Economics 27: Labor EconomicsProfessor Patricia M. Anderson

DARTMOUTH COLLEGE

Department of Economics

SYLLABUS

Spring 2003

This course provides a general introduction to the field of labor economics and as such is an application of basic microeconomic principles. Our approach to studying labor economics will be both theoretical and empirical. That is, not only will we discuss models of how labor markets function, we will also discuss the evidence on how well the real world matches the predictions of such models.

Course Web Site

The course web site is This page is also linked through Blackboard.

Textbook and Additional Readings:

Borjas, George J., Labor Economics, 2nd edition, 2000.

The text’s treatment of the topic covered on each day is shown on the syllabus. Reading this ahead of time will prepare you to get the most out of class. Articles will also be used to supplement the text and to spark in-class discussion. All can be accessed on-line through this document on the course web site.

Requirements:

There will be one in-class exam and a comprehensive final exam. Ungraded practice problems will be in the same format as and serve as practice for these exams. There will be a course project involving both an in-class group presentation of a policy debate and a graded individually-written policy memo. Class participation will be based on a) having turned in answers to the practice problems and taking part in the discussion of them, b) participating in the discussion of the in-class readings, and c) participating in the scheduled policy debates. The dates for each of these are noted on the syllabus.

Grading:

Your final grade will be based on the following:

Class Participation 10%

Course Project 20%

In-Class Exam 30%

Final Exam 40%

Total100%

Office Hours:

Except as noted on the Class Schedule, my open office hours (316 Rockefeller) are Tuesdays from 2:00 to 5:00 during which time you can stop by without an appointment. Appointments are also available to meet with me outside of my open office hours. If you would like to set up an appointment, please contact me by BlitzMail (Patricia M. Anderson), or talk to me in class about a mutually agreeable time.

Economics 27: Labor Economics Professor Patricia M. Anderson

Monday / Tuesday / Wednesday / Thursday / Friday
March 24 / March 25 /

March 26

INTRODUCTION
B1 / March 27 /

March 28

BASICS
B1 appendix, B5.1-B5.3, B5.6,B4.1-4.2

March 31

LABOR DEMAND
A1, B4.3-4.6, B5.7 /

April 1

(x-hour)
office hours 2:00 to 5:00
LABOR DEMAND
B4.7-B4.10 /

April 2

DEMAND WRAPUP/ LABOR SUPPLY
A2, B4.11, B2.1-B2.4 / April 3 / April 4

NO CLASS

(x-hour this week)

April 7

LABOR SUPPLY
B2.5-B2.11
Discuss PS1 / April 8
open office hours
2:00 to 5:00 /

April 9

LABOR SUPPLY
A3, B3.1-B3.6 / April 10 /

April 11

COMPENSATING DIFFERENTIALS
B6.1-B6.4

April 14

COMP DIFS / HUMAN CAPITAL
B6.5, B7.1-7.4
Discuss PS2 / April 15
open office hours
2:00 to 5:00 /

April 16

HUMAN CAPITAL
B7.5-B7.7 / April 17 /

April 18

HUMAN CAPITAL
B7.8-B7.11

April 21

MOBILITY
B9.1-B9.11
Discuss PS3 / April 22
NO OFFICE HOURS
(special hours on Thursday) /

April 23

PAY & PRODUCTIVITY
A4, B12.1-12.5 / April 24
special
open office hours
2:00 to 5:00 /

April 25

IN-CLASS EXAM

April 28

DISCRIMINATION
B10.1-B10.6 / April 29
open office hours
2:00 to 5:00 /

April 30

TAX POLICY DEBATE

DE1, B2.10-B2.11 / May 1 /

May 2

DISCRIMINATION
A5, B10.7-B10.10

May 5

INCOME INEQUALITY
B8.1-B8.5
Discuss PS4 / May 6
open office hours
2:00 to 5:00 /

May 7

IMMIGRATION DEBATE
DE2, B5.4,B9.7 / May 8 /

May 9

UNEMPLOYMENT
A6, B13.1-13.5

Economics 27: Labor Economics Professor Patricia M. Anderson

Monday / Tuesday / Wednesday / Thursday / Friday

May 12

UNEMPLOYMENT/ UNIONS
B13.6-B13.10, B11.1-B11.2
Discuss PS5 / May 13
open office hours
2:00 to 5:00 /

