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Applied economics III

Applied economics III

En pratique :

Volume horaire de cours : 18
Langue principale : Anglais

Description du contenu de l'enseignement

First, we analyze how the labor market works by investigating labor demand, labor supply and unemployment. In a second part of the course we open the black box (i.e. the firm) in order to investigate hiring, training and wage setting policies as well as working conditions.


In English

  • Borjas G. Labor Economics, McGraw Hill International Edition
  • Cahuc P.and A. Zylberberg, Labor Economics, MIT Press

In french :

  • Masclet D. et T. Rebieres Economie du travail et des ressources humaines, Economica

NB : The students are not requested to read the last version of the book.

Scheduled (subject to minor changes)


Part 1. The labor market

Chapter1 Labor demand

  1. Short term labor demand under perfect competition
  2. Short term labor demand under imperfect competition
  3. Long term labor demand under perfect competition

Chapter 2 Labor supply

  1. Trade off labor vs leisure
  2. Curve of labor supply

Chapter 3 labor market equilibrium and unemployment

  1. Equilibrium in the labor market and classic unemployment
  2. Cyclical unemployment
  3. Structural unemployment
  4. Imperfect information and frictional unemployment

Part 2 Managerial policies and personnel economics

Chapter 4 Recruitment policies

  1. Recruitment and signaling
  2. Recruitment and screening
  3. Recruitment and labor contracts.

Chapter 5 Training

  1. Initial training
  2. On the job training

Chapter 6 Compensation policies

  1. Moral hazard, incentives and compensation schemes
  2. Efficiency wage
  3. Hedonic wages



Compétences à acquérir

The objective of this course is to analyze how the labor market works. In this course we survey the field of labor economics with an emphasis on both theory and facts. Precisely we investigate questions in traditional labor economics such as :

  1. How wages and employment levels are determined?
  2. How many workers should be hired?
  3. What are the determinants of the labor supply and labor demand?
  4. Why is there unemployment?
  5. Do minimum wages increase the unemployment rate of less-skilled workers?

In addition, this course also investigate questions in a more recent part of labor economics, personnel economics that deals with hiring decisions, wage setting, training policies and working conditions