Labour Economics

Recommended Prerequisites

English language and microeconomic theory (1st cycle). 

Teaching Methods

The course covers labor demand and supply, with the set of lectures underlining the main issues at stake, both in an intuitive and formal way. Students have access to handouts covering the key aspects of the discussion. The multiple choice exam serves to test the understanding of concepts rather than any formal derivations, although a good theoretical background is required. The project in turn requires students to write a 10-page essay on a topic at their choice. The goal is to allow them to think more deeply about some particular topic, while showing proficiency in the use of the economics.

Learning Outcomes

The course aims to provide the student with a solid introduction to contemporary labor economics. The objectives are to obtain an appreciation of the theory and reach of labor economics; to understand how labor markets can be analyzed from different economic perspectives; to obtain an understanding of how the experimental method of inquiry can be applied to analyze issues in labor and employment relations; and to get some acquaintance with the key institutions of the labor market as well as some appreciation of the diversity of employment relations.

Work Placement(s)

No

Syllabus

The course covers 9 chapters of the required textbook (Ronald G. Ehrenberg and Robert S. Smith, Modern Labor Economics).
The main body of the material covers labor demand and supply, monopsony, minimum wages, labor as a quasi-fixed factor, hiring and training investments, internal labor markets, compensating wage differentials, investments in human capital, signaling, payment systems, contract theory, the wage-tenure profile, the economic impact of unions, and unemployment.
Selected topics:
1. The demand for labor. 2. Demand elasticities. 3. Labor market frictions. 4. Labor supply. 5. Compensating wage differentials. 6. Human capital investments. 7. Pay and productivity. 8. Aspects of unionism. 9. Unemployment.

Assessment Methods

Assessment
Project: 50.0%
Exam: 50.0%

Bibliography

Principal: EHRENBERG, Ronald G.; SMITH, Robert S (2022). Modern labor economics: theory and public policy. Routledge.