Courses

Lecture, 2 contact hours per week

Instructor 

Prof. Dr. Elke Jahn

Course Description 

This course provides an introduction to modern labor market theory and labor market policy from a microeconomic perspective. In addition to the standard neoclassical model, the course examines various theoretical approaches to explaining involuntary unemployment. Particular emphasis is placed on current empirical evidence and on demonstrating how testable hypotheses can be derived from theoretical models. The course also introduces the key institutions of the German labor market and discusses their economic effects.

Course Outline

1. Labor Supply

2. Labor Demand

3. Labor Market Equilibrium

4. Empirical Aspects of the Labor Market

5. Human Capital Theory

6. Wage Differentials and Discrimination

7. Migration

8. Minimum Wages

9. Efficiency Wages

10.Trade Unions

11. Unemployment Insurance

Core Literature

The course is based primarily on the following textbooks:

• Wagner, T.; Jahn, E. J. (2004), Neue Arbeitsmarkttheorien, 2nd ed., Lucius & Lucius, Stuttgart.
• Ehrenberg, R.; Smith, R. (2013), Modern Labor Economics, 11th ed., Pearson, Boston.
• Borjas, G. (2012), Labor Economics, 6th ed., McGraw-Hill, Boston.

Further Reading

• Franz, W. (2013), Arbeitsmarktökonomik, 8. Auflage, Springer, Heidelberg, Berlin.
• Cahuc, P., Zylberberg, A. (2004), Labor Economics, MIT Press, Cambridge MA.

Course Materials

Lecture slides and additional course materials are available for download via the University of Bayreuth’s E-Learning platform.

Exam

The course is assessed by a mid-term exam and a 60-minute written exam. Students must register for the exam via Campus Online. Students who are unable to register through Campus Online are asked to contact the Chair directly.

Intended Audience  

Bachelor Economics

• Module areas: SVWL I, SVWL II, IS
• Specialization: Public Management

Bachelor Economics and Development

• Module area: SP B
• Elective specialization modules: SP B
• Specialization PM: Public Management

Bachelor Philosophy & Economics 

• Module area: Ö6 or E6

Tutorial, 1 hour per week

Instructor

 Jana Pera

Content

• The tutorial accompanying the course Labor Economics is closely coordinated with the lecture and is designed to reinforce and deepen students’ understanding of the material covered in class.
• During the tutorial, students work through exercises and problem sets related to the lecture content. The corresponding exercise sheets are made available via the University of Bayreuth’s E-Learning platform.
• Students are strongly encouraged to prepare thoroughly for both the lecture and the tutorial. Adequate preparation will enable them to follow the material more effectively and to actively engage with the course content by asking questions.
• Attendance at both the lecture and the tutorial is recommended to prepare successfully for the mid-term and final exam.
• Further information on the course schedule, organization, and individual sessions is available on the E-Learning platform.

Exam

The course is assessed by a mid-term exam and a 60-minute written exam. Students must register for the exam via Campus Online. Students who are unable to register through Campus Online are asked to contact the Chair directly.

Intended Audience  

Bachelor Economics

• Module areas: SVWL I, SVWL II, IS
• Specialization: Public Management

Bachelor Economics and Development

• Module area: SP B
• Elective specialization modules: SP B
• Specialization PM: Public Management

Bachelor Philosophy & Economics 

• Module area: Ö6 or E6

Type

Lecture, 2 SWS

Lecturer

Prof. Dr. Elke Jahn

Participation

The number of participants for the class is limited to 20 students.

The course will be held in English.

Content

This course is directed at master students interested in the applied micro field, especially labor economics. This course is not purely a labor economics course: it is also a course in empirical modelling and applied econometrics. The tools covered in the course are central to those used in empirical labor economics, as well as other applied microeconomics fields. The focus will be the identification of causal relationships using regression-based analysis. Empirical examples will be drawn from recent work in labor economics. A solid understanding of the various empirical strategies and how they are implemented in “real research” is a key objective of the course. 

The course will be held in English. 

Outline (preliminary)

1. Labour market theory and the German labour market
2. Introduction to applied labour economics
3. Theory of compensating wage differentials
4. Minimum wage
5. Human capital theory
6. Educational economics

Lecture notes

Lecture Notes for this course can be downloaded from the E-Learning server.

Readings

• Background labour economics
• Ehrenberg und Smith (2012), Labour Economics, 11. Ed., Pearson, Boston
• Borjas, G. (2013), Labor Economics, 6. Ed., New York
• Cahuc, P. und Zylberberg, A. (2014), Labor Economics, 2. Ed., MIT Press
• Empirical economics
• Angrist, J.D., Krueger, A.B. (1999), "Empirical Strategies in Labor Economics", in: Ashenfelter, O., Card, D. (ed.), Handbook of Labor Economics, Vol. 3A, Amsterdam: North Holland, 1277-1366.
• Angrist, J.D., Pischke, J.S. (2009), Mostly Harmless Econometrics, Princeton, NJ: Princeton University Press.
• Heckman, J.J., LaLonde,R.J., Smith, J. A. (1999),” The Economics and Econometrics of Active Labor Market Programs, in: Ashenfelter, O., Card, D. (ed.), Handbook of Labor Economics, Vol. 3A, Amsterdam: North Holland, 1865-2097.
• Holland, P.W. (1998), “Statistics and causal inference”, Journal of the American Statistical Association, 81, 945-970.
• Selected papers (can be downloaded from the e-learning server) 

Grading

Grades will be based on a midterm and a final exam.

Target Group 

• Master’s Program Economics (Specialization: Model Theory – Advanced Empirical Economics II; Individual Focus)
• Master’s Program Internationale Wirtschaft und Governance (Specialization: Ökonomische Modellbildung und empirische Analyse – Empirische Wirtschaftsforschung für Fortgeschrittene II; Individual Focus)
• Master’s Program Philosophy & Economics (Economics Electives Modules – Empirical Economic Research)

Type

Exercise, 1 SWS

Lecturer

Christian Kagerl

Contents

The course will be held in English and will take place every other week.    

Description

The exercise course is closely linked to the lecture and supports the students in handing in the assignments. The focus of the exercise class will be on the empirical methods and its underlying assumptions. The corresponding assignments and exercises will be provided on the e-learning server of the University of Bayreuth. It is necessary to attend this class as well as the lecture for passing the course successfully.

Outline (preliminary)

1. Fundamental problem of causal inference
2. Ordinary Least Squares
3. Panel Methods: Difference-in-differences and Fixed Effects
4. Instrumental Variables and Regression Discontinuity Designs
5. Propensity Score Matching
6. Question time

Grading

Grades will be based on a midterm and a final exam.

Target Group 

• Master’s Program Economics (Specialization: Model Theory – Advanced Empirical Economics II; Individual Focus)
• Master’s Program Internationale Wirtschaft und Governance (Specialization: Ökonomische Modellbildung und empirische Analyse – Empirische Wirtschaftsforschung für Fortgeschrittene II; Individual Focus)
• Master’s Program Philosophy & Economics (Economics Electives Modules – Empirical Economic Research)