ECON 69a : The Economics of Race and Gender

Spring 2017

Tuesday and Thursday, 5-6:30pm , Lemberg 55

Instructor: Smriti Rao

Office: Sachar 11-B

Office hours: 4 :00 -5 :0 0 pm, Tuesday and Thursday.

T eaching Assistant: Lea McDaniel

This course deals with a field so vast and rich we would be hard pressed to do justice to it across multiple courses, let one alone this single, introductory level course. Instructors of this course have to make a quintessential ‘economic’ decision: how to organize the course so as to maximize the educational value of our scarce time together.

This course has thus been narrowed down to a microeconomic analysis of race and gender in the labor market, and the US labor market in particular. The social construction of race and gender varies quite significantly across countries and cultures, and casting our collective class net too far and wide may mean that we sacrifice depth and insight. Students who are interested in going beyond this relatively narrow focus are welcome to meet with me to discuss further reading.

The course also presents us with a further challenge. Almost all of the research done by economists uses fixed categories of ‘male’ and ‘female’ or ‘black’ and ‘white’, even as it has become clear that such categories may be far from fixed. While acknowledging this fundamental problem, the course is of necessity organized around those categories. I hope we will have an ongoing conversation about this issue and some ways that economists and other social scientists may begin to address this challenge.

Course Description :

Economics 69a provides an introduction to the economics of race and gender with an emphasis on policy issues. We will learn and use the tools of microeconomic analysis to understand how economists model individual decision-making in labor markets, and to gain insight into how microeconomic theory can explain some of the changes experienced by women and minorities in the United States and other countries over the last century.

Learning goals:

The primary goal of the course is to develop your ability to study, analyze and ultimately reach informed opinions about the numerous policy questions that arise with respect to race and gender in the labor market. To help develop this ability, we will study these policy issues drawing on economic models of labor markets, an examination of the role of labor market institutions, and empirical evidence on these issues.

Specific learning outcomes:

After successfully completing this course, students will be able to apply and explain at an introductory level the economic models that:

a) describe how economic theory and evidence apply to and explain the trends in women’s

and minorities’ labor market experiences over the past 50 years

b) demonstrate proficiency with simple quantitative and economics tools useful in

understanding the changing role of women and minorities in the economy.

Prerequisite: Economics 2a or Economics 10a

Course materials: There is no required textbook for the course. Chapters from relevant textbooks and articles from economics journals and the popular press are required reading and will be posted on the course website on Latte. You are responsible for all assigned reading, whether or not the material is covered explicitly in class.

Course Evaluation Components

Success in this four- credit course is based on the expectation that students will spend a minimum of 9 hours of study time per week in preparation for class (readings, discussion sections, preparation for quizzes, etc.)

Your grade will be based on:

Problem sets: 15%

E-responses to readings: 10%

Class participation: 15%

Two quizzes: 30%

Final exam(cumulative): 30%

Class Participation

As you can see, class participation is a very important component of your grade. It is also the key to a stimulating classroom atmosphere that will help all of us get more out of the course!

You must complete the assigned readings before coming to class. As you read these articles, think about points the authors make that you disagree with, that are not clearly explained, or that you believe are not well supported by evidence and then share your questions/comments/critiques with the class. Also keep an eye out for interesting and relevant current events that you might want to discuss in class.

E-responses to readings:

The class Latte site will list questions based on the readings, for 10 classes in the semester. You are required to post timely answers (by 9am on the due date) to at least 9 out of the 10 in order to receive full credit for this segment.

Problem set s, Quizzes and Final exam :

The syllabus lists the following tentative dates for problem sets and quizzes.

Problem Set 1: Due Feb 2

Problem set 2: Due Feb 16

Problem set 3: Due March 16

Problem set 4: Due March 28

Problem set 5: Due April 25

Quiz 1: March 7

Quiz 2: April 6

I will drop your lowest problem set score, so that problem set grades will be based on your highest four scores. Please note that late problem sets will not be accepted under any circumstances.

No make-up exams or quizzes will be given in this course. Please note that absence from an exam or quiz will be excused ONLY for a serious illness or family emergency that is appropriately documented; otherwise a grade of zero will be assigned. There are NO EXCEPTIONS to this rule. For documented, legitimate absences, the weight of the exam or quiz will be added to the final exam weight.

