Duration: 3 hours for 13 weeks [ECTS: 6]

Course Outline

This course provides an introduction to the theory and practice of contemporary Labor Economics. The course will introduce students to major topics in the field, namely labor supply and labor demand, migration, investments in human capital, unions, wage determination, earnings inequality, and unemployment. A good knowledge in microeconomics and macroeconomics and a basic knowledge of econometrics is required by students. The course outline is as follows:

1. Introduction to Labor Economics
2. Labour supply (maximization behaviour of workers, income and substitution effects, reservation wage, taxation upon work, retirement)
3. Labour demand (the production function, Hicks-Marshall laws of derived demand, elasticity of substitution, policy applications: minimum wages, trade unions)
4. Labor market equilibrium (single labour market, equilibrium across markets policy applications: subsidies, taxation, benefits, monopsony)
5. Human capital theory (the human capital models, education and earnings, rate of return to education, education as a signal)
6. Labor mobility (the migration choice, individual and family migration, job match and job turnover)
7. Unions and the labor market (union membership, monopoly unions, efficient bargaining, strikes)
8. Unemployment and income inequalities (unemployment, job search, unemployment compensation, efficiency wages and unemployment, Phillips curve, income distribution policies)

Learning Outcomes

By the end of the semester, the students should be able to:

• Understand the basic principles of Labour Economics and to also comprehend the different characteristics of international labour markets
• Critically discuss and analyse modern labour market issues and challenges
• Understand and critically assess modern labour market policies and measures