Download Labor economics (econ 426) Fall 2016

Labor economics (econ 426)
Fall 2016
Wladimir Zanoni
[email protected]
Background:
The objective of this course is to provide students with basic concepts, tools and approaches to the
study labor economics. In order to achieve that goal, the course will systematically review existing
theoretical, empirical and policy literature on current topics. More specifically we will provide a
comprehensive framework to understand economic problems to:
– Understand the individual choices of working and investing in human capital (of self and children).
– Asses what are the effects of government interventions and institutions in shaping those choices.
– Acquire basic “hands on” experience answering labor economic questions using real data
Students are required to have working knowledge of microeconomic theory (formal methods at the
level of intermediate microeconomics) as well as fundamentals of statistics and regression analysis.
Emphasis in formal theoretical and empirical methods will be given.
Grading:
Grades for the course will be based on three evaluations:
1) Midterm: 30% of the grade (October 20)
2) Practicum: 30% of the grade (due November 10; content will be discussed in class)
3) Final exam: 40% of the grade (on last week of class)
No delayed problem sets or exams will be granted, unless the student has a valid medical note
presented or prior approval has been given by the instructor. Medical and other reasons for missing
exams need written confirmation.
BOOKS:
Borjas. Labor Economics. McGraw Hill.
The Economics of Women, Men and Work: Francine D Blau, Marianne A Ferber, Anne E Winkler:
Office hours:
Will be held In Leacock 437. Thursdays 4:30-6:00PM.
Course content
1. Foundations of labor supply
o Microeconomic foundations
o Family economics and labor supply
o The decision to work
2. Digression on how do economists evaluate the effects of government interventions
o The evaluation problem and the fundamental evaluation questions
o Fundamental methods
 The Roy model
 Treatment effects and program evaluation
o Common econometric estimators: how they solve the evaluation problem?
3. Government interventions and the supply of labor
o Child care subsidies
o Training programs
o In-cash unconditional and conditional transfers (welfare/EITC)
o What does the empirical evidence say?
 Childcare subsidies in the US and Canada
 Welfare transfers and the incentives to work
 JTPA and WIA effects
4. Human capital investments
o Human skills: cognitive vs. non-cognitive skills (Heckman)
o Education and human skills
 Gender differences in education
o Acquisition of skills along the life cycle
 Some theory: skills formation models
 The role of the family: quantity and quality of children, investments in human
capital of children
 The role of government
5. The life cycle dynamics of earnings
o Theory
o Inequality in human skills and in earnings
6. Practicum I: using survey data to answer labor economics questions
o Surveys sampling, design and methods (the NSECE)
o Producing descriptive statistics
7. Labor market discrimination
o Statistical discrimination
o The economic cost of prejudice and discrimination
8. The economics of migration
o Theory and evidence
9. Minimum wages and unemployment
o Theory and evidence (developed and developing countries)