Labor Economics

Course Objective: 

 

The aim of this course is to introduce the student to labor economics with an emphasis on microeconomic theory and experience. The material covered will help the student to understand real-world issues relating to labor markets and to assess related public policy measures.

Course Outcomes:  The students will be able to

1

Understand the Basic economic forces behind employment and wages decisions

2

Identify Sources of labour market imperfections, driving forces for education and skill upgradation, discrimination among the workers and public polices for labour welfare

Course Content:  

 UNIT I

Labour Supply: Choice between Consumption and Leisure; Incorporating Household Production and Decisions.

10 hrs

 UNIT II

Labour Demand and Equilibrium: Labour Demand Function, Competitive Equilibrium, Compensating Wage Differentials and Hedonic Theory of Wages

10 hrs

UNIT III

Discrimination Theories of Discrimination, Measuring Discrimination, Affirmative Action

10 hrs

 UNIT IV

Investment in Education: Theory of Human Capital, Education as a Signalling Device, Returns to Education

10 hrs

UNIT V

Job Search, incentives and efficiency of wages, Migration

10 hrs

UNIT VI

Labour Market Institutions and Policies Collective Bargaining and Labour Unions, Minimum Wage and Employment, Unemployment Insurance, Job security regulations

10 hrs

Internal Assessment: 

 CIA 1

Unit I, Unit II 

 

 CIA 2

Assignment submission and/or presentation 

 

Text Books: 

1.       Cahuc, P.; Carcillo, S. and Zylberberg, A. (2014): Labor Economics, MIT Press

2.       Ehrenberg, R. G. and Smith, R. S.(2018): Modern Labor Economics: Theory and Public Policy, Routledge

3.       Borjas, G. J. (2010): Labor Economics, McGraw-Hill/Irwin, Boston MA (5th edition)

 Reference Books: 

4.        Card, D., and Ashebfelrer, O. (2011): Handbook of Labor Economics, Vol 4A & B, Elsevier