Labor Economics II- Spring 2016, Course outline  |  Mariola Pytliková (MP) & Daniel Münich (DM). TA: Liyousew Borga
Office hours: upon request
Typically, our lectures are scheduled on Mondays from 15:00-16.30 and on Tuesdays from 9.00-10.30
But please check the course's website for exceptions!

 
Sunday 10.4.2016

DEADLINE for FINAL ASSIGNMENTS submission.
Thursday 31.3.2016
10.30-12.00
Room 7
WRITTEN EXAM
Questions about exam content will be answered at the beggining of  morning lecture  on Tuesday 22.3.
Sample exam

Tuesday 22 March
10.30-12.00
 (Pytliková)		ALMP; Retirement and Aging

Hand notes: ALMP and Retirement policies.

Readings:
Cahuc, Carcillo and Zylberberg, Labor Economics, Chapter 14, Active labor market policies.
Tito Boeri and Jan Van Ours (2008): Economics of Imperfect Labor Markets. Princeton University Press. Chapter 6: Retirement Programs, pp. 121-137.

Monday 21 March
15-16.30
 (Pytliková)		Effects of international trade and FDI, Production sharing, Cont.

Hand notes: Effects of Trade and Globalization

Compulsory Readings:
Cahuc, Carcillo and Zylberberg, Labor Economics, Chapter 11, Globalization, employment and inequality
Ehrenberg and Smith: Modern Labor Economics, Chapter 16, the Labor Market Effects of International Trade and Production Sharing

Other Relevant Readings: 
Dutt P., Mitra, D. and P. Ranjan (2009): "International trade and unemployment: Theory and cross-national evidence" Journal of International Economics, 2009, vol. 78, is.1, pp 32-44.
Felbermayr,G. Prat, J.and HJ Schmerer (2011): "Trade and unemployment: What do the data say" European Economic Review 55 (6), pp. 741-758.
Hummels, D., Munch J.R. and Ch. Xiang (2016): Offshoring and Labor Markets. IZA DP No 9741.
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.


Tuesday 15 March 12.00-13.30
(Pytliková,Münich)		MINI CONFERENCE, Part II.
Tuesday 15 March 8.30.00-10.30
(Pytliková,Münich)
MINI CONFERENCE, Part I. Please find info about the final programme HERE
Monday 14 March
16.30		Research seminar by  Prof. Maia Güell on "Unemployment Duration Variance Decomposition à la ABS: Evidence from Spain”
Monday 14 March,
9.30-12.45 (13.45-15 for interested).
Urban economics conference titled “Economics of Livable Cities”, CERGE-EI.
It would be great if you could make it at least for the first session 10-12.45 (9.30-10 welcome and opeing remarks) with Gulia Faggio, Jens SUedekum and Stephan Heblich, the papers are related to Labor Econ.

Suggested readings:

A) Papers that will be presented during the conference:

1) https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=RESConf2016&paper_id=580
2) Jens_paper

3) http://ac.els-cdn.com/S0094119014000746/1-s2.0-S0094119014000746-main.pdf?_tid=3058322a-dcc5-11e5-b0d6-00000aab0f01&acdnat=1456517698_e654a7967a7284c8fbb9e854f6a84e13and http://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0152.pdf
4) http://crei.cat/people/ponzetto/Ponzetto_Urban_networks.pdf
5) http://afse2015.sciencesconf.org/61655/document
6) Laurent_paper

B) some complementary literature in the field. 
http://real.wharton.upenn.edu/~duranton/handbook.html

Monday 14 March 15-16.30
(Pytliková)
Effects of international trade and FDI, Production sharing

Hand notes: Effects of Trade and Globalization

Compulsory Readings:
Cahuc, Carcillo and Zylberberg, Labor Economics, Chapter 11, Globalization, employment and inequality
Ehrenberg and Smith: Modern Labor Economics, Chapter 16, the Labor Market Effects of International Trade and Production Sharing

Other Relevant Readings: 
Dutt P., Mitra, D. and P. Ranjan (2009): "International trade and unemployment: Theory and cross-national evidence" Journal of International Economics, 2009, vol. 78, is.1, pp 32-44.
Felbermayr,G. Prat, J.and HJ Schmerer (2011): "Trade and unemployment: What do the data say" European Economic Review 55 (6), pp. 741-758.
Hummels, D., Munch J.R. and Ch. Xiang (2016): Offshoring and Labor Markets. IZA DP No 9741.
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.

