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Labor Economics

Wage Determination

Explore theories of wage determination in different domains.

10h (5 days)

€675 - €1,175

Face-to-face

English

Program date: June 30 - July 4, 2025

Early bird deadline: April 15, 2025

Learn more

Wage Determination

Applications for 2025 Summer School programs are now open!

Summer school

Labor Economics

Wage Determination

Course Overview

This course explores the determination of wages. It explores how and why wages evolve over the life-cycle of workers and also why wages vary among different types of workers who are in their prime working years. We begin by comparing models that describe how the process of finding good job matches influences life-cycle wage growth to models that attribute life-cycle wage growth to human capital accumulation. We then consider how public policy impacts the extent to which successful adults are able to impact the relative labor market success of their children by investing in their human capital, and we explore how race and gender impact labor market outcomes in different developed countries. We then examine the impacts of technology, firm characteristics, industry structure, and related factors on the distribution of wages. Finally, we examine how, within firms, employers may employ incentive systems that create ex post wage dispersion that exceeds the ex ante variation in worker skill.

Faculty

This course uses economic analysis to explore wage determination and its influences

PhD and master students in Economics (or other social sciences)
Researchers and professionals from public institutions and policy-oriented institutions
Holders of undergraduate degrees in Economics (or other social sciences)

Understand what influences wage determination and how this affects people’s lives

By the end of the course, participants will have:

Explored and compared key theories of wage determination, including human capital, job matching, and labor market equilibrium models
Developed skills in applying theoretical models to empirical data to understand real-world wage dynamics and labor market phenomena
Gained practical experience in analyzing wage data, interpreting results, and presenting findings effectively

Program Syllabus for Wage Determination

Here is an outline of the topics that will be discussed during the course.

Course Outline

Learning, Sorting, and Matching as sources of wage growth and growing dispersion in wages as workers age.
Human Capital growth as a source of life-cycle wage growth and the labor market returns to education
How race, gender, and family background impact labor market inequality and its transmission
Why do wages differ among firms and sectors within samples of observationally similar workers? The roles of worker sorting, frictions, monopsony, and technology
How firms create wage dispersion to solve problems that arise from hidden actions and unknown types. Agency theory applied to personnel problems

Presentation Skills Workshops

Labor Economics Summer School includes a daily Presentation Skills Workshop (lunch provided).

This workshop teaches academic presentation techniques and offers a call for papers.

Submit your paper to summerschool@bse.eu by May 30 with “Labor presentation skills workshop” in the subject line.

A certificate will be awarded for those who present a paper.

List of References

If you want to get up to date with the latest developments ready for the course, these texts will be helpful:

Learning, Sorting, and Matching as Sources of Wage Growth and Growing Dispersion in Wages as Workers Age

Jovanovic, Boyan. “Job matching and the theory of turnover.” Journal of political economy 87.5, Part 1 (1979): 972-990.
Gibbons, Robert, and Michael Waldman. “A theory of wage and promotion dynamics inside firms.” The Quarterly Journal of Economics 114.4 (1999): 1321-1358.
Pavan, Ronni. “Career choice and wage growth.” Journal of Labor Economics 29.3 (2011): 549-587.
Barlevy, Gadi, and Derek Neal. “Allocating effort and talent in professional labor markets.” Journal of Labor Economics 37.1 (2019): 187-246.

Human Capital Growth as a Source of Life-cycle Wage Growth and the Labor Market Returns to Education

Ben-Porath, Yoram. “The production of human capital and the life cycle of earnings.” Journal of political economy 75.4, Part 1 (1967): 352-365.
Card, David. “The causal effect of education on earnings.” Handbook of labor economics 3 (1999): 1801-1863.
Bhuller, Manudeep, Magne Mogstad, and Kjell G. Salvanes. “Life-cycle earnings, education premiums, and internal rates of return.” Journal of Labor Economics 35.4 (2017): 993-1030.
Chetty, Raj, et al. “Race and economic opportunity in the United States: An intergenerational perspective.” The Quarterly Journal of Economics 135.2 (2020): 711-783.

How Race, Gender, and Family Background Impact Labor Market Inequality and its Transmission

Blundell, Richard, et al. “Changes in the distribution of male and female wages accounting for employment composition using bounds.” Econometrica 75.2 (2007): 323-363.
Olivetti, Claudia, and Barbara Petrongolo. “Unequal pay or unequal employment? A cross-country analysis of gender gaps.” Journal of Labor Economics 26.4 (2008): 621-654.
Blau, Francine D., and Lawrence M. Kahn. “The gender wage gap: Extent, trends, and explanations.” Journal of economic literature 55.3 (2017): 789-865.
Bayer, Patrick, and Kerwin Kofi Charles. “Divergent paths: A new perspective on earnings differences between black and white men since 1940.” The Quarterly Journal of Economics 133.3 (2018): 1459-1501.

