Course ObjectiveThis course is an introduction to labor economics with an emphasis on
applied microeconomic theory and empirical analysis. The aim of the
course is to acquaint students with traditional and contemporary topics
in labor economics. The following course objectives are defined:
• Demonstrating a theoretical understanding of how labor markets operate
(bridging theory and practice - knowledge).
• Understanding the recent developments of wage determination in
imperfectly competitive labor markets (bridging theory and practice -
• Understanding how institutional forces and technological change shape
labor market performance (bridging theory and practice - knowledge).
• Being able to discuss critically existing empirical evidence (bridging
theory and practice - knowledge).
• Learning how to distinguish alternative theories empirically and how
key parameters are obtained from data (academic and research skills,
bridging theory and practice - application & broadening your horizon).
• Performing own empirical analysis by means of a replication exercise
(academic and research skills & bridging theory and practice -
• Understanding the crucial role of better data and a better match
between theory and empirics in finding pertinent answers to societal and
economic problems in contemporary labor markets (bridging theory and
practice - application & broadening your horizon).
Course ContentThe course covers a systematic development of theories of wage
determination over the past decades. We focus on the two traditions of
modelling wage determination in imperfectly competitive labor markets:
ex post wage bargaining and ex ante wage posting. We study employment in
a dynamic context, emphasizing the role of search frictions. We focus on
the evolution of wage inequality and changes in the employment
structure, taking into account the role of technological change,
international competition and labor market institutions. These topics
are politically and economically important and underscore a lot of
modern labor economics.
Teaching MethodsLectures and tutorials (in-class presentations of assignments).
Method of AssessmentInterim assessment: Case/paper individual, Case/paper group and
Presentation. End of period: Open exam. Conditional on the exam grade
exceeding 5.0, assignments count for 40% of the final grade and the exam
for 60%. If the exam grade is lower than 5.0, the final grade is equal
to the exam grade.
LiteratureSelected main readings (papers) and chapters of the textbook "Cahuc P.,
Carcillo S. and A. Zylberberg. 2014. Labor Economics (2nd edition). MIT
|Language of Tuition||English|
|Faculty||School of Business and Economics|
|Course Coordinator||dr. S. Dobbelaere|
|Examiner||dr. S. Dobbelaere|
dr. S. Dobbelaere
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