Master in Applied Labour Economics for Development - Module B

Drawing on the literature, empirical evidence and policy debates, this module aims to expose participants to the theories that underpin the discussions on labour market institutions and policies and the empirical evidence on their impact. The lectures places these dimensions in a development context: What regulations exist in developing countries? How relevant are these regulations for developing countries? What is their impact on economic and labour outcomes? How can institutions and policies in developing countries be more effective in terms of worker protection and providing the right conditions for employers? 

The topics covered in the course include:

• Overview and history of labour market institutions (LMIs)
• The impact of LMIs: theory and empirical evidence
• LMIs in developing countries
• Active labour market policies (ALMPs): what role and impact in developing countries?

This module aims at introducing students to recent developments in social security / social protection in a development context. It will discuss the importance of social protection for economic and social development, namely with regard to employment and labour markets, review current trends and country experiences, and discuss different policy approaches, including the ILO approach to extending social security coverage through nationally-defined social protection floors as part of comprehensive social protection systems. Highlighting the link with employment policies, the module will also assess the role of social protection in facilitating transitions from the informal to the formal economy, in line with ILO Recommendations No. 202 and 204. The module will also situate social protection policies within the broader Sustainable Development Agenda, namely in relation to SDGs 1, 3, 5, 8 and 10 on poverty eradication, gender equality, inclusive economic growth and employment, and inequality.

This module aims at:

• Discussing the importance of social protection for economic and social development
• Reviewing current trends in social protection, promising country experiences and current policy debates
• Assessing the role of social protection in facilitating transitions from the informal to the formal economy, in line with ILO Recommendations No. 202 and 204
• Brainstorming on new perspectives with regard to social protection in the context of the SDGs

The expected results through this module are:

• deeper knowledge about recent trends and country experiences in social protection
• better understanding of social protection policy approaches and the role of social protection in economic and social development.

The aim of the course is to provide students with a comprehensive understanding of the minimum wage as a labour market policy tool that, when effectively implemented, can have positive effects at the micro-economic level (among most vulnerable workers and their families) as well as at the macroeconomic level (e.g., reducing earnings inequality). The course is practical in nature: it helps student understand how minimum wages are set; in particular, the course puts emphasis on how statistical analysis can help in the process of setting, adjusting and evaluating the impact of a minimum wage policy.