HEH 2201: LABOUR ECONOMICS
COURSE PURPOSE
This course is designed to provide the student with an understanding of forces of demand and
supply of human capital and the socioeconomic and regulatory factors that affect its productivity.
1.0 COURSE OUTCOMES
At the end of the course the learner should be able to;
2.1 Appreciate the economic value of labour.
2.2 Understand and demonstrate ability to manage the demand and supply forces that govern
acquisition and deployment of labour productively.
2.0 COURSE DESCRIPTION
WEEK 1: Overview of Labour Economics:
- Definition of key terms: Labour Economics. Population, structure.
- Factors that lead to growth and the problems that arise thereof.
WEEK 2: Production:
- Meaning and importance of production.
- Explain how production can be improved.
- Determine Factors and Characteristics of labour in Kenya-compared with other countries.
WEEK 3: Importance of Labour:
- Labour as a factor of production, division and specialization of labour, alignment of
labour with production.
WEEK 4: Production-meaning and importance of labour costs,
- law of non proportional returns,
- economies and diseconomies of scale.
WEEK5: Labour Production:
- meaning, significance, measurements, improvement, bottlenecks.
WEEK6: Labour markets:
- demand, supply, elasticity, imperfection and disequilibrium.
WEEK7: Wage bargaining:
- wage differences and income policies
- significance and procedures .
WEEK8: Labour Mobility
- Meaning, structure,
- Types of labour mobility
- How to determine mobility of labour
- theories of labour mobility.
WEEK9: Employment and Unemployment-
- Types of unemployment
- causes, effects and mitigation of unemployment.
WEEK10: Trade unions:
- Meaning, types, functions of trade unions
- Meaning of collective bargaining.
WEEK11: Human capital:
- Meaning of labour
- Functionality of human capital,
- Its significance and emerging trends.
,WEEK 12: Emerging Trends in Labour Economics.
3.0 TEACHING METHODOLOGY
The course will be delivered through the following methods:
1. Lectures.
2. Individual assignments/exercises.
3. Group/class discussions /presentations.
4. Case studies/Engagement.
5.0 INSTRUCTIONAL MATERIALS/EQUIPMENT
Smart board, Duster, Computer, LCD Projector and Teaching Notes and Relevant Case Studies
6.0 COURSE ASSESSMENT/EVALUATION
Assessment of student’s progress will assume the following dimension:
CAT’S 30%
End of Semester Examination 70%
TOTAL 100%
7.0COURSE TEXT BOOKS
1. Borjas, G. ( 2016 ). Labour Economics (7th Ed.). New York: McGraw Hill Education ISBN:
9780078021886
2. Kar, S. & Datta,D. (2015). Industrial and Labour Economics: Issues in Developing and
Transition Countries (1st Ed.). India: Springer International Publishing ISBN: 9788132220176
3.Hubbard, G., Garnett, A., Lewis, P., & O’Brien, T. (2015). Essentials of Economics (3rd Ed.).
Australia: Pearson ISBN: 9781486022847
8.0 REFERENCE BOOKS
1. Laing, D. (2011 ). Labour Economics: Introduction to Classic and New Labour Economics (1st
Ed.). New York: W.W. Norton & Company, Inc. ISBN 9780398979527
2. Ashenfetter,O. & Card, D. (2005). Handbook of Labour Economics (3rd Ed.).Amsterdam,
Netherlands: Elsevier Inc. ISBN: 9780444534507
3. Ehrenberg, R.G. (2008). Modern Labour Economic Theory and Public Policy (10th Ed.)..
Addison Wesley: Pearson ISBN: 978032153377777789
9.0 COURSE JOURNALS
1. Journal of Economics ISSN: 0927-5371
2. Journal of Labour Economics ISSN: 2193-8997
3. Labour Economics (Journal) ISS : 0927-5371
10.0 REFERENCE JOURNALS
1. Indian Journal of Labour Economics ISSN: 0971-7927
2. Journal of International Economics ISSN: 0976-4852
. 3. Advances in Economics Analysis and Policy ISSN: 1538-0637
, INTRODUCTION TO LABOUR ECONOMICS:
LABOUR – is one of the primary factors of production other factors include. Labour, capital and
enterpreurship derived demand, these are input we derive. Note that labour is the collect name
given to the productive service, embodied in human physical efforts, skill, intellectual power.
e.t.c.
