This module is concerned with some of most interesting issues on the current economic policy agenda, for example, the effects of minimum wages, the impact of immigration, the causes of unemployment and the persistence of discrimination. It contains both theoretical and empirical components and will include the interpretation of econometrics analysis. The first semester will introduce labour demand, labour supply and the human capital model, with appropriate applications. The second semester will continue with applications of the human capital model and also discuss various aspects of wage determination.

The module aims to provide students with the microeconomic tools needed to examine a range of labour market issues. It also introduces some of the modern empirical techniques that have been applied to study the operation of labour markets in the UK and other developed countries, as well as providing the relevant information so that students can analyse the published empirical findings from a critical perspective.

By the end of the module students will be able to:-

• Apply standard economic principles to the analysis of labour market behaviour
• Describe the main features of, and trends in the UK labour market
• Interpret relevant labour market data and empirical findings 
• Recommend appropriate policy responses for different labour market problems

The following is an indication of the likely topics to be covered:-

• Labour supply and demand
  
• Labour market equilibrium
• Unemployment
• Education and training
  
• Trade unions 
• Wage inequality and executive pay
• Labour mobility and immigration
• Labour market discrimination

Borjas, G. J. (2007), Labor Economics, 4^th edition, McGraw-Hill.

Ehrenberg, R. G. and Smith, R. S. (2006), Modern Labor Economics: Theory and Public Policy, 9^th edition, Addison Wesley. 

5 October 2010