Labour Economics

This information is for the 2013/14 session.

Teacher responsible

Dr Esteban Aucejo 32L. 2.30 and Dr Pascal Michaillat 32L. 1.11


This course is available on the MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit.


Students must have completed Introductory Course in Mathematics and Statistics (EC400).

Course content

An advanced course in labour economics issues, including theory, evidence and policy. The aim of the course is to familiarise students with main theoretical and empirical issues in current labour economics, and to provide them with the tools for developing independent research interests. The course has a strong applied focus. For each major topic covered we will derive testable implications, provide insights into the research methodology, discuss the advantages and limitations of existing empirical work, and draw policy conclusions. Topics include: Wage determination, compensating differentials, race and gender gaps, and wage inequality Human capital, returns to schooling, signalling and training Incentives in the labour market Job search frictions and monopsony Labour market institutions: minimum wages, unemployment compensation, employment protection, unions The economics of crime


20 hours of lectures and 8 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT. 2 hours of lectures and 2 hours of seminars in the ST.

Formative coursework

One written assignment at the end of each term.

Indicative reading

Most of the reading is from journal articles. A detailed reading list is available at


Exam (50%, duration: 3 hours) in the main exam period.
Essay (50%, 6000 words) in the ST.

Key facts

Department: Economics

Total students 2012/13: 12

Average class size 2012/13: 7

Value: One Unit

Guidelines for interpreting course guide information