Economics 152

Wage Theory and Policy


Course Time:  Tuesday and Thursday, 12:30-2:00 PM, 277 Cory

Office Hours: 

Professor Brown: Thursday 10-12 at IIR, 2521 Channing Way

Cindy Gustafson: Wednesday from 10:30 to 12:30 in Evans office

Ben Campbell: Tuesday 9:30-11:30 at IIR
 

Section Times:

Section 101:     Wednesday 8-9AM, 81 Evans, GSI: Cindy Gustafson
Section 102:     Wednesday 9-10AM, 50 Barrows, GSI: Cindy Gustafson
Section 103:     Monday 2-3PM, 81 Evans, GSI: Ben Campbell
Section 104:     Monday 3-4PM, 81 Evans, GSI: Ben Campbell


Course Overview and Objectives:

This course teaches how the US labor market functions. In particular, we focus on how demand and supply of labor along with institutions determine wages and employment. We will also study the role of public policy in affecting labor market outcomes. In class we will apply the theory to analyze the current economy, especially the US labor market, and students will be required to read either the Wall Street Journal or the New York Times.

By the end of the course, students should be familiar with the performance and characteristics of the current U.S labor market, understand theories of how labor markets function, and be able to present and argue for specific policy approaches to current labor market problems.


Grading:
         Final grade will be based on a maximum of 240 points:
         60 points             Two Problem Sets and One Short Paper
         60 points             Midterm Exam
         100 points           Final Exam
         20 points             Participation
 

Required Background: Intermediate microeconomic theory.
 

Readings:
Text: Ronald G. Ehrenberg and Robert S. Smith, Modern Labor Economics: Theory and
Public Policy (Sixth Edition), 1997.
Reader: Eleven additional readings; availability will be announced at the first class.
Newspaper: Students are expected to read the Wall Street Journal or the New York Times Monday through Friday of each week and participate in class discussions of current labor market events.

Required readings average about 30 pages of text and 15 pages of outside reading plus the newspaper each week. You are expected to do all the reading.
 

Course Requirements:
Students are expected to complete all reading before each class and to attend all lectures and sections, as class participation is important.  Requirements include two out of three problem sets (student's choice), a short paper, a mid-term exam, a final exam, and class participation.

All class handouts (e.g., problem sets and solutions) will be available at in 649 Evans Hall and on the Class Web Site.

The problem sets/paper must be turned in during section the weeks of February 15, March 1, April 12, and May 3. The assignments will be handed out 3-4 lectures (about 10 days) before the due date.

Late problem sets will not be accepted.  No exceptions.
You cannot miss the midterm since there will be no make-up exam for  the midterm.
The only acceptable absences from final exam are: documentation from a hospital/medical center if you are seriously ill; documentation from a family doctor or minister if there is a death in the family.
Incompletes in this course must be granted by the chair of the department, who will grant them only in extraordinary circumstances.



Course Calendar:
Week of:
January 18:             Introduction and Overview of the U.S. Labor Market
January 25:             Labor Demand: Basic Theory
February 1:             Labor Demand: Elasticities, Minimum Wage, Quasi-Fixed Factors
February 8:             Labor Supply: The Static Case
February 15:           Labor Supply: Dynamic Issues
February 22:           Human Capital I: Economics of Education
March 1:                Human Capital II: Training
March 8:                Mid-Term Exam on March 11
March 15:              Pay and Productivity
March 22:              SPRING BREAK!!!
March 29:              Discrimination by Race, Ethnicity and Gender
April 5:                  Discrimination by Race, Ethnicity and Gender: continued
April 12:                Immigration and Mobility
April 19:                Wage inequality, Technology and Trade
April 26:                Unemployment
May 3:                  Wrap Up and Review
May 19                 Final Exam 5-8PM (Location to be announced.)



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Last Updated January 14, 1999 by Ben Campbell
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