Sunday 13. March, 16.00DEADLINE FOR DRAFT ASSIGNMENTS TO BE PRESENTED AT THE MINI-CONFERENCE (by email to mariola.pytlikova@cerge-ei.cz)
INFO
INFO about assignments and the mini conference - incl. preliminary programme of the mini-conference/version 2.

Wednesday
9 March 9-10.30
(Liyou Borga)		Exercise session on Duration Analysis

Please find the data and script files HERE in the zipped folder.

Please find the SLIDES HERE.
Tuesday 8 March 9.00-10.30
(Daniel Münich)		Analysis of teachers' incentives to raise the quality of instruction

Advance readings: EENEE Analytical Report
http://www.eenee.de/dms/EENEE/Analytical_Reports/EENEE_AR26.pdf

Readings:

Analysis of incentives to raise the quality of instruction

Economics everywhere:

Inequality 0 |  1  |  2

Mechanisms and methods for cost-benefit / cost-effectiveness analysis of specific education programmes

Teacher's pay IDEA


Monday 7 March 15-16.30
(Daniel Münich)		Topics in Economics of Education

Advance readings: EEAG (2016), The EEAG Report on the European Economy, “Tuning Secondary Education” CESifo, Munich 2016

Mandatory readings:

EEAG chapter 3

Chapter 2 in the Handbook of the Economics of Education by Hanushek and Woessmann, Vol 2

Economics everywhere: 

The best—and worst—places to be a working woman

Tuesday 1 March 9.00-10.30
(Pytliková)		Pay & productivity-wage determination within the firm, incentive pay, efficiency wages
Hand notes: Pay and productivity
PPT Slides on  Foreign Ownership Premia in Emerging Economies_Evidence from Czech Republic

Compulsory Readings:
Borjas 6e, Chapter 11 Incentive Pay;
Lazear E. (2000): "Performance Pay and Productivity", American Economic Review, Vol 90.

Other Relevant Literature (optional):
Card, D., Mas, A, Moretti, E. and E. Saez (2012): "Inequality at Work: The Effect of Peer Salaries on Job Satisfaction" American Economic Review, 102(6), pp. 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 Premia in Emerging Economies: Evidence from Czech Republic", Economics of Transition, Vol 19(2), pp.371-395.
Monday 29 February
16.30
Applied Micro Research Seminar
Seminar by Prof. Hessel Oosterbeek on "The Performance of School Assignment Mechanisms in Practice"
(I encourage you to attend the seminar, which is very relavant for our course).
Monday 29 February 15-16.30
(Pytliková)		Family and work; family policies
Hand notes: Family and work.

Compulsory Readings:
Borjas 6e, Chapter 2 labor supply;
Ludsteck, Johannes; Schönberg, Uta (2014): Expansions in maternity leave coverage and mothers' labor market outcomes after childbirth. In: Journal of Labor Economics, Vol. 32, No. 3, S. 469-505.

Other Relevant Literature (optional):
Ehrenberg and Smith, Modern Labor Economics, chapter 6.
Boeri and van Ours: Imperfect Labor Markets, Chapters 5, 6 and 7.
Dustmann, C. and U. Schoenberg (2011): "Expansions in maternity leave and Children's Long-Term Outcomes" American Economic Journal: Applied Economics 4(3), pp. 190-224.
Goldin C. (2014): A Grand Gender Convergence: Its Last Chapter. American Economic Review. 104(4):1091-1119.
Wednesday 24. February, 11.00amSeminar Perspectives on the European Economy presenting a report by EEAG and CESifo.

The report focuses on four issues:
    * Equity between generations;
    * European policy guidelines for education;
    * Denmark – assessing its flexicurity, size of government in the economy, relationship to the EU;
    * Western Balkans – analysis of conditions for, and effects of, potential EU membership.

Chair:
    * Daniel Münich (IDEA think-tank at CERGE-EI)

Speakers:

    * John Driffill (Chair of EEAG at CESifo)
    * Jan-Egbert Sturm (KOF Swiss Economic Institute, ETH Zurich)  
    * Kamil Galuščák (Czech National Bank)

Tuesday 23 February 9.00-10.30
(Pytliková)		Emigration and source countries; Brain drain and brain gain; Remittances.

Hand notes: Emigration and source countries.

