ECO313 - Labor Economics

Cliff Donn

Spring 2006

Office R-228  Ext. 4339

 web.lemoyne.edu/~donn/class/eco313/eco313.htm

donn@lemoyne.edu

TOPICS: The basic subject matter of the course is supply and demand in the labor market and the application of those concepts.

SOURCES: The text for the course will be The Economics of Labor Markets, seventh edition, by Bruce E. Kaufman and Julie L. Hotchkiss (KH). Other references, on reserve at the library, include selections from the Monthly Labor Review, Industrial Relations, the Industrial and Labor Relations Review, the Proceedings of the Industrial Relations Research Association, and several books.

REQUIREMENTS: All students will take a comprehensive final examination on Thursday, May 11, at 12:00 noon.  In addition there will be three mid-term examinations, one on February 8, one on March 8, and one on April 10. These mid-term examinations are optional but if you choose not to take any of them you will need to write additional critiques.  Students will each write at least two "critiques," including at least one on one of the first three topics. Those who choose may write a third or a third and a fourth critique. You may not write a fourth critique if you take all three mid-terms and you must write a third and a fourth critque if you miss you miss all of the mid-terms. See the separate handout on critiques for details.  The mid-term examinations will each count 15% of your final grade and the critiques will count 10% each.  The final examination can count as little as 25% and as much as 60% depending on the option you choose with regard to the mid-term examinations and critiques.  In summary, everyone must write two critiques, and take the final examination. In addition, you must either take at least one mid-term exam or write at two additional critiques. You may take as many as three mid-terms (in which case you can write two or three critiques) and if you take fewer than three mid-terms, you may write as many as four critiques (and you must write four if you take no mid-terms). You will also receive extra credit if you hand in all problem sets on time and they are done correctly.  Finally, regular class attendance and participation in class discussion are required. Students who attend class and are prepared for discussion on a daily basis can expect these facts to be reflected in their grades. The inverse is also true.  You should not take this class unless you expect to attend every day! Cell phones must be turned off completely during class.

DISABILITY: If you have a documented disability and wish to discuss academic accommodations, please contact the instructor within the first week of class.
 
 

Class Schedule

Please use this schedule to plan your reading which should be done before the relevant class.
 
 

TOPICS

DATES

I. Course Introduction........................................................................................................Jan 18
II. Supply and Demand in the Labor Market - Concepts
    A. Labor Supply............................................................................................................Jan 20,23,25,27,30, Feb 1,3,6
    B. Labor Demand and Wage Determination...................................................................Feb 10,13,15,17,20,22,24, Mar 6
III. Supply and Demand in the Labor Market - Applications
    A. Income Distribution and Poverty................................................................................Mar 10,13,15,17,20
    B. Unemployment..........................................................................................................Mar 22,24,27,29
    C. Discrimination in the Labor Market............................................................................Mar 31, Apr 3,5,7
IV. The Institutions of the Labor Market
    A. Unions and Collective Bargaining...............................................................................Apr 12,19,21
    B. Human Resource Policies..........................................................................................Apr 24,26,28
V. Labor and Labor Markets in a Global Economy............................................................May 1,3
VI. Summary and Conclusions...........................................................................................May 5
 
 

ACTIVITIES

DATES

Exam 1.............................................................................................................................Feb 8
Critique 1..........................................................................................................................Feb 15
Exam 2.............................................................................................................................Mar 8
Critique 2..........................................................................................................................Mar 15
Critique 3..........................................................................................................................Mar 27
Critque 4..........................................................................................................................Apr 5
Exam 3.............................................................................................................................Apr 10
Critique 5..........................................................................................................................Apr 19
Critique 6..........................................................................................................................Apr 28
Final Examination..............................................................................................................May 11, 12:00 noon

EXPECTATIONS

WHAT I EXPECT FROM YOU: I expect that you will come to class each day on time, having done the reading assignment and prepared to participate by asking and answering questions and by expressing your opinions. I expect that you will ask questions about anything you don't understand. I expect that assignments will be done and turned in on time and that they will reflect the best work you can do and that they will reflect only your own work. I expect that you will contact me if you are having any problems in the course or if you are having personal problems which may affect your performance in the course. Overall, I expect you to work hard at getting the most out of this course that you possibly can.

