1 Introduction -- 1.1 The Problem -- 1.2 Some Facts -- 1.3 Different Jobs, Different People -- 1.4 Related Approaches -- 1.5 Human Capital Theory -- 1.6 Capabilities -- 1.7 Outline of the Book -- 2 Individual Labor Supply -- 2.1 The Basic Model -- 2.2 Occupational Careers -- 2.3 Capability Development -- 2.4 A Life-Cycle Labor Supply Model -- 2.5 Evaluating Comments -- 3 Labor Demand -- 3.1 The Production Function -- 3.2 Equilibrium of the Firm -- 3.3 Some Comments -- 3.4 Price Changes -- 3.5 Evaluating Comments -- 4 Market Equilibrium -- 4.1 Divisibility -- 4.2 Divisibility and Equilibrium -- 4.3 Comparative Statics -- 5 The Income Density Function -- 5.1 The Earnings Function -- 5.2 Optimal Efforts -- 5.3 Age Distribution and Income Distribution -- 5.4 Income Distribution and Income Tax Rate Changes -- 5.5 Concluding Remarks -- 6 A Two-Capability Illustration -- 6.1 Labor Supply -- 6.2 Labor Demand -- 6.3 The Distribution of Income -- 6.4 The Distribution of Job Wage Rates -- 6.5 Effects of Income Tax Rate Changes -- 6.6 Concluding Remarks -- 7 On Testing -- 7.1 Main Hypotheses and Their Testing -- 7.2 Capabilities as Operational Variables -- 7.3 The Distinction between Capability Stocks and Capability Supply -- 7.4 Capabilities and Wages -- 7.5 Capability Development -- 7.6 Concluding Remarks -- 8 Measurement and Testing on American Data -- 8.1 The Data -- 8.2 Reconnaissance: The 1970 Census Data -- 8.3 Further Analysis: The 1950 and 1960 Census Data -- 9 Evaluation and Expansion -- Appendixes -- 2 The Labor Demand Model -- 3 Properties of Transformations -- 4 Effects of Tax Rate Changes -- 5 Explanation of DOT Variables -- 6 The 1970 Census Data Set -- 7 Distribution of Jobs by Capability Level -- 8. Selection of Regression Results: 1950-1960 Census Data -- Notes -- References -- List of Symbols -- Name Index.