Course 2026-2027 a.y.

After presenting workers’ labour supply, firms’ labour demand, labour market equilibrium, and the role of labour market institutions, the course examines a range of labour market policies and institutions through a combination of theoretical analysis, empirical evidence, cross-country comparisons, and policy discussions. Particular attention is devoted to the effects of these institutions in both perfect and imperfect labour markets, as well as to their interactions and broader policy implications.

Topics covered include:

1. Overview
2. Minimum wages
3. Unions and collective bargaining
4. Anti-discrimination legislation
5. Regulation of working hours
6. Early retirement schemes
7. Family policies
8. Education and training
9. Migration policies
10. Employment protection legislation
11. Regulation of self-employment
12. Unemployment benefits and active labour market policies
13. Health-related labour policies
14. Payroll taxes

• Describe the main evolutions in OECD labour market institutions over the last decades.
• Explain the main economic models of the labour market and describe their key insights regarding labour supply, labour demand, and labour market equilibrium.
• Identify and interpret the main empirical estimates of the key parameters used in labour market models.
• Discuss the role of labour market institutions and public policies in shaping labour market outcomes.
• Identify empirical contexts that allow researchers to credibly estimate the effects of institutions and public policies on labour market outcomes.

• Develop an ex ante theoretical analysis of the effects of labour market institutions and public policies on employment, wages, and inequality.
• Choose and apply the appropriate economic model to assess the effects of institutions and public policies on labour market outcomes.
• Interpret and critically evaluate empirical evidence on the effects of shocks, reforms, technological change, and globalization on labour markets.
• Use labour economics tools and concepts to analyse real-world policy issues and current labour market developments.
• Compare the effects of different labour market institutions across countries and institutional settings.
• Interact in a constructive way, work effectively in groups, and think critically.
• Communicate economic arguments and policy evaluations clearly and coherently, both orally and in writing.

• Lectures
• Practical Exercises
• Individual works / Assignments
• Collaborative Works / Assignments

The course combines lectures with discussions of empirical evidence, policy issues, and real-world labour market developments. Theoretical models are presented alongside empirical applications and cross-country comparisons in order to help students connect economic analysis with current labour market debates.

The course also encourages active student participation through class discussions and group activities aimed at developing critical thinking, communication, and teamwork skills.

Attending students will be allowed to take two written partial examinations (each accounting for 50% of the final grade). Eligibility for each exam requires a minimum attendance rate of 80%, calculated based on the number of hours taught in class until the date of the exam. Students failing to pass either of the two partial exams will have to take a comprehensive final exam.

To pass the course, students must obtain a grade of at least 18/30 in each written exam.

The written exams consist of a combination of multiple-choice and open-ended questions. Multiple-choice questions are designed to assess students’ understanding of key concepts, theoretical mechanisms, and empirical evidence discussed during the course, while open-ended questions evaluate students’ ability to apply economic reasoning and develop structured arguments.

In particular, the exams aim to assess students’:
(i) ability to describe and discuss the main developments in labour market institutions in OECD countries in light of the topics covered in class;
(ii) understanding of the main economic mechanisms underlying labour market outcomes and public policies; and
(iii) familiarity with the main findings of the empirical literature and the empirical strategies used to evaluate the effects of public policies.

The assessment also includes a group assignment aimed at developing students’ ability to work in teams, discuss economic issues critically, and communicate their analysis effectively.

Non-attending students will only be allowed to take the general exam.

The assessment consists of a written examination covering the entire course syllabus. Students are expected to prepare independently using the required readings and the study materials indicated by the instructor.

The written examination consists of a combination of multiple-choice and open-ended questions. The examination places emphasis on students' ability to study independently, integrate concepts across different parts of the syllabus, and demonstrate a comprehensive understanding of the course material without relying on classroom discussions, in-class activities, or the group assignment. Students are therefore expected to engage critically with the assigned readings, connect theoretical models with empirical evidence, and develop clear, coherent, and well-structured arguments on labour market institutions, labour market outcomes, and public policies.

The course is based on  :

• T. BOERI, J. VAN OURS, The economics of imperfect labour markets, Princeton University Press, 3rd edition, 2021.
• Class material and additional readings/listenings will be uploaded to the Bboard platform of the course.