Activity 01
Market Simulation: Labour Auction
Assign students roles as workers with varying human capital levels (e.g., high school diploma vs. university degree). Auction limited jobs to bids, record clearing wages. Debrief on how skills affect outcomes.
Explain why some jobs pay more than others.
Facilitation TipDuring the Labour Auction, circulate and ask groups to explain why certain jobs received higher or lower bids, prompting them to link their decisions to productivity and scarcity.
What to look forPresent students with two job descriptions, one requiring a university degree and extensive experience, the other a high school diploma and on-the-job training. Ask them to write one sentence explaining how human capital theory predicts different wage ranges for these roles.