Recitations: TBA

Laptop, tablet and cell phone policy: I come to class to help you learn, and I assume that you

are here because you want to learn. Using a cell phone, tablet or laptop to talk, text, email, or

surf the internet is both disrespectful and distracting to me and to your fellow students. Because

of this, the use of cell phones, tablets, and laptops in class is prohibited. If you must take a call

due to an emergency situation, please leave the classroom. If you are unable to take notes

without the use of a laptop, please speak to me.

Special accommodations: If you are a student with a documented disability on record at

Brandeis University and wish to have a reasonable accommodation made for you in this class,

please see me immediately. Please keep in mind that reasonable accommodations are not

provided retroactively.

Academic honesty: You are expected to be familiar with and to follow the University’s policies

on academic integrity (see ndeis.edu/studentlife/sdje/ai/). Instances of alleged

dishonesty will be forwarded to the Office of Campus Life for possible referral to the Student

Judicial System. Potential sanctions include failure in the course and suspension from the

University. If you have any questions about my expectations, please ask. Academic dishonesty

will not be tolerated.

Syllabus

This is a tentative schedule. There may be small changes to the syllabus over the course of the semester, depending upon the pace at which we are able to cover material.

Readings marked with an asterisk are compulsory.

Jan 17 and 19

Introduction to Homo Economicus

*Becker, Gary. The Economic Approach to Human Behavior.

*Randy Albelda, Robert Drago and Steven Shulman. The Basics of Neo-Classical Economics.

*Hoffman and Averett. 2004. Excerpt on Empirical Analysis in Economics from Women and the Economy.

E-response for Jan 19:

a. Highlight any one term or statement in either the Becker or Albelda reading that you found confusing/unclear/unfamiliar.

b. Becker provides a number of ‘testable’ hypotheses that the economic approach generates. State any one hypothesis that might be especially relevant to this class.

Jan 24 and 26

Challenges to Homo Economicus

*Nelson, Julie. Feminism and Economics

*Arrow, Kenneth. What has Economics to say about Racial Discrimination?

*Loury, Glenn. Social Exclusion and Ethnic Groups: The Challenge to Economics

E-response for Jan 26:

a. Present any one difference between Becker’s approach (from last week) and that of Nelson and Arrow respectively.

b. Highlight any one statement/argument in the Nelson or Arrow reading that you found confusing/unclear.

Problem Set 1: Due Feb 2

Jan 31 and Feb 2

Trends in Labor Force Participation and Earnings

*Blau F., Ferber, M and Winkler, A. (BFW). Economics of Women, Men and Work, 7th edition. Chapter 5

*Avilas, J. Losing Ground: Demographic trends in the US labor market (you may skip the section on Age and Labor Force Participation)

*Wilson and Rogers. Black-white wage gaps expand with rising wage inequality.

*Autor, David. The polarization of job opportunities in the US labor market.

Feb 7

Incorporating Unpaid Labor

*Folbre, Nancy. Valuing Unpaid Work.

*Duffy, M. Doing the Dirty Work: Gender, Race and Reproductive Labor in Historical Context.

E-response for Feb 9:

a. Highlight any term/statement/argument that was confusing or unclear in the Folbre and Duffy readings

b. State any o ne insight/ fact you learned from either of these two readings.

Feb 9, 14, 16 , 28

Labor Supply Decisions

*BFW text Ch 6

*Davis, Angela. The legacy of slavery: Standards for a new womanhood.

*Francine D. Blau and Lawrence M. Kahn. Female Labor Supply: Why is the United States Falling Behind?

Holzer et al. 2005. Declining employment among young black less‐educated men: The role of incarceration and child support

E-response for Feb 14 :

a. State any one way in which the Angela Davis chapter adds to/contradicts what you learned from the BFW text.

b. State any term/statement/argument tha t was confusing or unclear in the BFW or Davis readings.

Problem set 2: Due Feb 16

A pplication: Welfare R eform

*David Ellwood. 2000. Anti-Poverty Policy for Families in the Next Century: From Welfare to Work – and Worries.

*DeParle J. Welfare Limits Left Poor Adrift as Recession Hit,” New York Times, April 7, 2012

Optional: Rebecca Blank. Evaluating Welfare Reform in the United States. 1109-1126 and 1139-1145.

E-response for Feb 28:

a. Does the DeParle article confirm the arguments that Ellwood made? Why or why not?

b. State any term/statement/argument that was co nfusing or unclear in the Blau and Kahn (Female Labor Supply: Why is the US Falling Behind) article .

