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DRPS : Course Catalogue : School of Economics : Economics

Undergraduate Course: Unemployment and Labour Market Dynamics (ECNM10100)

Course Outline
SchoolSchool of Economics CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 10 (Year 4 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryIn this course we will explore the economics of frictional labour markets, and their implications for unemployment, imperfect labour market competition, wage inequality, and labour market dynamics. From a theoretical perspective, we will cover two canonical approaches to labour market frictions: models of wage posting, and models of search and matching. These will involve some introductory dynamic economic theory that is somewhat advanced for the undergraduate level. For this reason, the course is likely to be particularly useful to students who intend to pursue postgraduate work in economics. We will also apply these models to relevant empirical analogues¿for example, the behaviour of labour market flows, the Beveridge curve, and so on.

The course is taught through a programme of lectures and tutorials. Learning-by-doing, through problem solving and discussion of exercise sets, is an important ingredient of the course.
Course description Amongst other readings we will draw on:

Pissarides, C., (2000) Equilibrium Unemployment, MIT Press, Cambridge, MA.

Rogerson, R., R. Shimer and R. Wright (2005) "Search Theoretic Models of the Labour Market: A Survey",
Journal of Economic Literature, 43(4), pp. 959-988.

There will be homework exercises, similar in nature to exam questions. We will discuss solutions in the tutorials.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Topics in Microeconomics (ECNM10070) AND ( Economics 2 (ECNM08006) AND Statistical Methods for Economics (ECNM08016)) OR ( Probability (MATH08066) AND Statistics (Year 2) (MATH08051)) OR Data Analysis for Psychology in R 2 (PSYL08015)
Prohibited Combinations Other requirements None
Information for Visiting Students
Pre-requisitesVisiting students must have an equivalent of at least 4 semester-long Economics courses at grade B or above for entry to this course. This MUST INCLUDE courses in Intermediate Macroeconomics (with calculus); Intermediate Microeconomics (with calculus); Probability and Statistics; and Introductory Econometrics. If macroeconomics and microeconomics courses are not calculus-based, then, in addition, Calculus (or Mathematics for Economics) is required.
High Demand Course? Yes
Course Delivery Information
Academic year 2022/23, Available to all students (SV1) Quota:  None
Course Start Semester 2
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 200 ( Lecture Hours 20, Seminar/Tutorial Hours 4, Summative Assessment Hours 3, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 169 )
Assessment (Further Info) Written Exam 85 %, Coursework 15 %, Practical Exam 0 %
Additional Information (Assessment) Class exam (15%)«br /»
Degree Exam in April/May (85%)«br /»
Class exam will take place in week 11
Feedback Homework assignments with solutions discussed in tutorials.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S2 (April/May)2:00
Resit Exam Diet (August)2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. A knowledge and understanding of key concepts, issues and models of unemployment and labour market dynamics, along with policy implications of those models and a deeper understanding of recent research activity.
  2. Research and investigative skills such as problem framing and solving and the ability to assemble and evaluate complex evidence and arguments.
  3. Communication skills in order to critique, create and communicate understanding and to collaborate with and relate to others.
  4. Personal effectiveness through task-management, time-management, dealing with uncertainty and adapting to new situations, personal and intellectual autonomy through independent learning
  5. Practical/technical skills such as, modelling skills (abstraction, logic, succinctness), qualitative and quantitative analysis.
Reading List
Amongst other readings we will draw on:

Pissarides, C., (2000) Equilibrium Unemployment, MIT Press, Cambridge, MA.

Rogerson, R., R. Shimer and R. Wright (2005) "Search Theoretic Models of the Labour Market: A Survey",
Journal of Economic Literature, 43(4), pp. 959-988.
Additional Information
Graduate Attributes and Skills Not entered
KeywordsNot entered
Course organiserProf Michael Elsby
Tel: (0131 6)50 8369
Course secretaryMiss Becky Guthrie
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