ECONOMICS OF LABOUR AND WELFARE

The Economics of Labour and Welfare is in the class of core educational courses of the program and it is meant to provide the students with the basic knowledge of labour economics and welfare issues. It is part of the set of economics courses of the program which shape the economic background and competences of students on economic problems, so that students can gain understanding of the global challenges and the economic policies enacted by governments but also by the private sector . The course will deal with the major concepts used in labour economics and in welfare economics.

Intended learning outcomes in terms of:
1. Knowledge
The course will provide the students with a comprehensive understanding of labour market behaviour (by workers and firms), demand and supply of labour.
To gain insight of important phenomena such as unemployment and formation of human capital.
To learn about the insurance properties, for workers and their families, of the welfare systems in Europe.
To learn the main concepts behind labour market policies
2. Applied Skills
Students will become familiar with the concepts of labour and welfare
Students will know how to read the appropriate related data in international publications (such as the World Bank or the OECD)
Students will know how labour market and welfare policies operate and their effects
3. Critical thinking
Students will be required to discuss the pros and cons of the different labour market models
Students will discuss the data on labour market and welfare
Students will know how to compare the different labour market policies and welfare policies

Some basics notion from "Introduction to Economics", such as the operating of markets (demand and supply), marginal benefits and marginal costs.

The course will start with a general introduction explaining also how to deal with simple statistical tools which allow students to read the labour and welfare statistics. We will then explore the labour market studying both the supply of labour by workers and the demand of labour by firms and finally the resulting level of occupation and the equilibrium wage. We will move on to the description of the Human Capital Theory. The course will briefly discuss the effects of immigration on local labour markets.
The second part will be devoted to look at the role of affirmative actions, minimum wages law and job protection legislation, to move to the forms of insurance such as unemployment insurance and other welfare provisions in the area of pensions and social security.
A final discussion on welfare systems in Europe will follow.

George J. Borjas, Labor Economics, 7th Ed., McGraw Hill International, 2016, ISBN 978-1-25925236-5
A detailed set of chapters and pages will be available on the dedicated Moodle platform.
Other material which constitute compulsory readings for the course will be published on the Moodle page.

The assessment consists of a closed-book written examination at the end of the course, comprising both multiple-choice and open-ended questions. The maximum score for each question is specified next to it.
The minimum passing grade is 18/30; the maximum achievable grade is 30 cum laude (30L), awarded for a fully correct exam. In the open-ended questions, students must demonstrate that they have acquired the knowledge and skills regarding the core concepts of labor economics and welfare economics covered throughout the course.

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

The final grade is expressed on a 30-point scale and corresponds to the total sum of points awarded across the multiple-choice and open-ended questions in the written examination. Assessment of open-ended responses will consider conceptual accuracy, analytical rigor in describing labor and welfare models, and the ability to read and interpret statistical data and social policies covered in the course.

The grade breakdown is defined as follows:

Grades in the 18–22 range (Sufficient): Elementary yet sufficient understanding of core labor market concepts (supply, demand, equilibrium) and basic welfare provisions. Adequate ability to read and interpret basic statistical data and metrics regarding labor and social phenomena. Sufficient clarity in open-ended answers, despite limited capacity for independent elaboration.

Grades in the 23–26 range (Satisfactory/Good): Good knowledge of theoretical models (Human Capital Theory, impact of migration) and welfare mechanisms (unemployment insurance, pensions, minimum wage laws). Adequate ability to analyze welfare policy instruments and connect economic concepts with empirical statistical facts. Well-structured open-ended answers free from major conceptual errors.

Grades in the 27–30 range (Very Good/Excellent): In-depth, comprehensive, and rigorous knowledge of both labor economics theory and European welfare system structures. Strong analytical skills in evaluating public policies (affirmative action, job protection, social security) and statistical evidence. Excellent clarity, independent critical synthesis, and precision in open-ended responses.

30 cum laude (Outstanding): Flawless mastery of the course material, demonstrated through full marks in multiple-choice questions and exceptional critical maturity, analytical rigor, and clarity in all open-ended responses.

The course adopts an integrated teaching approach that combines conventional lectures with active learning strategies.
Specifically, teaching activities include:

Lectures: dedicated to introducing and thoroughly explaining the contents of the course.

Interactive classroom activities: use of real-time audience response tools (such as Wooclap) to check students' understanding of key concepts in real time, run quick exercises, and encourage active class participation.

Guided class discussions: structured discussions focused on specific topics, labor market stylized facts, and academic research papers, aimed at developing students' critical thinking and analytical skills.

There will be a moodle platform available for the students to enrol during the course. All course materials will be made available this way.

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development