WHAT YOU CAN EXPECT FROM ME: You can expect that I shall come to class on time each day having thought about and prepared the material. You can expect that I shall answer your questions to the best of my ability and that your opinions will be heard with respect. You can expect that your assignments and exams will be graded carefully and returned in a timely manner and that you will be given an explanation of why you receive the grades you receive. You can expect that I shall make time to see you if you need to see me and that I shall keep regular office hours.

WHAT WE SHOULD EXPECT FROM EACH OTHER: A serious commitment to learning and a serious effort toward that end.

OUTCOMES: At the end of this class, the successful student will be familiar with the tools of supply and demand as they apply to the labor market and will be able to use those tools to analyze labor market issues and problems when they are discussed in the media and in the work environment. The student will also be familiar with the impact of labor market regulation and such labor market institutions as trade unions and collective bargaining.

READING LIST

I. Introduction

  1. KH - Chap. 1
  2. Kerr, "The Balkanization of Labor Markets," in E. Wight Bakke, Labor Mobility and Economic Opportunity

 

II. A. Supply

  1. KH - Chaps. 2,3,7
  2. Gary Becker - Human Capital, chap. 2

 

Optional:

  1. Tyler, "Does the G.E.D. Improve Earnings?  Estimates from a Sample of Both Successful and Unsuccessful G.E.D. Candidates,"  Industrial and Labor Relations Review, July 2004
  2. Devereux, "Changes in Male Labor Supply and Wages," Industrial and Labor Relations Review, April 2003
  3. Szafran, "Age-Adjusted Labor Force Participation Rates: 1960-2045," Monthly Labor Review, September 2002
  4. Hill, "The Labor Force Participation of Older Women: Retired? Working? Both?" Monthly Labor Review, September 2002
  5. Baker, "The Influx of Women into Legal Professions: an Economic Analysis," Monthly Labor Review, August 2002
  6. Devens, "New Employment Projections Released by BLS," Industrial Relations, July 2002
  7. Boman and Mehay, "College Quality and Employee Job Performance: Evidence from Naval Officers," Industrial and Labor Relations Review, July 2002
  8. Toossi, "A Century of Change: the U.S. Labor Force, 1950-2050," Monthly Labor Review, May 2002
  9. Chenu and Robinson, "Synchronicity in the Work Schedules of Working Couples," Monthly Labor Review, April 2002
  10. DiNatale and Boraas, "The Labor Force Experience of Women from 'Generation X'," Monthly Labor Review, March 2002

B. Demand

  1. KH - Chaps. 4,5,6
  2. Doeringer and Piore - Internal Labor Markets, chaps. 2,5
  3. Sonn, "The New Municipal Minimum Wage Laws," Perspectives on Work, v.8, n.1, Summer 2004

 

Optional:

