ECON 3400 - Labor Economics

Credits: (3)
Typically taught:
Spring [Full Sem]

The study of labor economics explores choices made by the two sides of the labor market, employers and workers and how these choices interact in determining wage and employment levels. Hence, an important part of the course consists of a detailed analysis of labor demand and supply. This analysis is followed by a discussion of why the labor market often does not clear, i.e., why we observe unemployment. The analysis focuses on special features of the labor market such as minimum wage, labor unions and efficiency wages. Other topics include the effect of education and training on earnings, the optimal incentive structure of an employment contract and determinants of income inequality. Prerequisite: ECON 2010.