The centerpiece of most adults' daily lives is the workplace, where all participants-as workers or managers-can benefit from thinking strategically about employee motivation, compensation, and selection. _Personnel Economics_ uses simple but formal economic models to study what happens inside the workplace. Fueled by the latest findings from behavioral economic research, the text provides an intuitive introduction to the two workhorses of empirical research on personnel issues: designing experiments and using regression to study naturally occurring data.