Why Do Wages Differ Among Firms and Sectors Within Samples of Observationally Similar Workers? The Roles of Worker Sorting, Frictions, Monopsony, and Technology

Acemoglu, Daron, and David Autor. “Skills, tasks and technologies: Implications for employment and earnings.” Handbook of labor economics . Vol. 4. Elsevier, 2011. 1043-1171.
Card, David, Jörg Heining, and Patrick Kline. “Workplace heterogeneity and the rise of West German wage inequality.” The Quarterly journal of economics 128.3 (2013): 967-1015.
Lamadon, Thibaut, Magne Mogstad, and Bradley Setzler. “Imperfect competition, compensating differentials, and rent sharing in the US labor market.” American Economic Review 112.1 (2022): 169-212.
Bonhomme, Stephane, et al. “How Much Should We Trust Estimates of Firm Effects and Worker Sorting?.” forthcoming Journal of Labor Economics (2020).

How Firms Create Wage Dispersion to Solve Problems That Arise From Hidden Actions and Unknown Types. Agency Theory Applied to Personnel Problems

Rosen, Sherwin. “Prizes and Incentives in Elimination Tournaments.” American Economic Review (1986)
Prendergast, Canice. “The provision of incentives in firms.” Journal of economic literature 37.1 (1999): 7-63.
Lemieux, Thomas, W. Bentley MacLeod, and Daniel Parent. “Performance pay and wage inequality.” The Quarterly Journal of Economics 124.1 (2009): 1-49.
Barlevy, Gadi, and Derek Neal. “Allocating effort and talent in professional labor markets.” Journal of Labor Economics 37.1 (2019): 187-246.

Why join our Summer School?

All BSE Summer courses are taught to the same high standard as our Master’s programs. Join us to:

1

Network with like-minded peers

2

Study in vibrant Barcelona

3

Learn from world-renowned faculty

Admissions and Requirements

Please make sure you are eligible to apply before submitting your application.

Program date: June 30 - July 4, 2025

Early bird deadline: April 15, 2025

Requirements

A strong background in Economics or a field closely related to the course topic (Statistics, Law, etc.)
Postgraduate degree or current Master’s/PhD studies related to the course topic
Relevant professional experience

Admissions Requirements for Wage Determination

Undergraduate degree in Economics or Social Sciences

Schedule

Here is your schedule for this edition of BSE Labor Economics Summer School, Wage Determination course.

Time

30

mon

1

tue

2

wed

3

thu

4

fri

09:00 - 11:00

Lecture

13:45 - 14:45

Presentation Workshop* (Lunch included)

Credit Transfers (ECTS)

To be eligible for credit transfer, students must complete a final project.

Students will deliver a short summary of a paper one week after the summer school finishes. It will consist of a critical summary of a published paper, around 3-4 pages, 1.5 spaced, font size 11. The critical summary will need to follow these guidelines: expose what are the main ideas of the paper, how they are addressed, strength and weakness of the paper, methodological approach, theoretical or empirical background, and suggestions for improvements).

Consult the Summer School Admissions page for more information about this option.

Certificate of Attendance

Participants who attend more than 80% of the course will receive a Certificate of Attendance, free of charge.

Fees

Multiple course discounts are available; see more information about available discounts. Fees for courses in other Summer School programs may vary.

Course

Wage Determination

Gender Economics

Economics of Migration

Modality

Face-to-face

Total Hours

10

ECTS

1

Regular Fee

1,175€

Reduced Fee*

675€

* Reduced Fee applies for PhD or Master’s students, Alumni of BSE Master’s programs, and participants who are unemployed.

FAQ

Here are some commonly asked questions by participants. Any further queries, please contact our Admissions Team.

Can I see the full Summer School calendar?

You can view the full Summer School calendar here.

Is accommodation included in the course fee?

Unfortunately, accommodation is not included in the course fee. Participants are responsible for finding accommodation.

Are the sessions recorded?

Sessions will NOT be recorded; However, the materials provided by the professor will be available for a month after the course has finished.

How much does each Summer School course cost?

Fees for each course may vary. Please consult each course page for accurate information.

Are there any discounts available?

Yes, BSE offers a variety of discounts on its Summer School courses. See more information about available discounts or request a personalized discount quote by email .