There are different types of effort and skill content. This means that labour input is not
homogeneous according to the principle of economics production. Resources are relatively
scarce or limited this means that the desire of consumer, business and governmental unit for
goods and services exceed our productive capacity. Since resources are scarce and the want
unlimited, society is obliged to manage this resource efficiently. Labour economics therefore
looks at ways labour as a resource could be efficiently utilized.
DEFINITION OF LABOUR ECONOMICS:
Labour economics is the branch of economics which studies the workings and outcomes of the
market for labour services, labour economics deals with the behavior of employers and
employees to the pecuniary (wages, prices, profits) and non-pecuniary (working conditions, work
environmental) aspects of the employment relationship firms operate in three markets as they
pursue their objectives of profit maximization; the labour markets, the capital market and the
product market.
It is the study of the labour force as an element in the process of production. Labour force
comprises a part of the population which is employed or available for work. The labour force is
made up of all those who work for gain whether as employees, employers or as self-employed. It
also includes the unemployed who are seeking for employment.
Labour economics is therefore the study of the factors affecting efficiency of workers, their
development between different industries and occupations and the determination of their pay.
Definition of Population
This is the sum of people employed and unemployment. They represent the supply of labour for
production of goods and services in exchange for remuneration existing in a country at a given
point in time. The "economically active population" comprises all persons of either sex who
furnish the supply of labour for the production of economic goods and services.
Definition of structure
In labor economics, the term "structure" typically refers to the various characteristics and
features of the labor market and how they influence the behavior of workers, employers, and the
overall functioning of the labor market. These structural elements can have a significant impact
on employment patterns, wages, job mobility, and other labor market outcomes. Here are some
key aspects of labor market structure:
COURSE PURPOSE
This course is designed to provide the student with an understanding of forces of demand and
supply of human capital and the socioeconomic and regulatory factors that affect its productivity.
1.0 COURSE OUTCOMES
At the end of the course the learner should be able to;
2.1 Appreciate the economic value of labour.
2.2 Understand and demonstrate ability to manage the demand and supply forces that govern
acquisition and deployment of labour productively.
2.0 COURSE DESCRIPTION
WEEK 1: Overview of Labour Economics:
- Definition of key terms: Labour Economics. Population, structure.
- Factors that lead to growth and the problems that arise thereof.
WEEK 2: Production:
- Meaning and importance of production.
- Explain how production can be improved.
- Determine Factors and Characteristics of labour in Kenya-compared with other countries.
WEEK 3: Importance of Labour:
- Labour as a factor of production, division and specialization of labour, alignment of
labour with production.
WEEK 4: Production-meaning and importance of labour costs,
- law of non proportional returns,
- economies and diseconomies of scale.
WEEK5: Labour Production:
- meaning, significance, measurements, improvement, bottlenecks.
WEEK6: Labour markets:
- demand, supply, elasticity, imperfection and disequilibrium.
WEEK7: Wage bargaining:
- wage differences and income policies
- significance and procedures .
WEEK8: Labour Mobility
- Meaning, structure,
- Types of labour mobility
- How to determine mobility of labour
- theories of labour mobility.
WEEK9: Employment and Unemployment-
- Types of unemployment
- causes, effects and mitigation of unemployment.
WEEK10: Trade unions:
- Meaning, types, functions of trade unions
- Meaning of collective bargaining.
WEEK11: Human capital:
- Meaning of labour
- Functionality of human capital,
- Its significance and emerging trends.
,WEEK 12: Emerging Trends in Labour Economics.
