Dr Guy Michaels 32L.2.10, Prof Stephen Machin 32L.2.06A and Prof Yona Rubinstein NAB.5.32

This course is available on the MRes/PhD in Economics and MRes/PhD in Management (Marketing). This course is not available as an outside option.

The aim of the course is to familiarise students with main theoretical and empirical issues in current labour economics, to provide them with the tools for carrying out independent research in the field, and to provide a perspective on areas of ongoing research. The course has a strong applied focus. For each major topic covered we will investigate the main available theories in light of their testable implications, and discuss the advantages and limitations of existing empirical work and assess policy options.

Topics include:

• Labour supply, household behaviour, and the allocation of time
• Labour demand and monopsony
• Search, matching, labour market frictions, unions, and unemployment
• Wage determination, compensating differentials, race and gender gaps, and wage inequality
• Human capital, returns to schooling, and training
• Contracts and incentives in the labour market

30 hours of lectures in the MT. 30 hours of lectures in the LT.

One piece of work per term will be required and feedback given by teachers.

Readings will be mainly from journal articles; a list will be supplied at the start of term.

Exam (100%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.