Course content

The course includes analyses of the functioning of the labour market in a modern society and how the adjustment in the labour market affects important economic factors. Within the course both the effects of different economic policy and optimal labour market policy are discussed. The course consists of both theoretical analyses and central results from empirical analyses regarding the important factors in the labour market.

Learning outcome

Knowledge

You learn

• how wages are determined within different models for wage bargaining and models for efficiency wages.
• how the equilibrium unemployment is determined in a closed and in an open economy and how this can be affected.
• the importance of institutional arrangements and economic policy in determining wages and equilibrium unemployment.
• how different kinds of shocks affect actual unemployment.

Skills

You should be able to

• explain different theories of wage setting and unemployment determination.
• explain the importance of institutional arrangements for wage setting and unemployment determination.
• discuss, strictly scientific, why unemployment is permanently higher in some countries as compared with other countries.
• conduct your own theoretical and empirical analyses of wage and employment determination.

General competence

You should be able to

• read and understand reports and research articles dealing with issues discussed in the course
• use the content of the course in your own academic work like your master thesis

Learning methods and activities

4 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term. The course is an optional master's course, and is not taught every autumn semester. Check www.ntnu.edu/econ. Students enrolled in ISØ's master programs can take the course any semester.

Compulsory assignments

• Obligatory course work

Further on evaluation

Approved compulsory activity applies to later semesters.

Specific conditions

Recommended previous knowledge

Compulsory courses in Master of Science in Economics

Required previous knowledge

None.

Course materials

Announced at the beginning of the term.

Credit reductions