Quiz 1: March 7

Mar 2 , 9 and 14

Surveying Occupational Segregation and Earnings Gaps

*BFW Text: Chapter 7

Diane Elson and Ruth Pearson. 1981.Nimble Fingers Make Cheap Workers: An Analysis of Women’s Employment in Third World Manufacturing. Pages 87-99. (This is an article from 1981, and much has changed since then, but there is still no better statement of the arguments they make!)

E-response for March 9 :

a. Based on the BFW text, what appea r to be any two reasons for the persistence of a gender earnings gap?

b. Provide any one question/comment you are left with after reading the section on the earnings gap.

Application: Evaluating relative changes in male earnings

*Autor and Wesserman. 2013. Wayward Sons: The Emerging Gender Gap in Labor Markets and Education

* The New York Times. Why Men Don’t Want the Jobs Mostly Done by Women (do read the article on the NY Times website so you can look at the comments section. It is fascinating).

* Dill, J et al. Does the Glass Escalator Compensate for the Devaluation of Care Work Occupations.

Borjas et al. Immigration and the Economic Status of African-American Men

E-response for March 14:

a. Based on the Autor and Wesserman(pages 18 to 26 only) and NYTimes articles, to what extent does the lack of entry of men into female professions appear to be a rational choice? Provide any one reason for your answer.

b. What is the “glass escalator” effect? Do the authors believe it will result in higher shares of men in “female” occupations?

Problem set 3: Due March 16

Mar 16 , 23 and 28 (Class cancelled on March 21 )

The Impact of Human Capital

*BFW Text: Chapter 8

*Claudia Goldin et al. 2006.The Homecoming of American Women: The Reversal of the College Gender Gap.

AAUW. Gender Gaps: Where Schools Still Fail Our Children. (Executive Summary).

Charles Ballard and Marianne Johnson. Gender Expectations and Grades in Introductory Microeconomics at a US Institution.

Application: Reducing the racial gap in educational attainment

*Card and Rothstein. 2007. Racial Segregation and the Black-White Test Score Gap (Read the Introduction and Conclusions only)

*Heckman, J. The American Family in Black & White: A Post-Racial Strategy for Improving Skills to Promote Equality

Jens Ludwig et al. 2013.Long-Term Neighborhood Effects on Low-Income Families: Evidence from Moving to Opportunity.

*David Brooks, “The Harlem Miracle,” New York Times, May 8, 2009

*C Sharon Otterman, “Lauded Harlem Schools Have Their Own Problems,” New York Times, Oct. 12, 2010

E-response for March 21 :

a. According to Card and Rothstein, how important is the human capital gap in explaining the racial ear nings gap?

b. According to the Heckman article, what is the particular kind of skills gap we need to be concerned about? What is any one policy solution he suggests to address this skills gap?

c. State any point of confusion/unclear statement from the Card and Rothstein or Heckman articles.

Problem set 4: Due March 28

March 30 and April 4

The Role of Discr imination

*BFW Text: Chapter 10

*Claudia Goldin and Cecilia Rouse. Orchestrating Impartiality: The Impact of Blind Auditions on Female Musicians.

*Alan B. Krueger, “Sticks and Stones,” New York Times, Dec. 12, 2002

*Robert J. Barro, “What’s in a Name for Black Job Seekers?” BusinessWeek, Nov. 3, 2003

E-response for April 4 :

a. Explain the main findings of the Goldin and Rouse paper.

b. Provide any question/point of confusion you may have after reading the BFW text Ch 10 an d the Goldin and Rouse paper.

Quiz 2: April 6

Apr 18 and 20

Economic Approach es to Discrimination

*BFW Text: Chapter 11 pages 253-262

*Randy Albelda, Robert Drago and Steven Shulman. The Political Economy Model of Discrimination.

E-response for April 20 :

a. What are two ways that the Political Economy model of discrimination differs from the Becker ian version .

b. State any term/claim/point of confusion in the BFW and Albelda et al articles that you would like clarified. .

Problem set 5: Due Apr 25

Apr 25 and 27 : Evaluating Solutions

*BFW tex t Ch 12

Changes in the Nature of Work

Goldin, Claudia. 2014. A Grand Gender Convergence: Its Last Chapter.

Affirmative Action.

BFW text pages 242-245.

*Harry J. Holzer and David Neumark, 2006. Affirmative Action: What Do We Know?

*Jonathan Leonard. Women and Affirmative Action.

Reparations

Darity, W and Frank, D. 2003.The Economics of Reparations.

May 2

Catch up and review for final exam