VS24VP022 Labour Market Theory

Faculty of Public Policies in Opava
Summer 2025
Extent and Intensity
26/0/0. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Pavel Tuleja, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Pavel Tuleja, Ph.D.
Institute of Public Administration and Social Policy – Faculty of Public Policies in Opava
Contact Person: Ing. Lucie Kamrádová, Ph.D.
Prerequisites
Basic knowledge of microeconomics and macroeconomics: Students should have a basic understanding of microeconomic and macroeconomic principles, including supply and demand, market equilibrium, price functions, and basic macroeconomic indicators.
Ability to work with economic data: Students should be able to work with basic economic data, including its collection, interpretation and use for economic analysis.
Knowledge of basic statistics: Students should have a basic understanding of statistics and probability to enable them to analyse economic data and models relevant to the labour market.
Critical thinking and analytical skills: Students should be able to think critically about economic issues and analyse different theoretical approaches to the labour market.
Ability to understand and work with the literature: Students should be able to read and understand professional texts in the field of economics and apply the knowledge gained to the study of the subject.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
The aim of the course is to introduce students to the basic principles of the labour market, both from the microeconomic and macroeconomic perspective. The course was designed to provide students with a theoretical basis, which they will subsequently build on, for example, in the course Labour Market and Free Movement of Labour. In the course, students will be guided to understand the links between the economic and social mechanisms that influence the functioning of the labour market itself. It will also introduce students to the methods used in labour market analysis. Upon completion of the course, graduates will be able to understand labour market processes, the interventions that take place in this market, be able to analyse developments in the relevant market and, on the basis of these analyses, formulate conclusions based on theoretical approaches to the labour market.
Learning outcomes
Understanding the basic principles of the labour market: Students will be able to explain the basic microeconomic and macroeconomic mechanisms affecting the labour market.
Application of theoretical models: Students will be able to apply theoretical models to the analysis of specific labour market situations, including labour demand and supply, unemployment and government intervention.
Data Analysis and Interpretation: Students will gain skills in the analysis and interpretation of labour market data, including unemployment rates and labour force structure.
Recommendation Formulation: Students will be able to design and defend recommendations for employment policies and other labor market interventions based on the analyses conducted.
Critical Thinking: Students will be able to critically evaluate different approaches to labour market regulation and their impact on the economy and society.
Syllabus
  • Introduction to labour market theory: Key concepts. Microeconomic and macroeconomic context of the labour market.
  • Firm labour demand and its specifics: Profit maximisation condition in the input market. Income and cost variables and their role in labour market analysis.
  • Demand in a perfectly competitive labour market: Demand of a firm selling its output in a perfectly competitive market. Demand of a firm selling its output in a non-perfectly competitive market.
  • Demand in the imperfectly competitive labour market: Optimal quantity of labour and its choice in the short run. The optimal quantity of labour and its choice in the long run. Monopsony and wage discrimination.
  • Labor supply. Individual and market labour supply: Monopoly power in the labour market and how it is enforced. The labour market and bilateral monopoly.
  • Macroeconomic context of the labour market: Labour and its role in economics. Production possibilities and their growth. Unemployment.
  • Unemployment measurement: Unemployment rate. Duration of unemployment. Reasons for unemployment. Discouraged workers. Underemployment and fictitious unemployment.
  • Full employment and human costs: Seasonal unemployment. Frictional unemployment. Structural unemployment. Cyclical unemployment. Full employment as a goal of economic policy makers. Natural rate of unemployment.
  • The relationship between unemployment and job vacancies: The Beveridge curve and possibilities of its modification.
  • State action in the labour market: State regulation of the labour market. The minimum wage and its role in the economy.
  • Employment policy: Definition of employment policy. Objectives of employment policy. Active and passive employment policy programmes.
  • Theoretical approaches to regional labour markets: Classification of regional labour markets.
  • International labour movement: Labour market and its internationalisation. Migration flows and main migration territories. Expected trends.
Literature
    required literature
  • BORJAS, George. Labor Market Economics. Mc GrawHill, 2010. ISBN 978-00-71048-47-7.
  • EHRENBERG, Ronald and Robert SMITH. Modern Labor Economics. Theory and Public Policy. Pearson Addison Wesley Companion, 2009. ISBN 978-0-321-53373-9.
  • HANČLOVÁ, Jana a kol. Modelování a klasifikace regionálních trhů práce. Ostrava: VŠB-TUO, 2002. ISBN 80-248-0220-1.
  • HOŘEJŠÍ, Bronislava a kol. Mikroekonomie. Praha: Management Press, 2018. ISBN 978-80-7261-538-4.
  • SCHILLER, B. R. Makroekonomie dnes. Brno, 2004. ISBN 80-251-0169-X. info
  • ŠIMEK, Milan Ekonomie trhu práce A. Ostrava: VŠB-TUO, 2007. ISBN 978-80-248-1416-2.
    recommended literature
  • BLOCK, Walter Labor Economics From a Free Market Perspectives. World Scientific, 2008. ISBN: 978-981-270-568-6.
  • BROŽOVÁ, Dagmar Kapitoly z moderních ekonomie trhů práce. Praha: C.H. Beck, 2018. ISBN 978-80-7400-719-4.
  • MAREŠ, P. Nezaměstnanost jeko sociální problém. Praha: Slon, 2002. ISBN 80-86429-08-3. info
Teaching methods
Understanding the basic principles of the labour market: Students will be able to explain the basic microeconomic and macroeconomic mechanisms affecting the labour market.
Application of theoretical models: Students will be able to apply theoretical models to the analysis of specific labour market situations, including labour demand and supply, unemployment and government intervention.
Data Analysis and Interpretation: Students will gain skills in the analysis and interpretation of labour market data, including unemployment rates and labour force structure.
Recommendation Formulation: Students will be able to design and defend recommendations for employment policies and other labor market interventions based on the analyses conducted.
Critical Thinking: Students will be able to critically evaluate different approaches to labour market regulation and their impact on the economy and society.
Assessment methods
The course is completed by an examination test, which the student takes within the IS SU system. To pass the test successfully, the student must write the test to at least 60%, i.e. 18 out of 30 points.
Language of instruction
Czech
Further Comments
The course can also be completed outside the examination period.
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