Compulsory Readings:
  • Docquier, F. and Rapoport, H (2012) "Globalization, brain drain, and development" Journal of Economic Literature 50 (3), pp. 681-730.
  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part IV Other Effects of Immigration. Ch. Effects on Source Countries.
Other Relevant Literature (optional):
  • Dustmann, Ch, Frattini, T. and A. Rosso (2015) "The Effect of Emigration from Poland on Polish Wages". Scadinavian Journal of Economics Vol 117 (2), pp. 522-564.
  • Gibson, J. McKenzie, D (2011) "Eight questions about brain drain". Journal of Economic Perspectives 25(3), pp. 107-128.
  • Yang, D (2011): "Migrant remittances" Journal of Economic Perspectives 25(3), pp. 129-152.
Monday 22 February 15-16.30
(Pytliková)		Wider effects of immigration; International migration and globalization. Cont.

Hand notes: Wider Effects of Immigration, Cont.

Compulsory Readings:
  • 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.
  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part IV Other Effects of Immigration.

Other Relevant Literature (optional)

  • Nathan, M. (2014): The wider economic impacts of high-skilled migrants: a survey of literature for receivivng countries. IZA Journal of Migration 2014, 3:4. 
  • Card (2010): Immigration and Inequality. American Economic Review. 
  • Javorcik, B. S., Ç. Özden, et al. (2011). "Migrant networks and foreign direct investment." Journal of Development Economics 94(2): 231-241.
  • Hunt, J. and M. Gauthier-Loiselle (2010). "How Much Does Immigration Boost Innovation?" American Economic Journal: Macroeconomics 2(2): 31-56.
  •  Kerr, S. P. and W. Kerr (2011). "Economic Impacts of Immigration: A Survey" NBER Working Paper 16736. Cambridge, MA, NBER
  •  Kerr, W R and W F Lincoln (2010), “The supply side of innovation: H-1B visa reforms and US ethnic invention”, Journal of Labor Economics, 28: 473–508.
  •  Peri, G and C Sparber (2009), “Task Specialization, Immigration, and Wages”, American Economic Journal: Applied Economics, 1(3): 135–169.
  •  Peri, Giovanni, Kevin Shih, and Chad Sparber (2014), “Foreign STEM Workers and Native Wages and Employment in U.S. Cities“, NBER Working Papers 20093. 
  •  Borjas, G. and K. Doran (2012): "The Collapse of the Soviet Union and the Productivity of American Mathematicians," QJE 2012
  • *Parrotta, P., Pozzoli, D. and M Pytlikova (2014): Does Labour Diversity affect Firm Productivity? European Economic Review, Vol. 66, February 2014, Pages 144–179.

Wednesday
17 February 9-10.30
(Liyou Borga)

Exercise session on Evaluation problems, Causal inference and Identification Strategies

Handouts to be downloaded HERE.

Tuesday 16 February 9.00-10.30
(Pytliková)

Wider effects of immigration; International migration and globalization.

Hand notes: Wider effects of immigration.

Compulsory Readings:

Other Relevant Literature (optional):

  • Nathan, M. (2014): The wider economic impacts of high-skilled migrants: a survey of literature for receivivng countries. IZA Journal of Migration 2014, 3:4. 
  • Card (2010): Immigration and Inequality. American Economic Review. 
  • Javorcik, B. S., Ç. Özden, et al. (2011). "Migrant networks and foreign direct investment." Journal of Development Economics 94(2): 231-241.
  • Hunt, J. and M. Gauthier-Loiselle (2010). "How Much Does Immigration Boost Innovation?" American Economic Journal: Macroeconomics 2(2): 31-56.
  •  Kerr, S. P. and W. Kerr (2011). "Economic Impacts of Immigration: A Survey" NBER Working Paper 16736. Cambridge, MA, NBER
  •  Kerr, W R and W F Lincoln (2010), “The supply side of innovation: H-1B visa reforms and US ethnic invention”, Journal of Labor Economics, 28: 473–508.
  •  Peri, G and C Sparber (2009), “Task Specialization, Immigration, and Wages”, American Economic Journal: Applied Economics, 1(3): 135–169.
  •  Peri, Giovanni, Kevin Shih, and Chad Sparber (2014), “Foreign STEM Workers and Native Wages and Employment in U.S. Cities“, NBER Working Papers 20093. 
  •  Borjas, G. and K. Doran (2012): "The Collapse of the Soviet Union and the Productivity of American Mathematicians," QJE 2012
  • *Parrotta, P., Pozzoli, D. and M Pytlikova (2014): Does Labour Diversity affect Firm Productivity? European Economic Review, Vol. 66, February 2014, Pages 144–179.
  • *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.

