ECONOMICS 771-01: LABOR ECONOMICS UNIVERSITY OF NORTH CAROLINA AT GREENSBORO FALL 2007 Instructor: Prof. David Ribar Office: 459 Bryan Building E-mail: [email protected] Phone: 336 334-3904 Class meetings: MW 9:00-10:50, 456 Bryan Bldg. Office hours: MWF 11 a.m. – 12 p.m. and by appointment Description: Economics 771 is a two-credit survey of labor economics. The course focuses on microeconomic models of labor supply, household decision-making, human capital, job search, and labor demand. The course emphasizes applied work and econometric methodology. Student Learning Outcomes: On completion of this course students will have: • learned several conceptual models that form the foundation of micro labor economics; • learned how advanced econometrics inform and are informed by the study of labor economics, and • conducted an independent research project. Texts: There is no specific, required text for the course. There are a number of undergraduate texts that cover the material at an introductory level and provide helpful institutional background. Foreign students and students who have not completed a previous labor economics course are encouraged to purchase or borrow an undergraduate text. Some recent textbooks include (earlier editions of any of these books would be okay): Borjas, George J. Labor Economics, 3rd edition. New York: McGraw-Hill/Irwin, 2005. Ehrenberg, Ronald G. and Robert S. Smith. Modern Labor Economics, 8th edition. Boston: Addison Wesley, 2003. Hotchkiss, Julie L. and Bruce E. Kaufman. The Economics of Labor Markets 7th edition. Thompson, 2006. McConnell, Campbell R., Stanley L. Brue and David Macpherson. Contemporary Labor Economics, 7th edition. New York: McGraw-Hill/Irwin. 2006 Instead of a formal text, book chapters, journal articles, and working papers will be assigned throughout the semester. In the reading list that follows, required articles are marked with an asterisk. Copies of all of these readings are available in my office and may be checked out by students. Where possible, I have also tried to incorporate articles that are available on-line into the course; these are indicated in the syllabus. Requirements: Students are required to attend and participate in twice-a-week seminar-type meetings over an eight-week period. Starting with the second class, students are expected to complete homework and reading assignments before each meeting, to prepare questions and comments about the assignments, and to contribute to discussions.A paper (~15 pages), a mid-term examination, and a final take-home examination will be used to assess students' comprehension of the course material. The paper may take the form of a literature review, an original theoretical model, a replicative empirical piece, and/or an original empirical piece. An outline of the paper is due the fourth week of the semester (September 12). The take-home final examination will be given out during the last class of the term. The final examination and final version of the paper will be due a week and a half later (October 19). Arrangements to reschedule the examination and paper due dates must be made with the instructor prior to the scheduled dates. The following weights will be applied in determining the final grade: Paper 50 % Mid-term examination 20 % Final examination 30 % In addition to these responsibilities, students are expected to conform to the University’s Student Code of Conduct (http://studentconduct.uncg.edu/) and the Bryan School’s Student Guidelines (http://www.uncg.edu/bae/faculty_student_guidelines.pdf). Research Integrity: Students are expected to be familiar with and abide by the University’s Academic Integrity policy (see http://academicintegrity.uncg.edu/). Although all aspects of the policy are relevant, students should review the policies regarding plagiarism and falsification. A researcher’s career depends on his/her honesty and integrity. I will seek the most severe punishments possible, including expulsion from the Ph.D. program, for any violations of the Academic Integrity policy. Students may not collaborate on the research project or the take-home exams. If students have a question about whether some type of collaboration is permissible, they should ask the instructor first. Office Hours: Scheduled office hours are Mondays, Wednesdays, and Fridays 11 a.m.-12 p.m. If you would like to meet outside of the scheduled office hours, please call or e-mail to set up an appointment. Proposed Course Outline Week 1 Review of the Simple, Static Labor Supply Model and a Discussion of Standard Empirical Techniques • Killingsworth, M. Labor Supply, New York: Cambridge University Press, 1983, chapters 1 and 2. • Blundell, Richard, and Thomas Macurdy. "Labor Supply: a Review of Alternative Approaches," in Handbook of Labor Economics Vol. 3A, edited by O. Ashenfelter and D. Card. Amsterdam: North Holland, 1999. • Moffitt, Robert A. "New Developments in Econometric Methods for Labor Market Analysis," in Handbook of Labor Economics Vol. 3A ed. by O. Ashenfelter and D. Card. Amsterdam: North Holland, 1999.Angrist, Joshua, and Alan B. Krueger. "Empirical Strategies in Labor Economics," in Handbook of Labor Economics Vol. 3A ed. by O. Ashenfelter and D. Card. Amsterdam: North Holland, 1999 Greene, W. H. Econometric Analysis, 5th ed. Upper Saddle River, NJ: Prentice Hall, 2003, chapters 21 and 22. Hamermesh, D.S. "The Craft of Labormetrics," Industrial and Labor Relations Review 53:3 (April 2000), 363-80. Killingsworth, M. Labor Supply. New York: Cambridge University Press, 1983, chapters 3 and 4. Killingsworth, Mark, and James Heckman. "Female Labor Supply: A Survey," in Handbook of Labor Economics, vol. 1, edited by O. Ashenfelter and R. Layard. Amsterdam: North Holland, 1986. Mroz, Thomas. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, 55:4 (July 1987), 765-99. Pencavel, John. "Labor Supply of Men: A Survey," in Handbook of Labor Economics, vol. 1, edited by O. Ashenfelter and R. Layard. Amsterdam: North Holland, 1986. Week 2 Taxes, Transfers and Nonlinear Budget Constraints • Killingsworth, Labor Supply, New York: Cambridge University Press, 1983, chapter 6. • Blank, R. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, 40:4 (December 2002), 1105-66. (Available on-line through JSTOR).