EXAMS - Eco 313, Spring 2005

Below is the exam schedule for Eco 313 for the Spring semster, 2006

Remember that mid-term exams are optional but that students who take none of the mid-term exams must write four critiques.
First mid-term exam, Wednesday, February 8, in class.  It will cover all the material in topic I, Introduction, and topic IIA, Labor Supply.
Second mid-term exam, Wednesday, March 8, in class.  It will cover all the material in topic IIB, Labor Demand and Wage Determination.
Third mid-term exam, Monday, April 10, in class. It will cover all the material in topic III, Supply and Demand in the Labor Market, Applications
Final examination, Thursday, May 11, 12:00 noon, at a location to be determined.  It is a comprehensive exam covering all of the material in the course.

What follows is the question from the third part of the final exam (the "long" essay) from the Spring semester of 2005.

Mabry's theory of discrimination is based on the notion that differences in "wealth" among different groups explain much of what appears to be discrimination. Suppose that the federal government adopted this theory and decided to use it to combat sexual discrimination. Suppose that the resulting program guaranteed every woman between the ages of 18 and 60, an income of $50 per week in addition to any other income she might earn. The $50 would be received automatically, whether the woman worked or not, whether she looked for work or not, whether she was poor or not.

Analyse the likely effects of such a program. What would happen to the labor force participation rates of men and women? What would happen to the ratios of male-to-female wages and male-to-female unemployment? What would happen to the overall rate and composition of unemployment, the distribution of income, and poverty?

Your answer should rely on formal economic concepts and information studied in class and in the readings. These might include income and substitution effects, human capital theory, marginal productivity theory, internal labor market theory, theories of unemployment, income distribution and poverty and discrimination. You may draw any graphs you like at the end of the question and refer to them in your answer.