The aim of this course is to apply the main tools of economic analysis to the understand how the labour market works. Once students understand the basic principles ruling the decisions of agents in the labour market (employers, workers, unions, etc.), they should be capable of identifying the main issues in this area and the outcomes of the policies that have been implemented to improve its efficiency and offset its distributional effects. It is stressed that economic models are critical to find and analyze the appropriate data. Moreover, it is shown how empirical results should inform sound public policy. That is why we stress the importance of learning technics of data analysis, using integrated statistics package such as STATA.