  1. Altonji and Williams, ""Do Wages Rise with Job Seniority: A Reassessment," Industrial and Labor Relations Review, April 2005
  2. Brenner, "The Economic Impact of the Boston Living Wage Ordinance," Industrial Relations, January 2005
  3. Fairris, "The Impact of Living Wages on Employers: A Control Group Analysis of the Los Angeles Ordinance," Industrial Relations, January 2005
  4. Neumark, "Living Wages: Protection for or Protection from Low-wage Workers," Industrial and Labor Relations Review, October 2004
  5. Simon and Kaestner, "Do Minimum Wages Affect Non-wage Job Attributes?  Evidence on Fringe Benefits,"  Industrial and Labor Relations Review, October 2004
  6. Neumark and Wascher, "Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross national Comparison," Industrial and Labor Relations Review, January 2004
  7. Capelli, "Why Do Employers Re-train At Risk Workers?  The Role of Social Capital," Industrial Relations, April 2004
  8. Bowles, "Employment and Wage Outcomes for High-tech Workers," Monthly Labor Review, May 2004
  9. Berman, "Industry Output and Employment," Monthly Labor Review, February 2004
  10. Hecker, "Occupational Employment," Monthly Labor Review, February 2004
  11. Neumark and Adams, "Detecting Effects of Living Wage Laws," Industrial Relations, October 2003
  12. Sok, "Job Security in the 21st Century," Monthly Labor Review, November 2002
  13. Hamermesh, "12 Million Salaried Workers are Missing," Industrial and Labor Relations Review, July 2002
  14. Figlio, "Can Public Schools Buy Better-Qualified Teachers?" Industrial and Labor Relations Review, July 2002
  15. Sparks, et al., "A Perspective on U.S. and Foreign Compensation Costs in Manufacturing," Monthly Labor Review, June 2002
  16. Buckley, "Rankings of Full-Time Occupations by Earnings, 2000," Monthly Labor Review, March 2002

III.A. Income Distribution

  1. KH Chap.8
  2. Sawhill, "Poverty in the U.S.: Why Is It So Persistent?" Journal of Economic Literature, September 1988

 

Optional:

  1. Lubotsky, "The Labor Market Effects of Welfare Reform," Industrial and Labor Relations Review, January 2004
  2. Stellmack, et al., "Transitions Off Welfare: An Examination of Demographic, Socioeconomic and Motivational Predictors," Industrial Relations, October 2003
  3. Short and Gamer, "Experimental Poverty Measures: Accounting for Medical Expenditures," Monthly Labor Review, August 2002
  4. Moretti and Perloff, "Use of Public Transfer Programs and Private Aid by Farm Workers," Industrial Relations, January 2000

 

B. Unemployment.

  1. KH - Chap. 13

 

Optional:

  1. Sincavage, "Labor Force and Unemployment: Three Generations of Change," Monthly Labor Review, June 2004
  2. Kletzer and Fairlie, "The Long-term Costs of Job Displacement for Young Adult Workers," Industrial and Labor Relations Review, July 2003
  3. Brand, "Technological Unemployment," Monthly Labor Review, May 2002
  4. Charness and Levine, "When are Layoffs Acceptable? Evidence from a Quasi-Experiment," Industrial and Labor Relations Review, April 2000
  5. Weiler, "Industrial Structure and Unemployment in Regional Labor Markets," Industrial Relations, April 2000
  6. Monks and Pizer, "Trends in Voluntary and Involuntary Job Turnover," Industrial Relations, October 1998

 

C. Discrimination

  1. KH - Chap. 9
  2. Cawley, Heckman and Vytlacil, "Meritocracy in America: Wages Within and Across Occupations," Industrial Relations, July 1999
  3. Hardin, "The Integration of Women into Professional Personnel and Labor Relations Work," Industrial and Labor Relations Review, January 1991

 

Optional:

