Labor economics - Spring, 2013 - 2014, Mariola Pytlíková & Daniel Münich Mon 10:30-12:00 and 1:30-3:00pm (Pytlíkova but watch here for exceptions!) Wed 1:30 -3:00pm (Münich but watch here for exceptions!) Sometimes, lecture will be given on Fri Office hours: upon request Course outline | |
FINAL EXAM: Friday, April 4, sharp start at 3pm in #320 | |
ASSIGNMENT | Downloand ZIP file with empirical assignment and data and supporting information - Deadline is due to 7 days before Monday of the Final Exam week. - We expect you to collaborate in workgroups of 3-4 students delivering one written output per group! Make sure that all group members are involved, understand the analysis and the output (could replicate it on their own!) - Electronic version in PDF or MS Word to Daniel Münich is enough. - if somethimng is not clear, do not hessitate to ask Tetyana and if she does not know, ask DM. |
26 March - WED 10:30am (preliminary!) | Excercise session: Introduction to programming |
26 Mar - WED 1:30pm - 3pm (Münich) | Wrap-up and discussion of exam options |
19 Mar - WED 1:30pm - 3pm (Münich) | Topic: Household production continued, extensions (more activities, life-long horizon, business-cycle, estimation) Borjas Labor Economics (5th edition; pp 64-77) Handnotes: Household_production_cases.pdf Optional readings: Madalla_Estimation_LS.pdf (pages 231 - 233)
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17 Mar - MON (Pytlíková) | 10.30-12.00 Pay and productivity, efficiency wages, ownership, part I 14.00-16.30 Pay and productivity, efficiency wages, ownership, part II Handout: Pytlikova_Ownership_Hit-seminar.pdf Lec_LE_Pay and Productivity_2014_1.pdf
Reading list:
Pay and productivity, efficiency wages, ownership (if time: Effects of international trade and FDI)
Mandatory: Borjas: Labour Economics; chapter 11: Incentive Pay
Optional:
Lazear E. (2000), “Performance Pay and Productivity”, American Economic Review, Vol. 90 Niederle, Muriel and Lise Vesterlund (2007), “Do Women Shy Away from Competition? Do Men Compete Too Much?”,
Quarterly Journal of Economics 122(3): 1067- 1101. Estrin, S., Hanousek, J., Kocenda, E. and Svejnar, J. (2009). ‘The effects of privatization and ownership in transition economies’, Journal of Economic Literature, 47, pp. 699–728. |
13 Mar - THU 4:30-6:00pm | Lecture by prof.Jan Svejnar: Labor Demand!!! Room #6 Readings: Svejnar, Basu, Estrin: Employment Determination in Enterprises under Communism and in Transition: Evidence from Central Europe + TABLES + presentation handout Mandatory readings: Notes on labor demand (Orley Ashenfelter) |
12 Mar - WED 9:00-10:30 1:30pm - 3pm (Münich) | 2nd round of presentations of topics selected for critical literature review: attendance mandatory! Detailed instructions here Table with presentations here. Presentations within a day will follow the order in the table! |
10 Mar - MON 10:30-12:00 (Pytlíková) | 1st round of presentations of topics selected for critical literature review: attendance mandatory! Detailed instructions here Table with presentations here. Presentations within a day will follow the order in the table! |
5 Mar - WED 1:30pm - 3pm (Münich) | Topic: Household production Handnotes: Taxation_of_labor_and_household_production.pdf Readings:
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4 March - TUE | Introduction to Programming in Stata (not .DO files but scripting own commands) |
3 Mar - MON | no lectures |
26 Feb - WED 1:30pm - 3pm (Münich) | Labor supply III - taxation of labor Handnotes: Taxation_of Labor |
25 Feb - TUE | Useful Stata Commands (including margins, test, ttest, estout, rego and some other ones). Materials here. |