3.0 TEACHING METHODOLOGY
The course will be delivered through the following methods:
1. Lectures.
2. Individual assignments/exercises.
3. Group/class discussions /presentations.
4. Case studies/Engagement.
5.0 INSTRUCTIONAL MATERIALS/EQUIPMENT
Smart board, Duster, Computer, LCD Projector and Teaching Notes and Relevant Case Studies
6.0 COURSE ASSESSMENT/EVALUATION
Assessment of student’s progress will assume the following dimension:
CAT’S 30%
End of Semester Examination 70%
TOTAL 100%
7.0COURSE TEXT BOOKS
1. Borjas, G. ( 2016 ). Labour Economics (7th Ed.). New York: McGraw Hill Education ISBN:
9780078021886
2. Kar, S. & Datta,D. (2015). Industrial and Labour Economics: Issues in Developing and
Transition Countries (1st Ed.). India: Springer International Publishing ISBN: 9788132220176
3.Hubbard, G., Garnett, A., Lewis, P., & O’Brien, T. (2015). Essentials of Economics (3rd Ed.).
Australia: Pearson ISBN: 9781486022847
8.0 REFERENCE BOOKS
1. Laing, D. (2011 ). Labour Economics: Introduction to Classic and New Labour Economics (1st
Ed.). New York: W.W. Norton & Company, Inc. ISBN 9780398979527
2. Ashenfetter,O. & Card, D. (2005). Handbook of Labour Economics (3rd Ed.).Amsterdam,
Netherlands: Elsevier Inc. ISBN: 9780444534507
3. Ehrenberg, R.G. (2008). Modern Labour Economic Theory and Public Policy (10th Ed.)..
Addison Wesley: Pearson ISBN: 978032153377777789
9.0 COURSE JOURNALS
1. Journal of Economics ISSN: 0927-5371
2. Journal of Labour Economics ISSN: 2193-8997
3. Labour Economics (Journal) ISS : 0927-5371
10.0 REFERENCE JOURNALS
1. Indian Journal of Labour Economics ISSN: 0971-7927
2. Journal of International Economics ISSN: 0976-4852
. 3. Advances in Economics Analysis and Policy ISSN: 1538-0637
, INTRODUCTION TO LABOUR ECONOMICS:
LABOUR – is one of the primary factors of production other factors include. Labour, capital and
enterpreurship derived demand, these are input we derive. Note that labour is the collect name
given to the productive service, embodied in human physical efforts, skill, intellectual power.
e.t.c.
There are different types of effort and skill content. This means that labour input is not
homogeneous according to the principle of economics production. Resources are relatively
scarce or limited this means that the desire of consumer, business and governmental unit for
goods and services exceed our productive capacity. Since resources are scarce and the want
unlimited, society is obliged to manage this resource efficiently. Labour economics therefore
looks at ways labour as a resource could be efficiently utilized.
DEFINITION OF LABOUR ECONOMICS:
Labour economics is the branch of economics which studies the workings and outcomes of the
market for labour services, labour economics deals with the behavior of employers and
employees to the pecuniary (wages, prices, profits) and non-pecuniary (working conditions, work
environmental) aspects of the employment relationship firms operate in three markets as they
pursue their objectives of profit maximization; the labour markets, the capital market and the
product market.
It is the study of the labour force as an element in the process of production. Labour force
comprises a part of the population which is employed or available for work. The labour force is
made up of all those who work for gain whether as employees, employers or as self-employed. It
also includes the unemployed who are seeking for employment.
Labour economics is therefore the study of the factors affecting efficiency of workers, their
development between different industries and occupations and the determination of their pay.
Definition of Population
This is the sum of people employed and unemployment. They represent the supply of labour for
production of goods and services in exchange for remuneration existing in a country at a given
point in time. The "economically active population" comprises all persons of either sex who
furnish the supply of labour for the production of economic goods and services.
Definition of structure
In labor economics, the term "structure" typically refers to the various characteristics and
features of the labor market and how they influence the behavior of workers, employers, and the
overall functioning of the labor market. These structural elements can have a significant impact
on employment patterns, wages, job mobility, and other labor market outcomes. Here are some
key aspects of labor market structure:
