I: Introduction by the Editors: Edward P. Lazear: A Founding Father of Personnel Economics -- II: What Is Personnel Economics? -- III: Explaining Labor Institutions in Business -- Introduction -- 1. Why Is There Mandatory Retirement? -- 2. Pensions as Severance Pay -- 3. Job Security Provisions and Employment -- 4. An Economic Analysis of Works Councils -- 5. The Peter Principle: A Theory of Decline -- IV Compensation Structures -- Introduction -- 6. Rank-Order Tournaments as Optimum Labor Contracts -- 7. Salaries and Piece Rates -- 8. Performance Pay and Productivity -- 9. The Job as a Concept V Social Interactions and Personnel Economics Introduction -- 10. Peer Pressure and Partnerships -- 11. Pay Equality and Industrial Politics -- 12. Culture and Language VI: Skill Acquisition and Personnel Economics Introduction -- 13. Firm-Specific Human Capital: A Skill-Weights Approach -- 14. Educational Production -- 15. Speeding, Terrorism, and Teaching to the Test -- 16. Entrepreneurship -- VII: Personnel Economics -- The Past and Future.