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
ASSIGNMENTDownloand 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)
  • Thomas MaCurdy: An Empirical Model of Labor Supply in a Life-Cycle Setting,  Journal of Political Economy, Vol. 89, No. 6 (Dec., 1981), mainly pages 1059-1074  (Jstor)


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:

Ehrenberg and Smith: Modern Labour Markets: Chapter 11: Pay and Productivity: Wage determination within firm

Chevalier J. and Ellison G. (1999), “Career Concerns of Mutual Funds Managers”, the Quarterly Journal of Economics, Vol 114

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.

Card, David, Alexandre Mas, Enrico Moretti, and Emmanuel Saez (2012): “ Inequality at Work: The Effect of Peer Salaries on Job Satisfaction” American Economic Review, 102(6): 2981–3003

Brown, J. (2011): “Quitters Never Win: The (Adverse) Incentive Effects of Competing with Superstars”, Journal of Political Economy 119(5).

Eriksson, T. and M. Pytlikova (2011): “Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic”, Economics of Transition, Vol. 19 (2), pp. 371-395.

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:
  • Borjas (5th edition; pp 407-412 on household production function;
  • Get familiar with HBLE I, Chapter 4, pp. 273-302;
Optional: Four_research_topics.pdf (from newspapers we have discussed)
4 March - TUE
4:45-6:15pm
(Tetyana)
Introduction to Programming in Stata (not .DO files but scripting own commands)
3 Mar - MONno lectures
26 Feb - WED
1:30pm - 3pm
(Münich)
Labor supply III - taxation of labor
Handnotes:
Taxation_of Labor

25 Feb - TUE
4:45-6:15pm
(Tetyana)
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 Demand, Chapter 3;
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:

Eriksson, T., Pytlikova, M. and F. Warzynski (2013): "Increased Sorting and Wage Inequality in the Czech Republic: New Evidence Using Linked Employer-Employee Dataset." Economics of Transition, Vol. 21, Issue 2, pp. 357-380. DOI: 10.1111/ecot.12014.
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:
*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.

*Borjas, G. and K. Doran (2012): "The Collapse of the Soviet Union and the Productivity of American Mathematicians," Quarterly Journal of Economics, August 2012. http://qje.oxfordjournals.org/content/127/3/1143.full.pdf?keytype=ref&ijkey=H8yAbesHD1a9rWA

*Parrotta, P., Pozzoli, D. and M Pytlikova (2014): Does Labour Diversity affect Firm Productivity? European Economic Review, Vol. 66, February 2014, Pages 144–179 http://www.sciencedirect.com/science/article/pii/S0014292113001670

*Parrotta, P., Pozzoli, D. and M. Pytlikova (2014): "The Nexus between Labor Diversity and Firm's Innovation." Journal of Population Economics. Vol. 27, Issue 2, April 2014, pp 303-364. http://rd.springer.com/article/10.1007/s00148-013-0491-7

Optional readings
BORJAS George J.(2006): Native internal migration and the labor market impact of immigration. Journal of Human Resources, 41:2, 221-258

Borjas G. J. (2003): The labor demand curve is downward sloping: re-examining the impact of immigration on the labor market_, Quarterly Journal of Economics, vol. 118, pp. 1135–74.

Card, D. E. (2001). Immigrant inflows, native outflows and the local labor market impacts of higher immigration, Journal of Labor Economics, vol. 19, pp. 22–64.

Card, D. (2005): Is the new immigration really so bad? The Economic Journal, 115:507, 300-323.

Alesina, A. and E. La Ferrara (2005): “Ethnic Diversity and Economic Performance” Journal of Economic Literature, XLII, pp 762-800. http://www.jstor.org/discover/10.2307/4129475?uid=3737856&uid=2129&uid=2&uid=70&uid=4&sid=21103461090853

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.


- 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:
  • 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
  • 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
Ex-post handnotes:
- 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 - TUE
4.30 - 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
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.” In O. Ashenfelter and D. Card, eds.,Handbook of Labor Economics, vol. 4B, 1543-90.

Basic info about the course
  6 Jan  - Mon(Münich)
Course outline, labor economics framework