This module examines labour economics and econometrics. It seeks to develop an empirical and analytical understanding of key labour market phenomena and policies. In the first semester, the main techniques behind labour econometrics are discussed by studying seminal articles and by econometric exercises, including computer practicals. Two main topics are covered: the determination of wages (estimated using least-squares techniques) and the determination of employment (estimated using limited dependent variable techniques such as Probit and Logit). In the second semester, the theory of contemporary labour economics is discussed. The analytical tools of neoclassical economics are used to examine labour supply and demand, which, in turn, are used to develop an understanding of wage formation and employment levels in labour markets. The module concludes with an examination of sources of wage differentials, considering the effects of education, unions, discrimination, and compensating wage differentials.