24 Feb - MON (Pytlíková) | Make-up lectures for the one canceled on Feb 17 10.30-12.00 Minimum wages, unions, barganing Handouts Lec_LE_Minimum wages, unions,bargaining_2014.pdf Mandatory readings: Borjas: Labour Economics: Labour Market Equilibrium, Chapter 4; Borjas: Labour Economics: Labour Unions, Chapter 10; Card D. and Krueger A. (1994) ‘Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania’, American Economic Review 84: 772–793. Optional readings: Neumark, David; Wascher, William (December 2000). "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment". The American Economic Review 90 (5): 1362–96. doi:10.1257/aer.90.5.1362. Eriksson, T. and M. Pytlikova (2004): "Firm-level Consequences of Large Minimum Wage Increases in the Czech and Slovak Republics". Labour. Vol. 18, No.1, pp. 75-103. Popular media and policy reports: The Economist: Minimum wages: the logical floor. Dec 14th 2013: http://www.economist.com/news/leaders/21591593-moderate-minimum-wages-do-more-good-harm-they-should-be-set-technocrats-not 13.30-15.00 Income inequality Mandatory readings: Borjas: Labour Economics: The wage structure, Chapter 7;
Optional readings: Thomas Lemieux, Bentley MacLeod and Daniel Parent, (2009): “Performance Pay and Wage Inequality.” Quarterly Journal of Economics 124(1), February 2009, 1-49 Card, D. and DiNardo, J. (2002). ‘Skill biased technological change and rising wage inequality: Some problems and puzzles’, Journal of Labor Economics, 20, pp. 733–783. John Van Reenen, Guy Michaels and Ashwini Natraj (2014): ” Has ICT Polarized Skill Demand? Evidence from Eleven Countries over 25 Years, Forthcoming Review of Economics and Statistics Autor, D. & Wasserman, M. (2013) “Wayward Sons” http://www.thirdway.org/publications/662 Bell, B. & Van Reenen, J. (2013) “Bankers’ pay and extreme wage inequality in the UK”, Economic Journal http://cep.lse.ac.uk/pubs/download/occasional/op035.pdf Journal of Economic Perspectives (2013) Special Issue on The Top 1% http://www.aeaweb.org/articles.php?doi=10.1257/jep.27.3 Van Reenen, J. (2011) “Wage Inequality, Technology and Trade: 21st Century evidence”, Labour Economics http://cep.lse.ac.uk/pubs/download/occasional/op028.pdf Popular media and policy reports: IHNED dialog about inequality in the Czech Republic (in Czech) from February 2014:http://dialog.ihned.cz/machacek/c1-61661470-jaka-rizika-tkvi-v-rostoucich-nerovnostech-prijmu-bohatych-a-chudych Blog VOX by John Van Reenen on US income inequality. http://www.voxeu.org/article/inequality-and-us-election-elephant-room |
19 Feb - WED 4:30pm - 6pm (Tetyana) | Excercise session: Artificial data for the Human Capital model.Artificial data for the Human Capital model. Materials available here. |
19 Feb - WED 1:30pm - 3pm (Münich) | Labor supply II Mandatory readings: G. Borjas, Labor Economics (5th edition), Post-school Human Capital investment pp.268-276 G. Borjas, Labor Economics (5th edition), The Labor Supply Curve etc pp.42-62 Changes in the Labor Supply Behavior of Married Women: 1980–2000, Francine D. Blau and Lawrence M. Kahn, Source: Journal of Labor Economics, Vol. 25, No. 3 (July 2007), pp. 393-438, Jstor Optional readings Association Changes in Labor Force Participation in the United States: Chinhui Juhn and Simon Potter, The Journal of Economic Perspectives, Vol. 20, No. 3 (Summer, 2006), pp. 27-46, Jstor Handnotes: Optimal_choice_of_Edu_Firm_Specific_HC.pdf |
17 Feb - MON (Pytlíková) Was canceled du to a sickness. Will be made up! | 10.30-12.00 Minimum wages, unions, barganing 13.30-15.00 Income inequality |
14 Feb - FRI | no lectures |
12 Feb - WED 1:30pm - 3pm H(Münich) | Human capital II: properties of Mincerian model, extenstions, estimation approaches, settbacks, etc. Handnotes: Labor_notes_Estimating_Mincer_1.pdf Readings: Life_cycle_human_capital_model_by_Jacob_Mincer.pdf Optional readings: Altonji, J. G. & Dunn, T. A. (1996). sing siblings to
estimate the effect of school quality on wages, Review of Economics and Statistics, 78(4), 665-671. Angrist, J. D. (1999).
