Semester: III/IV

Preamble
This four credit course sheds light on a range of labour market issues. It captures the interplay of various factors in the labour market by describing demand/supply aspects, wages, employment, unemployment, the cost of labour, workers’ participation and impact of new labour policies in the labour market.

1. Nature of the Labour Market  (8 hours)
Concept of labour market, Characteristics, Types, Search in labour markets, The theory of Human Capital, Investment in Human Capital, Costs and life-time benefits to education

2. Micro and Macro Approaches in Labour Markets (16 hours)
The theory of labour demand; time period and types of markets, Industry demand for labour, Determinants of labour demand, The theory of supply, Work-leisure choice in indifference curves, Budget constraints, Utility maximization, Backward-bending labour supply curve and its applications, Classical,  Neo-classical  and Keynesian theory of labour markets, The inflation-unemployment trade-off, Nominal Rigidities.

3. Wage Issues in Labour Markets  (12 lectures)
Theories of Wages, Wages in different markets, Wage structure and components of wages, Share of wages, Distribution and Inequality of wage income, Male-female wage differentials, Inter-Sectoral wage differentials, Contract labour, Properties of contractual wages, Wages and incomes policy , Wage and output relations in India.

4. Labour Markets in India (12 lectures)
Linkages in labour markets, Role of risk, Information and incentives, Dualism and segmentation, Labour market rigidities and flexibilities,  Employee turnover, Migrant labour, State and labour markets, Impact of trade unions on productivity and wages, Minimum wages, Social security, Occupational safety and security, Impact of liberalization and globalisation.