May 14

AFFIRMATIVE ACTION DEBATE
DE3, B10.8-B10.9 / May 15 /

May 16

UNIONS
B11.3-B11.6

May 19

UNIONS
B11.7-B11.8 /

May 20

(x-hour)
office hrs
2:00 to 5:00
ARBITRATION
A7, B11.9 /

May 21

EDUCATION REFORM DEBATE
DE4, B7.1,B7.5 / May 22 /

May 23

ARBITRATION
& WRAP UP
Discuss PS6
May 26
MEMORIAL DAY HOLIDAY
Reading Period / May 27
open office hours
2:00 to 5:00 /

May 28

NO CLASS

(x-hour last week)
COURSE MEMO DUE BY 4:00! / May 29
open office hours
2:00 to 5:00
Reading Period / May 30
Start of Exam Period
OUR EXAM IS AT 10:30 on Monday June 2

The above schedule represents the basic topics I expect to cover in class each day. We will definitely cover topics in the order indicated, but the actual schedule may slip a bit. The sections in which that topic is covered by the Borjas text are represented by B#.#. Not everything discussed in class will be in your textbook and vice versa, but it is the best preparation for class. Additionally, important figures will be available as PowerPoint slides on our course web site. Supplementary articles to be discussed in class are represented by A# while those for the policy debates are represented by DE#. The documents “In-Class Discussion Articles and Questions” and “In-Class Policy Debate Readings and Questions” include links to the articles, as well as questions to consider while reading the articles and questions to help you prepare for participation in class discussions. Both sets of readings are also listed (along with their links) on the final page of this syllabus.

Note that the date of the in-class exam (FridayApril 21) is clearly marked – if you have an unavoidable conflict, discuss this with me immediately. In general, exams may not be postponed. The final exam has been scheduled by the registrar for Monday June 2 at 10:30 (room TBA). It can only be rescheduled when you have another exam scheduled for that time or have 3 exams scheduled for that day. Check now.

The course project involves both an in-class group presentation (in the form of a policy debate) taking place on each of the last 4 Wednesdays of class, and an individually written memo due WednesdayMay 28. Make note of the date now, as no late papers will be accepted! Additional details about the project will be provided and group assignments made after the first weeks of class, but note the dates now.

Finally, also pay attention to the occasional use of x-hours.

IMPORTANT NOTICE FOR STUDENTS WITH SPECIAL NEEDS

Any student with learning, physical or psychiatric disabilities who may need disability-related classroom accommodations is requested to speak with me by April 10. The Academic Skills Center in 301 Collis Center will be asked to verify that you are registered for these services. All discussions will remain confidential, although the Student Disabilities Coordinator may be consulted to discuss appropriate implementation.

Economics 27: Labor Economics Professor Patricia M. Anderson

Articles Available On-line

To Prepare for In-Class Discussion (A#)

(A1) Bruggink, Thomas H. and David R. Rose, Jr., "Financial Restraint in the Free Agent Labor Market for Major League Baseball: Players Look at Strike Three,"Southern Economic Journal, April 1990, pp. 1029 – 1043.

(A2) Card, David and Alan B. Krueger, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania,"American Economic Review, September 1994, pp. 772 - 793.

(A3) Besharov, Douglas J., “The Past and Future of Welfare Reform,” Public Interest, Winter 2003, pp. 4 - 21.

(A4) The NewsHour, “CEO Compensation: Excessive Pay or Reasonable Rewards?” December 2 – 5, 2002. (Read the transcripts or watch the streaming video of each of the 4 nights of this special report).

(A5) Bertrand, Marianne and Sendhil Mullainathan, “Are Emily and Brendan More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination,” mimeograph, 2002.

(A6) Campbell, Carl and Kunal Kamlani, "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," Quarterly Journal of Economics, August 1997, pp. 759-790.

(A7) Burgess, Paul L.and Daniel R. Marburger, "Do Negotiated and Arbitrated Salaries Differ Under Final-Offer Arbitration," Industrial & Labor Relations Review, April 1993, pp. 548 - 559.

To Prepare for Participation in Policy Debates (DE#)

(DE1) Mitrusi, Andrew and James Poterba, “The Distribution of Payroll and Income Tax Burdens, 1979-99,” National Tax Journal, September 2000 Part 2, pp. 765 – 794.

(DE2) Scheve, Kenneth F. and Matthew J. Slaughter, “Labor Market Competition and Individual Preferences Over Immigration Policy,” The Review of Economics and Statistics, February 2001, pp. 133-145.

(DE3) Cancion, Maria, “Race-Based Versus Class-Based Affirmative Action in College Admissions,” Journal of Policy Analysis and Management, Winter 1998, pp. 94 – 105.

(DE4) Card, David and Alan B. Krueger, “School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina” Journal of Economic Perspectives, Fall 1996, pp. 31 – 50.

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