Using Maimonides’ Rule to Estimate the Effect of Class Size on Scholastic
Achievement. Quarterly Journal of Economics, 114(2), 533-575. Angrist, J. A. & Krueger A.B. (1991). Does
compulsory school attendance affect schooling and earnings, Quarterly Journal of Economics 106(4),
979-1014. Ashenfelter, O & Krueger, A. (1994). Estimates of the Economic Returns to
Schooling From a New Sample of Twins. American
Economic Review. 84(5), 1157-1173. Becker, G.S. (1972). Schooling and inequality from
generation to generation – comment, Journal
of Political Economy, 80(3), S252-S255. Behrman,
J.R. & Birdsall, N. (1983). The
quality of schooling – quantity alone is misleading, American Economic Review, 73(5), 928-946. Griliches, Z. (1977). Estimating Returns to Education
– Some Econometric Problems. Econometrica,
45(1), 1-22. Harmon, C. &
Walker, I. (1995). Estimates of the economic return to schooling for the United
Kingdom, American Economic Review 85(5), 1278-1286. McMahon, W. W. (2000). Education
and Development: Measuring the Social Benefits. Clarendon Press. Mincer, J. (1958).
Investment in Human Capital and Personal Income Distribution. Journal of
Political Economy, LXVI(4), 281-302. Mincer, J. (1974). Schooling,
experience, and earnings. New York: National Bureau of Economic Research. |
11 Feb - TUE 4:40pm - 6:15pm (tetyana) | Excercise session: Regression Diagnostics and Creating Random Data and Random Samples. Materials available here (updated scripts). |
7 Feb - FRI (Pytlíková) | 10:30-12:00 Migration III - labour market impact of immigration, immigration policy
Mandatory readings: 13.30-15.00 Diversity - Impacts of workforce diversity on firms and economies (effects on productivity, innovation, exporting and FDI behaviour, and enteprenuership) Handnotes Lec_LE_Impact_of_immigrationand_ethnic_diversity_2014.pdf |
5 Feb - WED 1:30pm - 3pm (Münich) | Human capital I Labor_notes_Human_capital_1.pdf (only pages 1-5, 7, 9 are important for the material covered at the lecture!) Ex-post readings: - George Psacharopoulos and Harry A. Patrinos: Returns to Investment in Education: A Further Update - The Production of Human Capital and the Life Cycle of Earnings: Variations on a Theme, Jacob Mincer, Journal of Labor Economics, Vol. 15, No. 1, Part 2: Essays in Honor of Yoram Ben-Porath (Jan., 1997), pp. S26-S47 (Jstor) - Weiss, Andrew (1995). Human Capital vs. Signalling Explanations of Wages. Journal of Economic Perspectives 9(4), 133-154.[ link] Ex-ante readings: - Borjas (5th edition; pp 236-273 on human capital) |
4 Feb - TUE 4:45 - 6:15pm (Tetyana) | Excercise session: Stata: Graphs and start Regression Diagnostics. Materials available here. |
3 Feb - MON (Pytlíková) | 10:30-12:00 Migration I - trends, determinants 13.30-15.00 Migration II - selectivity, braind drain/brain gain, integration& assimilation Handouts: Lec_LE_ International_Migration.pdf Readings: Immigration - trends, determinants, selectivity, integration.zip -George J. BORJAS: “THE ECONOMIC ANALYSIS OF IMMIGRATION”, In: Handbook of Labor Economics, Volume 3, Edited by O. Ashenfelter and D. Card (1999); Chapter 28, Elsevier Science B. V. -Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects—Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186.Optional readings: Optional_Immigration - trends, determinants, selectivity, integration.zip - Ronald G. Ehrenberg and Robert S. Smith: Modern Labour Economics: Theory and Policy, Chapter 10: Worker Mobility: Migration, Immigration, and Turnover. - Pedersen,J. P., Pytlikova, M. and N. Smith (2006): "Migration into OECD countries 1990-2000". In Parson and Smeeding (eds.): Immigration and the Transformation of Europe. Cambridge University Press. http://www.hha.dk/~MARP/OECD_MIGRATION_PARSONS_SMEEDING.PDF - F. Docquier, H. Rapoport (2012): Globalization, brain drain and development, Journal of Economic Literature, 50 (3), 681-730. |
31 Jan - FRI (Pytlíková) | 10:30-12:00: Compensating wage differentials 13.30-15.00 Discrimination Handouts: LE_Lec_Discrimination_handouts.pdf LE_Lec_CompWageDiff_handouts.pdf Readings:
- Borjas: Labour Economics; Chapter 5 on compensating wage differentials
- Daniel S.
