The labor market affects the daily lives and the welfare of every individual directly. Hence, the analysis of labor markets is of importance and interest not only to economists but to the population at large. Labor economics is a very challenging and a stimulating area in economics due to the special characteristics of the labor market. For example, different to capital workers are not commodities with fixed characteristics and make decisions about the nature of their participation in the labor market. Institutions affect the labor market much more than any other market. The aim of this module is to give an understanding of the distinctive features of labor markets and the ways in which they operate. Among other things, we will analyze labor supply, labor demand, human capital, and the role of different labor market institutions and labor market policies for wages and employment. Throughout the module, we attempt to integrate theoretical issues and empirical evidence, and to address questions of policy. The latter will concentrate on European issues.
Detailed module description in the Module Handbook.
Lecture and Tutorial