- 3. Sources of Inequality.- 4. Distribution of the Time Spent Unemployed.- 5. Employment Inequality.- 6. Heterogeneous Transition Rates.- 7. Conclusions.- 5. The Distribution of Wage Rates.- 1. Introduction.- 2. Truncated Wage Offer Distributions.- 3. Accepted Wage Distribution.- 4. The Contribution of Choice.- 5. The Source of Wage Rate Dispersion.- 6. Summary.- 6. Inequality.- 1. Introduction.- 2. Statistical Relations.- 3. Observed Earnings Inequality.- 4. The Role of Choice and Uncertain Outcomes.- 5. Unemployment-Compensated Wage Rates.- 6. Inequality by Source.- 7. Summary.- 7. The Operation of Labor Markets.- 1. Introduction.- 2. Dual Labor Markets.- 3. The Business Cycle.- 4. Wage Rigidity, Wage Resistance and the Aggregate Supply Curve.- 8. Chronic Underemployment and Regression Towards the Mean.- 1. Introduction.- 2. Advantageous Trades and the Economic Role of Unemployment.- 3. Definition of Underemployment.- 4. Tests for Underemployment.- 5. Regression Towards the Mean.- 6. Chronic Underemployment.- 7. Comparison with Previous Theories.- 9. Summary.- 1. Ten Theoretical Conclusions.- 2. Ten Empirical Results.- 3. Six Remaining Tasks.- 4. Three New Directions.- References.- Author Index.