• Introduction: The labor market; some basic concepts of labor economics; importance of studying labor economics; positive and normative economics; micro and macro labor economics.
  • The functioning of the labor market: The labor market; labor force participation: concept, measurements, trends; un- and under-employment: concept and measurements; the demand for labor; the supply of labor; the determination of wage; applications of the theory.
  • The demand for labor: Profit maximization; labor demand in the competitive labor market; the short-run demand for labor; labor demand in the long run; monopsony in the labor market; policy application: effects of employer payroll taxes and wage subsidies.
  • Labor demand elasticities : The own-wage elasticity of labor demand; the cross-wage elasticity of labor demand; policy application: effects of minimum wage laws; applying concepts of labor demand elasticity to the issue of technological change; international trade and the demand for labor; gains from trade and labor market implications.
  • Quasi-fixed labor costs and their effects on labor demand: Nonwage labor costs; the employment/hours trade-off; policy analysis: the over-time pay premium, part-time employment and mandated employee benefits; firms’ labor investments and the demand for labor; the multiperiod demand for labor; general and specific training; hiring investments.
  • Supply of labor: A theory of decision to work; analysis of the labor/ leisure choice; policy applications: budget constraints with spikes, programs with net wage rates of zero, subsidy programs with positive net wage rates; monetary and time costs of working; the theory of household production; choice of household work, market work, and leisure; joint labor supply decisions within the household; life-cycle aspect of labor supply; policy application: child care and labor market.
  • Compensating wage differentials: Job matching; hedonic wage theory and the risk of injury and employee benefits layoffs.
  • Investments in human capital: education and training: The basic model; the demand for higher education; post schooling investments; cobweb model of labor market adjustments; signaling model; hedonic model of earnings and educational level.
  • Worker mobility: migration and turnover: The determinants of worker mobility; geographic mobility; policy application: restricting immigration; employee turnover and job matching.
  • Pay and Productivity: Motivating workers; productivity and the basis, level and sequencing of pay; application of the theory: why do earnings increase with job tenure? Why do large firms pay more? Monopsonistic behavior by employers.
  • Discrimination in the Labor Market: Measured and unmeasured sources of differentials in earnings; theories of market discrimination; government interventions to end discrimination.
  • Unions and the labor market : Union structure and membership; constraints on the achievement of union objectives; activities and tools of collective bargaining; the theory of union wage effects.
  • Inequality in Earnings: Measuring inequality; underlying causes of inequality; Lorenz Curves and Gini Coefficients.
  • The labor economics of Bangladesh: Labor market issues in developing countries, including Bangladesh: seasonality in agriculture, different types of labor contracts, market imperfections; division of labor by gender; child labor; employment and wage determination in Bangladesh; history of wage setting institutions; wage growth and productivity; trends in employment and unemployment; formal and informal sector employment; education and manpower; privatization and labor market; labor market policies.
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