5170 - EUROPEAN LABOUR MARKETS

The purpose of the course is to provide the basic analytical tools which allow students to understand the role played by different institutions in shaping the labour market. The course highlights the redistributive effects of institutions operating in imperfect labour markets, subject to market failures. The course also takes into account that institutions rarely operate in isolation. This provides three reasons for the existence of institutions: i) remedying market failures, ii) achieving some redistributive goals, and iii) remedying potential negative side effects of other institutions. From a positive standpoint, the effects of each institution on the labour market are investigated by considering not only their direct effects on employment, unemployment and wages, but also their indirect effects, that is, the effects which are mediated by the presence of other institutions. Much attention is placed on precisely defining institutions and measuring them along their relevant dimensions, (e.g., eligibility for unemployment benefits, level of the benefits, maximum duration for which they can be provided, etc.) since accuracy in describing the way in which the institution operates and the goals it pursues is essential in characterizing its effects on the labour market. Statistical information on the evolution over time of these institutions is also provided, whenever possible, for all OECD countries. Contrary to common wisdom, there have been considerable variations in these institutions over time.

• Institutional Asymmetries between Europe and the US
• Employment Protection: theory and empirical evidence
• Non-employment benefits and labour supply: theory and empirical evidence
• Employment-conditional incentives and welfare-to-work: theory and facts
• Labour Taxation and Employment
• Institutional trade-offs and political constraints to reforms
• Minimum Wages, Unions and the structure of Collective Bargaining Press 
• Human capital
• Migration policy and the welfare state

Written exam.

Selected readings will be provided at the beginning of the course. A textbook is under preparation. The compulsory readings are mainly in the form of powerpoint presentations, handouts and recent articles from scientific journals.  
A complete set of readings will be available on the website IEP - Bacheca on line, or at SID - Servizio Informazioni Didattica - Institute of Economics, via Gobbi 5, Room 313.