Prof. Bernd Fitzenberger, Ph.D.
Dr. Aderonke Osikominu
University of Fribourg
Spring Term 2009
Labor Economics
There will be 12 blocked lectures held by Prof. Fitzenberger on 2/3 March, 3 April, and 24 April
2009, and 9 blocked exercise sessions held by Dr. Osikominu on 20 March, 9 April, and 08 May
2009 (see below for further details).
Summary of the Course: Wages, employment, and education are key aspects for the well being
of most individuals in an economy and labor market policy is an important part of economic policy.
A high and persistent level of unemployment is one of the major policy problems in Germany.
This course provides an overview on the economic analysis of labor markets. The main parts of
the course are static and dynamic theories of labor supply, labor demand, investment into human
capital, union theories and wage bargaining, efficiency wages, unemployment, as well as issues
in personnel economics. The course will be both theoretical and empirical. A number of current
policy issues will be discussed as case studies such as ‘welfare to work policies’. The exercise
session involves working on the solutions of problem sets.
Prerequisites: Microeconomics, Macroeconomics, Econometrics
Language: English
Participants are expected to read pp. 15–24 of the OECD Employment Outlook 2008 before the
first lecture.
The same course was taught at the Albert–Ludwigs–University of Freiburg (Germany) in the
winter term 2008/09. Additional course materials can be found on the website of the course, see
http://www.empiwifo.uni-freiburg.de/lehre-teaching-1/winter-term-08-09/labor-economics/
A limited set of course readers including the slides of the course from winter term 2008/09 is
still available and can be bought in the first lecture for CHF 10 from Prof. Fitzenberger. There
will also be a copy of the reader which students can make copies from.
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Outline
1. Introduction
Case Study: Overview on labor market problems in Germany (Heckman, 2002)
2. Labor Supply
Case Study: Welfare to work policies
3. Human Capital and Signalling
4. Labor Demand
5. Unemployment, Search and Matching Theory
6. Unions and Wage Bargaining
7. Personnel Economics: Incentive Wages, Efficiency Wages, Seniority Wages
Main References
Borjas, G.J. (2007) Labor Economics, 4th edition, McGraw-Hill, Boston.
Franz, W. (2006) Arbeitsmarktökonomik, 6th edition, Springer Verlag, Heidelberg.
Further References
Ashenfelter, O. and D. Card (1999) Handbook of Labor Economics, Volume 3A–3C, Elsevier
Science, Amsterdam.
Ehrenberg, R.G. and R.S. Smith (2003) Modern Labor Economics: Theory and Public Policy,
8th edition, Pearson.
Heckman, J. (2002) Flexibility and Job Creation: Lessons for Germany. NBER Working Paper,
No. 9194.
Kaufman, B.E. and J.L. Hotchkiss (2003) The Economics of Labor Markets, 6th edition, Dryden
Press, Fort Worth.
Lazear, E.P. (1998) Personnel Economics for Managers, Wiley, New York.
OECD (2008) Employment Outlook, July, Paris.
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Lectures by Prof. Bernd Fitzenberger, Ph.D.:
Date
Monday, 02 March
Time
11:15
14:15
15:15
17:15
Tuesday, 03 March
08:15 - 11:00
13:15 - 16:00
PER 21 C230
PER 21 G230
Friday, 03 April
11:15 - 13:00
14:15 - 16:00
17:15 - 19:00
PER 21 D130
PER 21 D130
PER 21 D130
Friday, 24 April
11:15 - 13:00
14:15 - 16:00
17:15 - 19:00
PER 21 D130
PER 21 D130
PER 21 D130
-
13:00
15:00
16:00
19:00
Room
PER 21
PER 21
PER 21
PER 21
C230
A230
A230
A230
Exercise sessions by Dr. Aderonke Osikominu:
Date
Friday, 20 March
Time
10:15 - 12:00
14:15 - 18:00
Room
PER 21 D130
PER 21 D130
Thursday, 09 April
10:15 - 12:00
14:15 - 18:00
PER 21 D130
PER 21 D130
Friday, 08 May
10:15 - 12:00
14:15 - 18:00
PER 21 B130
PER 21 B130
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