LABOUR ECONOMICS

Fall 2021
Code S210009 (6 credits)

LOGISTICS:

Professors Michele Pellizzari

Office: UniMail 5260 (5th floor)
email: michele.pellizzari@unige.ch
Office hours: by appointment

Instructor Eleonora Brandimarti

email: eleonora.brandimarti@unige.ch
Office hours: by appointment

Web page Search “Labour Economics” S210009 in Moodle

Teaching Tuesdays 14:15-16:00: lectures in room MS130

times Thursdays 16:15-18:00: classes in room MR060

OUTLINE OF THE COURSE

This course aims at introducing the students to the economic analysis of the labour
market. The syllabus consists of two parts. The first part (topics 1-3) covers the
foundations of the functioning of the labour market and the determination of its
equilibrium, the second part (topics 4 to 7) discusses a number of important topics in
labour economics. The list of topics might be adapted during the course according to
the needs and interests of the class.

Preliminary list of topics

1. Labour demand
2. Labour supply
3. Labour market equilibrium: unions, search&matching, efficiency wages
4. Education and training
5. Labour migration
6. Discrimination in the labour market
7. Inequality of labour earnings

PREREQUISITES
 A good knowledge of the fundamentals of microeconomics is required. Familiarity
with the basic notions of econometrics is recommended.

TEACHING MATERIAL

The material covered in the lectures is a combination of various sources (textbooks and
published papers from the literature). However, if you wish to check a reference
textbook, the one that is closest to the course is:
• Ehrenberg & Smith, Modern Labor Economics: Theory and Public Policy,
Prentice Hall, 13E.
You can get the book at this link.

Compulsory readings will be assigned to reading groups and are required material for
the final exam. Lecture slides will be made available through the course webpage.
For some topics, the lectures will also cover material from:
• Garibaldi P., 2006, “Personnel Economics in Imperfect Labour Markets”,
Oxford University Press, chapter 7.
• Pissarides C., 2000, “Equilibrium Unemployment Theory”, MIT Press, chapter
1 (1.1 to 1.5).

PROBLEM SETS

Three problem sets will be assigned during the course. They will be made available on
the website one week before the due date. You will have to hand them in at the
beginning of the class before the TA goes through the solutions. No late homework will
be accepted. Working on the problem sets is not compulsory but it is highly
recommended as the questions in the final exam are very similar to those in the problem
sets. Moreover, your grade in the problem sets can help you improve your final mark
according to the grading policy.
The problem sets are self-graded! Once the solutions have been distributed and
discussed in class, you will have to propose a grade for your work and send it to the
TA by a given deadline. We will check the proposed grades and punish severely if
overly generous or inaccurate, otherwise your propositions will be validated.

READING GROUPS

Reading groups of 3 to 4 students, depending on the size of the class, will be organized
to introduce students to the reading of a selected list of academic papers in the field.
The list of papers will be prepared by the teachers in collaborations with labour
economists from the research department of the International Labour Organization
(ILO).
Each group will be assigned one paper to read. Each group will have to prepare a short
video (5 to 10 minutes) to summarize the content of the paper. All group members
should appear and talk in the video.
The teachers, in collaboration with the ILO colleagues, will watch the videos and assign
grades, which can improve your final marks according to the grading policy. A
selection of the best videos will be shown in class during the reading group session.
 All videos are required material for the final exam regardless of whether you participate
in the reading groups and attend the reading group session.

FINAL EXAM

At the end of the course a final exam is required to pass the course. The exam takes
place during the regular exam session according to the official academic calendar of
the Faculty. The exam will consists of both general questions about all the material
covered in the course (including the videos of the papers) and more specific exercises
similar to those of the problem sets. The exam lasts 2 hours.
The text of the exam will be in English but, according to the rules of the University of
Geneva, you can provide answers in either English or French.

GRADING POLICY

Your final grade will be computed according to the following formula:

final mark = max{[0.5 F + 0.25 P + 0.25 R] , F}

where F is your grade in the final exam, P is your grade in the problem sets and R is
your grade in the reading group. Hence, your performance in the problem sets and in
the reading group can only improve your final mark. The above formula is only used
if you hand in all required problem sets and participate in the reading groups. In all
other instances, your final grade is simply your grade in the final exam.

RETAKE EXAM

As usual, a retake exam will be organized around August-September (according to the

official academic calendar of the Faculty) for those who fail in the regular session.
Only the written final exam can be retaken, not the problem sets nor the reading groups.
However, if you have completed these activities during the course, the associated
grades remain valid for the first retake session but are disregarded afterward.