EC5061 - Labour Economics (2026/27)
| Module specification | Module approved to run in 2026/27 | ||||||||||
| Module title | Labour Economics | ||||||||||
| Module level | Intermediate (05) | ||||||||||
| Credit rating for module | 15 | ||||||||||
| School | Guildhall School of Business and Law | ||||||||||
| Total study hours | 150 | ||||||||||
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| Assessment components |
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| Running in 2026/27(Please note that module timeslots are subject to change) |
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Module summary
This module explores key theoretical and empirical issues in labour economics focussing on how labour market functions, the role of institutions, policies and current issues.
A range of topics such as labour demand and supply, wage determination, employment, human capital development, migration and discrimination are analysed using recent empirical evidence. It examines current policy debates related to minimum wage, tax, welfare, migration and labour market inequalities.
It encourages students to reflect and draw on their diverse socio-cultural background, education and work experiences.
The aims of the module are:
1. You will acquire knowledge and understanding of economic theory, applications, and contemporary labour market issues.
2. You will analyse empirical evidence and evaluate labour market policies, such as the minimum wage, welfare and tax programmes and immigration restrictions.
3. You will critically assess how gender, ethnicity, race and migration influence labour market outcomes in terms of pay, labour supply, employment and unemployment.
4. You will develop a range of transferrable and subject specific skills such as: subject research; written communication; review and evaluation of available literature and evidence; quantitative analysis; critical thinking; problem solving; reflection
Prior learning requirements
EC5063 Applied Microeconomics
Available for Study Abroad? YES
Syllabus
Introduction: LO1
An overview of labour markets, definitions and recent trends
Labour supply: LO1 and LO4
Models of individuals and households to examine the workers utility maximisation subject to budget constraint and decision between work and leisure. Impact of wage changes on labour supply and income and substitution effects.
Examination of the determinants of labour supply and the impact of work incentives, recent evidence on employment and unemployment in the UK and US.
Labour demand: LO1 and LO4
Firm’s demand for labour, the production function and productivity.
Application of isoquants and isocosts and derivation of labour demand.
Labour market: LO2 and LO4
Wage determination and labour market equilibrium in competitive labour markets.
Analysis of impact of minimum wage, taxes, different welfare benefits and external shocks such as natural disasters on the labour market in terms of wages and employment, with reference to examples from the UK and US.
Human capital: LO3 and LO4
Human capital theory and Schooling Model.
Assessment of the effects of education and training on earnings, employment and labour market outcomes.
Graduate labour market and recent empirical evidence in the UK and US
Female labour force participation and supply: LO3 and LO4
Examination of recent trends and factors influencing female labour supply and participation in the UK and US.
Labour market discrimination: LO3 and LO4
Definition and different types of discrimination in labour market.
Theoretical “Taste Model” of Discrimination” and impact of discrimination on wages, employment and profit.
Analysis of recent trends in gender and ethnic discrimination and pay gaps in selected countries such as the UK, USA and EU.
Occupational and industrial segregation, and the effectiveness of anti-discrimination legislation in selected countries such as the UK, USA and EU.
Labour migration and global labour mobility: LO3 and LO4
Examination of recent trends in migration in the UK and US.
Analysis of impact on native labour market in terms of employment and pay.
Theory of labour migration and characteristics of migrant workers.
Evaluation of economic costs and benefits to individuals, firms, and the economy.
Balance of independent study and scheduled teaching activity
Students’ learning is organised around formal direct contact time with the teaching team, and reflective independent learning. Student formal contact time is normally 3 hours per week consisting of 2 hours lectures and 1 hour seminar. Lectures are interactive and deliver core subject knowledge, theory and analysis in labour market economics. Seminars are student centred and emphasise student learning through discussion, solving economic problems and formative feedback.
Students are expected to complement the 'formal' learning activity with independent reading, engaging with research published in academic journals, participating in class discussions, solving set problems and preparing for coursework assessment.
Transferable skills are developed in lectures and seminars, and through independent directed learning and assessment.
The module makes extensive use of blended learning through the use of virtual learning environment platform, WebLearn, where module handbook; lecture recordings; lecture slides; seminar questions; guideline answers to seminar questions; assessment strategy; assessment and grading criteria; coursework brief; and other relevant learning materials are available.
A feed-forward strategy is used to provide early feedback to students to improve their final coursework submission. Use of the feed-forward strategy and class discussion of detailed grading and assessment criteria creates an opportunity for dialogue between students and staff and promote shared understanding of the basis on which academic judgements are made.
Students are encouraged to reflect and draw on their diverse socio-cultural backgrounds, education and work experiences and demonstrate cultural, ethical and socioeconomic awareness in their coursework assessment, where appropriate.
Students are encouraged to engage with the career development and employment skills resources within London Metropolitan's Gateway to Success Weblearn unit.
Learning outcomes
On successful completion of this module students will be able to:
1. Demonstrate knowledge and a systematic understanding of labour market economics covering theory and application with regards to demand and supply of labour.
2. Develop a solid understanding of wage determination and employment and critically evaluate the impact of minimum wage, taxes, welfare benefits and external shocks on equilibrium wage and employment in the labour market.
3. Examine, provide evidence and evaluate qualitative and quantitative data to understand and critically evaluate a wide range of labour market theories and issues with reference to gender and race differences in labour force participation and supply; discrimination in terms of employment and gender and racial pay gap; human capital; and labour migration.
4. Demonstrate a range of transferrable and subject specific skills: subject research; written communication; review and evaluation of available literature and evidence; data and quantitative analysis; critical thinking; problem solving; reflection and socioeconomic, cultural and ethical awareness.