Learning Outcomes
Students, upon successful completion of the course, will be able to:
1. Have a deeper understanding of labor market issues.
2. Understand the concepts of labor supply and demand, the causes of unemployment, the impact of migrants on the labor market performance of indigenous workers
Course Content (Syllabus)
The tools of positive analysis: economic theory and econometrics. Causal inference: going beyond correlations. The neoclassical model of labor supply, the reservation wage. Labor demand. The Hicks–Marshall laws of derived demand. Labor market equilibrium. The impact of a binding minimum wage on the employment of unskilled labor: perfectly competitive labor market versus a monopoly market. Macroeconomic theories of unemployment: labor unions, efficiency wages, the Shapiro-Stiglitz model, the job search theory of Mortensen and Pissarides. Human capital, productivity and signaling. The causes of migration. Roy's model. The assimilation of immigrants in the labor market of the host country. The labor market effects of migration on indigenous employees. Discrimination in the labor market. The Blinder and Oaxaca method. International trade and wage inequality. The phenomenon of "job polarization"