The basic problem of the economy is that of the scarcity of productive resources to satisfy the desires of society. Economics is concerned with the discovery of rules or principles that indicate how decisions about what goods to produce, how to produce them, and who is to receive them can be made in a rational and efficient manner. This problem also characterizes Labor Economics. Labor is one of the scarce productive resources and labor economics deals with the problem of its efficient use and allocation.

The main objective of this subject is to familiarize students with the basic notions, work tools and sources of information and data in this area of Economics, Labor Economics. The Labor Market is complex due to the heterogeneity of the agents that comprise it, as well as the institutions that continuously intervene to correct inefficiencies. Students are intended to understand and deal with this complexity

Data from the economic reality and current issues will be used to present students in class with practical cases with which to delve into the different concepts that are explained in the master classes. The aim is for students to learn by analyzing current economic problems in the Spanish labor market. In this way, they see the subject as something closer, nothing abstract and of great interest.

Labor Economics is an optional subject in the 4th year of the Degree in Economics. It is important to have passed the 2nd year Microeconomics and Macroeconomics courses and that your knowledge is well established.



The competences of the subject are related to the Sustainable Development Goals (SDG) of the UN 2030 Agenda in various dimensions. We review the following:



- SDG 4 QUALITY EDUCATION (targets 4.4 and 4.5). The Labor Economics course studies the importance of education to find a job, improve the standard of living, increase production and gender equality in the labor market.

- SDG 5 GENDER EQUALITY (targets 5.1 and 5.4). The labour economics course studies, in depth, economic models of discrimination in the labor market to understand better the main determinants of existing inequalities, and to be able to apply effective measures to reduce and/or eliminate discrimination against women. Through activities with real data, the analysis of gender differences in different variables such as wages, occupation, activity sector, working hours, type of contract, etc. is addressed. This course also studies production models in the home to analyze, from an economic point of view, decisions in the home and, with data from the Time Use Survey, activities are carried out that allow students to investigate how distribute household chores and childcare between spouses.

- SDG 8 DECENT WORK and ECONOMIC GROWTH (targets 8.8 and 8.12). This course studies models of collective bargaining and the role of unions in the labor market. Measures aimed at creating jobs are analyzed. The different types of contract and the salaries of all workers and demographic groups of interest such as women and youth are analyzed. The situation of young people in the labor market and the policies that have been put in place to reduce youth unemployment are analyzed.

The COMPETENCES that are developed in the subject:



C1. Identify the economic aspects of labor market problems.

C2. Adapt the usual concepts and techniques of economic analysis to the analysis of the labor market.

C3. Understanding and use of the scientific method: identification of relevant variables, economic and econometric assumptions about the relevant variables, behavioral assumptions, formulation of hypotheses, confrontation of the predictions of economic theory with empirical evidence.

C4. Ability to select and manage information and labor documentation.

C5. Familiarize the student with the use of econometric instruments for the empirical analysis of economic problems.

C6. Ability to interpret data and socioeconomic indicators related to the labor market.

C7. Ability to transmit and communicate in writing and orally using the appropriate terminology and techniques.

C8. To promote teamwork.

C9. Encourage public exposure of issues and debate.



The expected LEARNING OUTCOMES of the course are:



R1. Know and describe how the main labor market variables are calculated.

R2. Know the main sources of information and data on the labor market.

R3. Interpret the assumptions and fundamentals of economic models designed to explain the different economic phenomena of the labor market (employment, unemployment, human capital, etc).

R4. Analyze the main institutions that operate in the determination of wages in the labor market, such as the minimum wage and the unions.

R5. Use statistical packages for the empirical analysis of databases related to the labor market.

R6: Understand the basic concepts of how policies aimed at the labor market should be evaluated.



The TRANSVERSAL COMPETENCES OF THE SUBJECT are:



T1. Identify relevant economic information sources and their content.

T2. Learn the use of statistical and computational tools for data analysis.

T3. Read and communicate professionally in more than one language, especially English.

T4. Oral presentation of papers.

T5. Learn to debate in public.

Topic 1: Introduction to Labor Economics and the Spanish Labor Market

Topic 2: Supply, demand and equilibrium in the Labor market - The basic model.

Topic 3: Investment in Capital

Topic 4: Salary differences

Topic 5: Discrimination in the labor market: types and theories.

Topic 6: Institutions in the Labor Market

Topic 7: Unemployment

Topic 9: Active Employment Policies and their evaluation.

The methodology to be used makes use of both theoretical and practical classes. In the theoretical classes, the topics of the program are exposed. In the practical classes, there will be exercises, debates on topics, and they will go to the computer room where the students will carry out, in groups, a task analyzing real data on the Spanish economy.

• Final Assessment System
• Tools and qualification percentages:
  • Multiple-Choice Test (%): 40
  • Realization of Practical Work (exercises, cases or problems) (%): 15
  • Team projects (problem solving, project design)) (%): 30
  • Exhibition of works, readings ... (%): 15

The subject will be evaluated through mixed evaluation for those who so wish. Several practices of a diverse nature will be carried out: exercises, discussions of topics and homework will be carried out (60% of final grade). Apart from the practices, the theoretical content will be evaluated through two partial exams (40% of final grade, 20% each one).





Note: The partial exams allows the exemption on the final exam for the students who pass both of them. Whoever does not pass any of them must go to a final exam with all the theoretical and practical contents.



For those who do NOT opt for the mixed evaluation:



They must take a final exam that will correspond to 100% of the final grade. This exam will assess the skills developed in the subject. Therefore, the final exam may include questions related to both the theoretical part of the subject and the practices carried out in class.

The tests will be face-to-face. In the event that for non-academic reasons the exams cannot be taken in person, the type of exam tests may be modified. Such change will be announced to students in advance.

The student must take a final exam that will correspond to 100% of the final grade. This exam will assess the skills developed in the subject. Therefore, the final exam may include questions related to both the theoretical part of the subject and the practices carried out in class.

The tests will be face-to-face. In the event that for non-academic reasons the exams cannot be taken in person, the type of exam tests may be modified. Such change will be announced to students in advance.

McConnell C. R., S. L. Brue y D. Macpherson (2007): Economía Laboral. Editorial McGraw-Hill.

George Borjas (2013), Labor Economics, 6ª edición. Editorial McGraw-Hill.

Material uploaded to MOODLE by the teacher

Entries/posts from various sources that will be discussed in class.

Basic bibliography

McConnell C. R., S. L. Brue y D. Macpherson (2007): Economía Laboral. Editorial McGraw-Hill.



George Borjas (2013), Labor Economics, 6ª edición. Editorial McGraw-Hill.



Material uploaded to MOODLE by the teacher



Entries/posts from various sources that will be discussed in class.

In-depth bibliography

Fernández, M. V. Montuenga y D. Riveiro (2009): El mercado de trabajo en España: Otros aspectos relevantes, Ediciones Lóstrego.

Fina, L. (2001): El reto del empleo, editorial McGraw-Hill.

Layard, R. S. Nickell y R. Jackman (1996): La crisis del paro, Alianza editorial S. A., Alianza Economía, Madrid.

Journals

Papeles de Economía Española, varios números.
Ekonomiaz, varios números.

Web addresses

Bank of Spain: http://www.bde.es/
European Centra Bank: http://www.ecb.int/
World Bank: http://www.worldbank.org/
Eurostat: http://europa.eu.int/comm/eurostat/
Eustat: http://www.eustat.es/
International Monetary Fund: http://www.imf.org/
Spanish Statistical National Institute (INE): http://www.ine.es/
OECD: http://www.oecd.org/home/