The Economics of Labor Markets (ECLM) SS 2023

Lecturer:  Marek Ignaszak, Ph.D.

Venue, Dates and Times: see QIS/LSF

No class on 03.07.2023.

On 26.06.2023 we meet in class in HoF E.20 / DZ Bank

There are weekly lectures on Mondays at 4 p.m. and bi-weekly tutorials on Fridays at 2 p.m.

The lecture halls vary. Please pay attention to the details in QIS/LSF.

Module Description

This course offers an introduction to modern labor economics with a focus on labor market institutions, that is, systems of laws and programs that shape the behavior of individual workers and employers. The course introduces analytical tools and economic models to study various aspects of labor markets. We will investigate the effects of different institutions on the labor market, considering not only their direct effects on employment, unemployment, and wages but also its indirect effects, mediated by the presence of other institutions. We will try to understand the rationale for each labor market institution and assess to what extent it achieves its objective - both in theory and empirically. Since the labor market characteristics and the corresponding regulations vary enormously across countries, the course offers an international perspective. It gives an overview of differences in labor markets between countries and compares the efficacy of various institutional arrangements.

Learning Goals

• Students become familiar with modern labor economics theory. They can apply the theory to critically evaluate the efficacy of various labor market institutions. (LGB-1)
• Students learn how to quantify and measure differences in labor market institutions across countries. They learn the empirical tools that are needed to estimate the impact of these institutions on the labor market. (LGB-2 )
• We discuss both positive and normative policy prescriptions. Students learn about the costs and benefits of various labor market institutions for the well-being of all members of the society. (LGB-4) 

At the end of the course, the students should be able to answer questions such as:

• Which labor market institutions worked better in containing job losses during the Great Recession of 2008-2009?
• Who gains and who loses from employment protection legislation?
• Should minimum wages be diversified by age?
• Is it better to have decentralized or centralized bargaining systems in monetary unions?
• Should migrants have access to welfare benefits?
• Should governments regulate working hours?
• Can equal opportunity legislation reduce discrimination against under-represented groups in the labor market?

Topics

Lecture 1 Introduction: labor markets and institutions across countries and over time.
Lecture 2 Minimum Wages
Lecture 3 Unions and Collective Bargaining
Lecture 4 Antidiscrimination Legislation
Lecture 5 Regulation of Working Hours
Lecture 6 Early Retirement Plans
Lecture 7 Family Policies
Lecture 8 Education and Training
Lecture 9 Migration Policies
Lecture 10 Employment Protection Legislation
Lecture 11 Unemployment Benefits
Lecture 12 Active Labor Market Policies

Literature:

Main textbook is Boeri, T., & Van Ours, J. (2021). The economics of imperfect labor markets. 3rd edition, Princeton University Press.

Supplementary readings will be provided in the course of the lecture.