Hamermesh,
1999. "Changing Inequality in Markets For Workplace Amenities," The
Quarterly Journal of Economics, MIT Press, vol. 114(4), pp.
1085-1123 - G. Duncan and B. Holmlund. (1983) "Was Adam Smith Right After All? Another Test of the Theory of Compensating Differentials" Journal of Labor Economics, vol. , pp. 366-79. 1 - M. Bertrand and S. Mullainathan. (2004) “Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment in Labor Market Discrimination,” AER 94 (Sept), pp. 991-1013. - J. Altonji and R. Blank. (1999) “Race and Gender in the Labor Market.” In O.Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3C, 3143-259. - M. Bertrand. (2010) “New Perspectives on Gender,” Handbook of Labor Economics, vol. 4B, 1543-90. - Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, vol. 50(4), pp. 959-1006 |
29 Jan - WED 1:30pm - 3pm (Münich) | Labor supply (Munich) - Static labor supply II (price lines and policies) Readings:
- Pages from Labor_notes_static_labor_supply_1_2.pdf Optional readings - Quick search for follow-ups of the paper by Blau & Kahn in the WoS here. - a metaanalysis: The wage elasticity of labour supply: A synthesis of empirical estimates, by: Evers, M et. al. in ECONOMIST-NETHERLANDS, Volume: 156, Issue: 1, Pages: 25-43, DOI: 10.1007/s10645-007-9080-z - Long - Run Trends in Labor Supply by B.Motley - page 27 in Ngai and Pissarides Trends in Labour Supply and Economic Growth - slides 12-16 from the IDEA study comparimng US, FR, UK and CZ (last 20 years) Links of interest: Subscribe for regular surveys of most recent research econ papers on the area of your interest (labor markets, education economics, unemployment & innequality, etc.) |
28 Jan - TUE4.30 - 6pm | Excercise session #2 with Tetyana on Stata use (Summary statistics,tables and Missing values patterns). A session on the use of Web of Science to support your critical literature review search will be scheduled. Materials available here. And from the 1st session here. |
27 Jan - MON | no lecture |
24 Jan - FRI | no lecture |
22 Jan - WED (Münich) exceptional time 8:30am | Labor supply - Introduction Link to EALE conferences programs, Labor market indicators 1 | 2 | 3 | 4; Mirrless Review; Time-use statistics Labor supply (Munich) - Static labor supply I Readings: Borjas (5th edition; pp 21-45); get familiar with HBLE I, Chapter 1, pp. 3-31 (multiple book volumes are available for the course in the library) |
17 Jan - FRI | Make-ups week - no lecture. Lecture will be made up later during the semester. |
13 Jan - MON | Make-ups week - no lecture. Lecture will be made up later during the semester. NO EXCERCISE SESSIONS THIS WEEK!!!!!!!!!!!!!!! |
10 Jan - Fri 10:30 - 12:00 | (Pytlíková) Introduction on labor market differentials Handouts LE_Lec_Intro_to_labour_market_differentials.pdf Readings |
6 Jan - Mon | (Münich) Course outline, labor economics framework |