This course applies microeconomic theory to the market for labor.  The first half of the course focuses on building the theory of labor markets from the underlying behavior of individuals (supply) and firms (demand).  Along the way, other determinants of wages and employment, such as education, training and technological change , are treated. We look at competitive as well as non-competitive labor markets. 

The second half of the course applies the theory to specific problems of policy interest.  These include discrimination, unions, unemployment, and the distribution of income.  Of particular interest is the confirmation (or refutation) of the theory by empirical observations.  The effects of various policies (such as minimum wages, taxes on earnings, transfer payments, subsidies to education,  occupational licensing, rules governing union bargaining) are also studied.

Course requirements: Your course grade will be based on a midterm exam (25%),  a final exam (50%), and five graded problem sets (25% in total)..

Problem Sets: Doing problems is an excellent way to learn economics.  Each week I will try to put some problems on the website to give you practice. I encourage you to discuss these problem with your fellow students.  The answers will be posted.  There will also be five graded problem sets which will be pledged.  These will count a total of 25% of your grade. 

There are additional UVa-only syllabus items for this course. Click here to view all the public and UVa-only syllabus items. This link is restricted to UVa-members with Netbadge authentication.