The course will cover concepts and methods in labor economics.. Particular areas of focus are the roles played by supply and demand, the influence of workers’ (misspecified) beliefs, and the effects of transparency in the labor market. Both theoretical and applied work will be discussed.

Topics

1. Labor supply and the allocation of time

2. Labor demand, unconstrained and when labor supply is restricted

3. Monopsony power

4. (Misspecified) Beliefs about the labor market and wages

5. Transparency rules and wages

6. Other topics, such as discrimination, crime, education

By the end of the course, students should have a firm grasp of the most recent development in labor economics and apply the discussed theories and methods to their own research questions and data.

Attendance is compulsory and active participation (=discussion, presentations, questions, remarks) in class is expected. To some extent, this will be checked through the use of the WU-Learning Apps.

Lectures: During the lectures, we will discuss the respective theoretical models and

applications. The focus will be on both the underlying assumptions and implications

of the models, as well as their empirical content. Before class, students are expected

to read the assigned papers from the respective section from the reading list, indicated

by ∗.

Presentations: In the last lectures (presentation meetings), we will discuss recent papers

in labor economics and possible extensions. Each student will choose one paper,

either from the references listed below (marked by ‡) or of their own choice, and prepare

a presentation of around 45 minutes. The presentation should include an overview of

the paper, a critical evaluation, as well as a possible (theoretical or empirical) extension

based on your evaluation.

Students are expected to read the assigned papers, attend all classes, and actively participate during the lecture. Grades of the course will be based on:

1. class-room participation (10%)

2. class-room presentation (40%)

3. short paper based on presentation (50%)

Further details will be announced during the course.

This course is for graduate students who have successfully completed a labor economics

course on the Bachelor/Master level. Students should have a foundational understanding of

the concepts in labor economics, such as labor supply and demand in competitive markets,

and basic knowledge of standard econometric techniques, such as difference-in-differences

and instrumental variable estimation.

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