We will meet and discuss the following questions:
· "Unemployment is high because real wages are too high''. Discuss.
· Discuss problems in defining and measuring unemployment.
· "There are always some vacancies, so any unemployment must be voluntary''. Discuss
· Explain the distinction between stocks and flows. How can different flow-levels generate the same level of unemployment?
Seminar 2: Efficiency Wages
Topic: Evidence on Efficiency Wages
Paper to be presented:.
· Krueger, A.B. (1991) Ownership, Agency, and Wages: An Examination of Franchising in the Fast-Food Industry. Quarterly Journal of Economics 106, 75-101.
Seminar 3: Unions
Topic: Effect of Unions
Papers to be presented:
· Booth, A. (1995), "The Economics of the Trade Union", Cambridge University Press,