The objective of this course is to provide students with the necessary tools to be able to analyze the consequences of various labor market institutions and active labor market policies on employment, unemployment and labor market participation.
Course overview :
In the three first chapters, we will propose various theoretical setups to analyze the impact of various types of taxes, a minimum wage and labor unions on the functioning of the labor market. The theories of discrimination under perfect and imperfect competition are analyzed in chapter 4. The theory of human capital, the role of education as a signaling device and the relationship between education and income are studied in chapter 5. The last chapter will introduce the modern theory of the labor market based on search and matching. This more modern theoretical setup will be studied in more detail in Master 2.
For every chapter, we will contrast theoretical predictions with empirical evidence.