  1. Kahn and Shah, "Race, Compensation and Contract Length in the NBA: 2001-2002," Industrial Relations, July 2005
  2. Petersen, et al., "Getting Hired: Sex and Race," Industrial Relations, July 2005
  3. Mason, "Annual Income, Hourly Wages, and Identity Among Mexican-Americans and Other Latinos," Industrial Relations, October 2004
  4. Black and Brainerd, "Importing Equality: The Impact of Globalization on Gender Discrimination," Industrial and Labor Relations Review, July 2004
  5. Coleman, "Racial Discrimination in the Workplace: Does Market Structure Make a Difference?" Industrial Relations, July 2004
  6. Stoll et al., "Black Job Applicants and the Hiring Officer's Race,"  Industrial and Labor Relations Review, January 2004
  7. Montgomery and Powell, "Does an Advanced Degree Reduce the Gender Wage Gap?  Evidence from MBAs," Industrial Relations, July 2003
  8. Joy, "Salaries of Recent Male and Female College Graduates: Educational and Labor Market Effects," Industrial and Labor Relations Review, July 2003
  9. Juhn, "Labor Market Dropouts and Trends in the Wages of Black and White Men," Industrial and Labor Relations Review, July 2003
  10. Blandford, "The Nexus of Sexual Orientation and Gender in the Determination of Earnings," Industrial and Labor Relations Review, July 2003
  11. Black, et al., "The Earnings Effects of Sexual Orientation," Industrial and Labor Relations Review, April 2003
  12. Boraas and Rodgers, "How Does Gender Play a Role in the Earnings Gap? An Update," Monthly Labor Review, March 2003
  13. Bertrand and Hallock, "The Gender Gap in Top Corporate Jobs," Industrial and Labor Relations Review, October 2001
  14. Elvira and Town, "The Effects of Race and Worker Productivity on Performance Evaluations," Industrial Relations, October 2001
  15. Allegretto and Arthur, "An Empirical Analysis of Homosexual/Heterosexual Male Earnings Differentials: Unmarried and Unequal?" Industrial and Labor Relations Review, April 2001
  16. McDonnell et al., "Gender and Promotion in the Economics Profession," Industrial and Labor Relations Review, January 2001
  17. Holzer and Neumark, "What Does Affirmative Action Do?" Industrial and Labor Relations Review, January 2000
  18. Dickens and Kane, "Racial Test Score Differences as Evidence of Reverse Discrimination: Less than Meets the Eye," Industrial Relations, July 1999

 

IV. A. Unions and Collective Bargaining

  1. KH - Chaps. 11,12

 

Optional:

  1. Farber, "Non-Union Wage Rates and the Threat of Unionization," Industrial and Labor Relations Review, April 2005
  2. Belman and Voos, "Changes in Union Wage Effects by Industry: A Fresh Look at the Evidence," Industrial Relations, July 2004
  3. Booth and Bryan, "The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?" Industrial and Labor Relations Review, April 2004
  4. Budd and McCall, "Unions and Unemployment Insurance Benefits Receipt: Evidence from the Current Population Survey, Industrial Relations, April 2004
  5. Bratsberg and Ragan, "Changes in the Union Wage Premium by Industry," Industrial and Labor Relations Review, October 2002
  6. Buchmueller et al., "Union Effects on Health Insurance Coverage in the United States," Industrial and Labor Relations Review, July 2002
  7. Belman and Monaco, "The Effects of Deregulation, De-unionization and Human Capital on the Work and Work Lives of Truck Drivers," Industrial and Labor Relations Review, March 2001
  8. Card, "The Effects of Unions on Wage Inequality in the US Labor Market," Industrial and Labor Relations Review, January 2001

B. Human Resource Policies

  1. KH - Chap. 10

 

Optional:

  1. Greenberg et al., "A Meta-Analysis of Government Sponsored Training Programs," Industrial and Labor Relations Review, October 2003
  2. Thomas,  "Public Employment Agencies and Unemployment Spells:  Reconciling the Experimental and Nonexperimental Evidence, " Industrial and Labor Relations Review,  July 1997
  3. Friedlander, "High-Cost Services: The Challenge for Welfare-to-Work Programs," IRRA Proceedings, January 1990
  4. Trunzo, "Role of the Federal Government in Training America's Workers," IRRA Proceedings, January 1990
  5. Mangum, "Federal Policies and Worker Status Since the1930s," in Goldberg et al., Federal Policies and Worker Status Since the Thirties

 

V. Global Economy

  1. Wolman and Colamosca, "The Judas Economy," WorkingUSA, September/October 1997

 

Optional:

  1. Decker and Corson, "International Trade and Worker Displacement: Evaluation of the Trade Adjustment Assistance Program," Industrial and Labor Relations Review, July 1995 


VI. Conclusions

  1. Wilensky, "The Great American Job Creation Machine in Comparative Perspective," Industrial Relations,  Fall 1992