Good background in microeconomics and in econometrics
The course addresses four major issues. First, how does economic theory a priori conceive labour productivity and its determinants? Second, what are the conceptual and econometric challenges to measure labour productivity and identify its determinants? Third, how and to which extent can wage data inform about labour productivity? Fourth, how can firm-level data be use to gauge and understand labour productivity?
It also exposes topical questions that can be addressed with the above-mentioned theories, models and methods
The aim of the course is to ensure that students can use economic theory and state-of-the art econometrics to assess the determinants and the consequences of labour productivity for individuals, firms and labour markets.
The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Assignments (1/3 of final grade) based on econometric analysis of micro-data
End-of-term written exam (2/3 of final grade) during which students are requested to answer a questionnaire covering the whole set of issues covered by the course
Only end-of-term exam can be repeated (2nd session)
The emphasis of the course is on linking basic theoretical insights with empirical patterns in the labor market, using a combination of methodologies.
Most of course consists of lectures, but there will be a number of problem sets/assignments throughout the semester, which all students must hand in individually (though working in groups is strongly encouraged).
Students are expected to have familiarity with programs like SAS or STATA
1. Labour productivity : the theoretical background; i) Classical economists (Ricardo, Marx) :labour as a quantity ; ii) Human capital theorists (Smith, Schultz, Becker) : investment in education/training can boost labour productivity iii) Beyond human capital: personnel economics (Lazear)
2. Conceptual issues about labour productivity measurement
3. Using individual level (wage) data to estimate labour productivity (the Mincerian tradition)
4. Using firm-level productivity data to estimate labour productivity (the Hellerstein-Neumark Labour Quality Index pro-duction function)
5. Topical issues where labour productivity is key
Becker, G. (1964), Human Capital, NBER, 2ème édition 1975
Hellerstein, J.K., D. Neumar, and K. Troske (1999), Wages. Productivity. and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations. Journal of Labor Economics, 17(3), pp. 409-446
Lazear, E.P. & Oyer, P. (2009), Personnel Economics, in Handbook of Organizational Economics, Princeton University Press [forthcoming]
Vandenberghe, V. (2001), Boosting the employment rate of older men and women. An empirical assessment using Belgian firm-level data on productivity and labour costs, De Economist, 159(2), pp. 159-191
Other references vary for year to year
