This volume consists of papers presented at a conference on labor mar- ket theory held in August 1982 at Sandbjerg - a manor house situated in S0nderjylland owned by University of Aarhus. The conference was ar- ranged to mark the start of a labor market research project utilizing the first Danish longitudinal data set. The conference was meant to present a survey of the recent developments within labor market theory where unemployment at a given time is seen as a result of flows of in- dividuals between the various labor market states. Consequently, al- most all papers deal with aspects of transitions on the labor market. The first paper by Andersen discusses from a statisticians point of view how it is possible to analyze longitudinal data on labor market dynamics using statistical models for multivariate counting processes. Models including general calendar time specific intensities and models specifying the distribution of spell lengths as well as their combina- tions are included. Finally it is demonstrated how the effect of exo- genous, endogenous, and other time dependent variables can be model- led. This paper does also contain an example of the application of the model.