1.

Course Title: ECON 322: Labour Economics

2. Course aim
The aim of the Labour Economics course is to introduce students to the economic analysis of the
Labour market, focusing on understanding the determinants of wages, employment, and human
capital investment. The course aims to provide students with a framework to analyze Labour
market outcomes, government policies' impact on individual decisions, Labour demand and
supply dynamics, wage differentials, human capital theory, Labour market equilibrium, and
factors influencing unemployment. Additionally, the course aims to equip students with the
necessary analytical skills to comprehend the incentives that drive employer and employee
behavior within the Labour market.
3. Expected Learning Outcome
After the course the students will be able to:
i. Describe the contents and dimension of Labour economics.
ii. Explain the peculiarity of Labour.
iii. Distinguish between Labour market and commodity market
iv. Identify Factors influencing Labour productivity
v. Apply principles of Labour economics to increase employment opportunities

4. Course status: Core

5. Credit rating: 9
6. Total hours spent: 45
7. Course Contents
I. INTRODUCTION TO LABOUR ECONOMICS
 Meaning of economics
 An overview of the Labour market and its importance to the economy
 Factors of production (land, Labour, capital and entrepreneurship
 The peculiarity of Labour
 Labour market and characteristics of Labour market
 Peculiarities of Labour Market
 Key Labour Market Actors
 Positive and normative in Labour economics
 Key Labour market indicators and measures
 Differences of Labour market and commodity market
 The types of Labour problems
 Labour market institutions and policies
II. LABOUR SUPPLY
 The determinants of Labour supply, (demographics, education, and social factors)
 Measuring the Labour Force
 The law of supply
 The elasticity of Labour supply
 The concept of opportunity cost
  The impact of government policies
 The Budget Constraint
 The Hours of Work Decision
 The Labour Supply Curve
 Labour Supply over the Life Cycle
III. LABOUR DEMAND
 The determinants of Labour demand, ( technology, wages, and production)
 The law of demand
 The elasticity of Labour demand
 Marginal productivity of Labour theory
 Productivity and misunderstanding of Labour productivity
 Factors influencing Labour productivity

IV. LABOUR MARKET EQUILIBRIUM

 Overview of Labour Market Equilibrium
 Market supply and demand
 Wage determination in competitive markets
 Efficiency and equity implications of Labour market equilibrium

V. HUMAN CAPITAL AND WAGE DETERMINATION

 Meaning of Human Capital
 Uses of human capital
 Sources of human capital
 Investment of Human capital education and training
 Human capital investment
 Earning differentials
 Theories of wage determination (i.e supply and demand, bargaining, and human capital)
The role of education, training, and experience in the Labour market
 Wage and wage issues
 Empirical evidence on the returns to education and training

VI. LABOUR MARKET DISCRIMINATION AND INEQUALITY

 The causes and consequences of Labour market discrimination based on (race, gender,
employer, employee, customer, statistical )etc
 The concept of inequality
 The role of LABOUR market institutions in reducing wage inequality
 The measurement of inequality and poverty in the Labour market
 The role of education and training in reducing wage inequality:
VII. UNEMPLOYMENT AND LABOUR MARKET DYNAMICS
  The causes and consequences of unemployment, including cyclical and structural factors
 Labour market dynamics, including turnover, job search, and matching
 Job Search

VIII. UNIONS OF THE LABOUR MARKET

 The history and evolution of Labour unions
 Determinants of Union Membership
 The role of Labour Labour unions on productivity
 Monopoly Unions
 Policy Application: Unions and Resource Allocation
 Efficient Bargaining
 Strikes
 Union Wage Effects
 Nonwage Effects of Unions

IX. LABOUR MARKET POLICIES

 The role of government policies in regulating and promoting the Labour market,
including minimum wage laws, unemployment insurance, and training programs,
discrimination and inequality etc
 The impact of globalization and international trade on Labour markets
 The role of unions and collective bargaining in the Labour market
 Policies to reduce unemployment and improve Labour market outcomes
X. CONTEMPORARY LABOUR MARKET ISSUES
 Emerging trends in the Labour market, such as the gig economy and platform work
 The impact of technological change and automation on the Labour market
 Policy challenges and opportunities in the changing Labour market

8. Teaching and learning activities/mode of delivery

Lectures, seminars/tutorials/group work, Case Studies and independent study

9. Assessment: By continuous Assessment (40%) and by Examination (60%).

Presentation (10%)
Times Quiz -2 averages (5%)
Class activities/assignments (Several)-Average-10%
Mid test (15%)
UE (60%)
Attendance (70%)

10. Reading List:

Ehrenberg RG, Robert Smith. (2008), Modern Labour Economics; Theory And Public Policy,
10th Ed, United Kingdom, Addison Wesley
Mallier AT, Thomas Anthony, Shafto C (1989), Economics of Labour Markets and
Management, United Kingdom, NelsonThormes Ltd
Sharma (2006) Labour Economics, India, Amol Publication,
Goldin, C., & Katz, L. F. (2010). The race between education and technology. Harvard
University Press.

Freeman, R. B. (2014). Mismatch: How many workers with a bachelor's degree are overqualified
for their jobs? NBER Working Paper No. 19328.

Blau, F. D., & Kahn, L. M. (2017). The economics of gender. MIT Press.

England, P. (2010). The origins and evolution of occupational sex segregation: A framework for
understanding its effect on the gender wage gap. In Handbook of Labour Economics
(Vol. 4, pp. 205-256). Elsevier.

De Loecker, J., & Eeckhout, J. (2017). The rise of market power and the macroeconomic
implications. NBER Working Paper No. 23687.

Heckman, J. J. (2011). The economics of inequality: The value of early childhood education.
American Educator, 35(1), 31-47.

Autor, D., & Salomons, A. (2018). Polarization and structural change. In Handbook of
LABOUR, Human Resources and Population Economics (pp. 2215-2290). Springer.

Nwachukwu, J. C. (2014). Labour market issues and economic growth in Nigeria: An overview.
Journal of Economics and Sustainable Development, 5(15), 1-10.

Maré, D. C., & Wittenberg, M. (2017). Minimum wage non-compliance in South Africa: Who is
affected and what are the effects? Development Southern Africa, 34(6), 641-657.

Ojede, A. (2021). The impact of corruption on income inequality in Africa. Economic Analysis
and Policy, 70, 115-127.