Labour Economics

Course content

The course in labor economics is supposed to enable students to read and understand current and previous research in labor economics, discuss policy proposals from the perspective labor economics and reflect critically on new theories and empirical evidence.

The course covers the following topics:

  • Labor supply and demand
  • Education and human capital
  • Wage formation
  • Job search, unemployment and job reallocation
  • Bargaining and minimum wages
  • Active labor market policies
  • Flexicurity and employment protection
Learning outcome

After completing the course, the student should be able to:


Describe the following theories and concepts:

  • The neoclassical theory of labor supply both in a static and dynamic setting
  • The neoclassical theory of labor demand
  • General and specific human capital
  • Different types of wage determination, including bargaining, compensating differentials and contract theory
  • Local labor markets
  • Search and matching models of the labor market



Evaluate differences and similarities between the theories and concepts listed above


Apply the concepts and theories listed above in the analysis of concrete empirical phenomena and policy proposals:

  • Apply and extend theoretical labor market models with the view to understanding real world issues.
  • ​Construct and defend arguments on issues related to labor economics.
  • Assess an empirical research design and how to develop arguments supporting or critizing the empirical strategy.


Lectures and in-class discussion

The textbook for the class is:

Cahuc, P., S. Carcillo, and A. Zylberberg (2014), “Labor Economics”, MIT Press, ISBN: 9780262027700.

The textbook will be supplemented by lecture notes, slides and a few journal articles.

Pre-requisites are the bachelor-level micro, macro and econometrics courses.

2 hours lectures 1 to 2 times a week from week 6 to 20 (except holidays).

Timetable and venue:
The schedule for the semester spring 2018 will be available no later than 7th of November 2017

7,5 ECTS
Type of assessment
Written examination, 12 hours
take-home exam. The exam assignment is given in English and must be answered in English.
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
if chosen by the Head of Studies.
Criteria for exam assessment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 152
  • Exam
  • 12
  • English
  • 206