**8. Conclusion**

In this chapter, we have studied the labor market. Just like the goods and services markets, the labor market consists of supply and demand. We saw that the backward-bending nature of the labor supply curve arises from people's decisions between work and leisure. We also learned that the downward-sloping nature of the labor demand curve arises from the fixed amount of capital. The interaction of labor supply with demand determines the market equilibrium wage and total employment. Using this perfectly competitive labor market model, we examined the impacts of immigration and minimum wage on the labor market. Although the labor market, in reality, can be very complicated, the simplified model can assist us in understanding the core of the labor market.

*Labor Markets DOI: http://dx.doi.org/10.5772/intechopen.101687*
