This PDF is a selection from a published volume from the National Bureau of Economic Research. The volume is titled "Investment in Human Beings," authored by the Universities-National Bureau Committee for Economic Research, published in The Journal of Political Economy, Vol. LXX, No. 5, Part 2 (University of Chicago Press), with ISBN 0-87014-306-9 and URL http://www.nber.org/books/univ62-3. The chapter titled "Information in the Labor Market" by George J. Stigler is included, with pages 94-105. The chapter discusses the dispersion of wage rates in the labor market due to imperfect information. Stigler argues that wage rates are not uniform even among homogeneous workers, and that this dispersion is due to the inability of workers to obtain complete information about all potential employers. He uses data from the Graduate School of Business at the University of Chicago to illustrate this point, showing that the standard deviation of monthly wage offers is around 43, with a coefficient of variation of 7.9%. He also discusses the correlation of wage rates over time and how this affects the dispersion of wages. Stigler concludes that the dispersion of wage rates is influenced by factors such as the worker's ability, the employer's search for workers, and the cost of search. He also notes that the dispersion of wages is smaller in more organized markets and that the effects of search on wage rates depend on the expected duration of employment. The chapter also discusses the costs of search and how they vary with the characteristics of occupations. Stigler concludes that the dispersion of wage rates is a measure of the information available to workers and employers, and that the efficient allocation of labor depends on the availability of information. The chapter also discusses the role of information as capital and how it affects the value of labor in the market.This PDF is a selection from a published volume from the National Bureau of Economic Research. The volume is titled "Investment in Human Beings," authored by the Universities-National Bureau Committee for Economic Research, published in The Journal of Political Economy, Vol. LXX, No. 5, Part 2 (University of Chicago Press), with ISBN 0-87014-306-9 and URL http://www.nber.org/books/univ62-3. The chapter titled "Information in the Labor Market" by George J. Stigler is included, with pages 94-105. The chapter discusses the dispersion of wage rates in the labor market due to imperfect information. Stigler argues that wage rates are not uniform even among homogeneous workers, and that this dispersion is due to the inability of workers to obtain complete information about all potential employers. He uses data from the Graduate School of Business at the University of Chicago to illustrate this point, showing that the standard deviation of monthly wage offers is around 43, with a coefficient of variation of 7.9%. He also discusses the correlation of wage rates over time and how this affects the dispersion of wages. Stigler concludes that the dispersion of wage rates is influenced by factors such as the worker's ability, the employer's search for workers, and the cost of search. He also notes that the dispersion of wages is smaller in more organized markets and that the effects of search on wage rates depend on the expected duration of employment. The chapter also discusses the costs of search and how they vary with the characteristics of occupations. Stigler concludes that the dispersion of wage rates is a measure of the information available to workers and employers, and that the efficient allocation of labor depends on the availability of information. The chapter also discusses the role of information as capital and how it affects the value of labor in the market.