Labor Economics

Labor economics is a branch of applied microeconomics that examines the dynamics of the market for wage labor. It analyzes the behavior of workers (as suppliers of labor) and employers (as demanders of labor) to understand the determination of wages, employment levels, and working conditions. Key areas of study include human capital investment, labor unions, unemployment, income inequality, discrimination, and the effects of government policies like minimum wage laws and unemployment benefits on the workforce.

1. Introduction to Labor Economics
   1. Defining the Labor Market
      1. Characteristics of Labor Markets
      2. Distinction from Other Markets
      3. Types of Labor Markets
   2. Key Questions in Labor Economics
      1. Determinants of Wages
      2. Causes of Unemployment
      3. Role of Education and Skills
      4. Impact of Policy Interventions
   3. The Actors in the Labor Market
      1. Workers
         1. Labor Force Participation
         2. Demographic Characteristics
      2. Firms
         1. Labor Demand Decisions
         2. Production Objectives
      3. Government
         1. Regulation and Legislation
         2. Policy Objectives
   4. Review of Core Microeconomic Principles
      1. Optimization and Choice
         1. Utility Maximization
         2. Profit Maximization
      2. Equilibrium Analysis
         1. Market Equilibrium
         2. Comparative Statics
      3. Demand and Supply Frameworks
         1. Labor Demand Curve
         2. Labor Supply Curve
      4. Elasticity
         1. Wage Elasticity of Labor Demand
         2. Wage Elasticity of Labor Supply
      5. Production and Cost Functions
         1. Short-Run vs. Long-Run Production
         2. Marginal and Average Costs