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.

Part I. Introduction 1. Basic Definitions of Labor Market Outcomes. How Does the Labor Market Work? What is Special about the Labour Market? Part II. Labour Supply, Labour Demand, Competitive Equilibrium and Skills 2. Labor Supply 3. Labor Demand 4. Competitive Equilibrium and Compensating Wage Differentials Part III. Institutions 5. Unions 6. Education and Training Part IV. Labour Market Frictions and Equilibrium Unemployment 7. Search and Matching Equilibrium Unemployment Model Part V. Discrimination and Inequality 8. Discrimination 9. Inequality

The structure of study of each topic will be common: - Lectures. Each topic will be introduced from an empirical point of view. This part will be completed with the theoretical study of the issues with a focus on micro and / or macroeconomic applications to labor economics. Sets of slides are available covering the main material in each of the topics. - Classes, to solve exercises and problems. The students (possibly in groups) should also write an essay about a paper related to the topics covered during the course. This activity will be completed with computer practice sessions, where they will use a statistical package (i.e., Stata) to address an issue of interest in the labour market. This may include replicating the results of at least a relevant research paper related to the topic of study. At the end of the course, the student must present his or her work in class. Through the essay the student should demonstrate his or her ability to apply a conceptual framework and data analysis techniques to an economic issue of interest. There will be at least one quiz during the course.