Personnel Economics and Workplace Inequality 2400-ZEWW1042
This course applies microeconomic principles to the study of internal labor markets and human resource management, with particular emphasis on gender inequality, discrimination, compensation structures, and workplace institutions.
The preliminary weekly schedule:
Week 1: Introduction to Personnel Economics
- Foundations of personnel economics
- The job in an imperfect labour market
Week 2: The hours-employment trade-off
- Classification of labour costs
- A Theory of the hours-employment trade-off
- The overtime premium and the effects of reducing the Workweek
Week 3: Hiring and recruitment processes
- Asymmetric information
- Signaling model, credentials
Week 4: Compensation Systems and Incentives
- Piece rates, bonuses, and tournaments
- Performance pay
- Negotiation and compensation dynamics
Week 5: Training and Human Capital Investment
- The basic human capital model of schooling
- Mincer wage equation
- General vs. firm-specific training
Week 6: Layoffs and Quits
- The economics of worker turnover
- Is turnover good or bad
- Retention strategies
Week 7: Discrimination and Diversity
- Theories of discrimination
- Testing for discrimination (audit studies, experiments)
- Diversity policies and measures
Week 8: The Economics of Gender in the Workplace
- The gender pay gap
- Behavioral economics of gender
Week 9: Family, Parenthood, and Labor Market Outcomes
- The motherhood penalty, the fatherhood premium
- Household bargaining
- Fertility and career dynamics
Week 10: Intersectionality and other dimensions of Discrimination
- Race and gender intersections
- Migration
- LGBTQ+
Week 11: Government Policies to Combat Discrimination
- Equal pay legislation
- Quotas
- Family policies
Week 12: Workplace Flexibility, Remote Work, and Modern Personnel Trends
- Flexible work arrangements
- Remote work and hybrid labor markets
- Work-life balance
- Ideal worker norm
Week 13: Summary and miscellaneous topics
Weeks 14-15: Students’ presentations
Course coordinators
Type of course
Learning outcomes
By the end of the course, students should be able to:
1. Explain the core theories of personnel economics and labor market incentives.
2. Analyze economic models of discrimination and inequality.
3. Evaluate empirical evidence regarding wage gaps and labor market disparities.
4. Understand how compensation systems shape worker behavior and organizational outcomes.
5. Assess the effects of workplace institutions and public policies on pay equity and discrimination.
6. Critically interpret academic research on gender, discrimination, and workplace inequality.
Assessment criteria
Presentation and a written exam:
1. Students present a research proposal related to personnel economics or workplace inequality. Presentation will count as 60% of the final grade.
2. The second requirement is the final exam equal to 40% of the final grade. Questions for the exam will be taken from class lectures, the textbook, and articles.