Monday 15 February 15-16.30
(Pytliková)

The second generation. Impacts of immigration on destinations.

Hand notes: The second generation_Impact of immigration.

Compulsory Readings:

Other Relevant Literature (optional):

  • CARD, D. (1990): „The Impact of the Mariel Boatlift on the Miami Labor Market“ Industrial and Labor Relation Review, Vol. 43, No. 2., pp. 245-257.
  • BORJAS George J.(2006): Native internal migration and the labor market impact of immigration. JHR, 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.
  • Borjas, G. and K. Doran (2012): "The Collapse of the Soviet Union and the Productivity of American Mathematicians," Quarterly Journal of Economics, August 2012.
  • 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.
  • 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.
  • PERI, G. (2014): Do immigrant workers depress the wages of native workers?" IZA World of Labor 42.
  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part III Labor Market Effects of Immigration.

Wednesday
10 February

DEADLINE FOR GROUP FORMATION AND TOPIC OF YOUR ASSIGNMENT (by email to mariola.pytlikova@cerge-ei.cz)

Monday 8 February, 15:00-16.30
(Pytliková)		Immigrant performance, assimilation and integration.

Hand notes: Assimilation of immigrants.

Compulsory Readings:
Other Relevant Literature:
Wednesday
3 February 9-10.30
(Liyou Borga)
Exercise session on Panel Data.

Please download the zip folder with data and do-files neccessary for the exercise session.
Handouts to be downloaded HERE.

INFO INFO about ASSIGNMENTS

Dear Students, you may find some first information on the assignment HERE in the pdf file.

Recommended data sources:

1.       PIACC data (micro data) – International code-book of variables
and International Master questionnaire
all linked from here
http://www.oecd.org/site/piaac/publicdataandanalysis.htm

2.       International migration dataset by Pytlikova (2011), used in Adsera and Pytlikova, EJ 2015 (macro data)

3.   IAB Brain Drain Data (macro)

3.       World Bank WDI (macro data) and/or OECD Source Stats (macro data)

4.       EBRD Life in Transition Survey (micro data) 



Tuesday 2 February, 8:30-10am
(Pytliková)		Economics of Migration - Who moves? Selectivity in Migration

Hand notes: Selectivity in Migration

Compulsory Readings:
  • Borjas (1987): "Self-selection and the earnings of immigrants" American Economic Review, 77(4), pp. 531-553.
  • Chiswick (1999): Are Immigrants Favourably Self-selected? American Economic Review, pp.181-185.http://www.jstor.org/stable/117103.
Other Relevant Literature:
  • Chapter 4: "Who Immigrates? Theory and Evidence" In Bodvarsson, Ö. and H. van den Berg (2013): The Economics of Immigration – Theory and Policy
  • Grogger and Hanson (2011): "Income maximization and the selection and sorting of international migrants" Journal of Development Economics, 95 (1), 42-57.
  • McKenzie and Rapoport (2010): "Self-selection patterns in Mexico-U.S. migration: The role of migration networks". Review of Economics and Statistics 92 (4), pp. 811-821.
Monday 1 February, 15:00-16.30
(Pytliková)		Economics of Migration - Determinants of Migration II

Hand notes: Determinants of Migration II

 Compulsory Readings:
  • Bodvarsson, Simpson and Sparber: "Migration Theory" in Chiswick and Miller ed. (2015): Handbook of International Migration, Vol, 1A
Other Relevant Literature:
  • Gorinas, Cedric and Mariola Pytliková (2016): “Do Natives’ Attitudes Influence International Migration?” Forthcoming in the International Migration Review.
  • Palmer, John and Mariola Pytliková (2015): “Labor Market Laws and intra-European Migration: The Role of the State in Shaping Destination Choices”. European Journal of Population, Vol. 31, Issue 2, March 2015, pp. 127-153
  • Mayda, A. M.(2010): "International Migration: A panel data analysis of the determinants of bilateral flows". Journal of Population Economics, 23(4), 1249-1274.
  • Karemera, Oguledo, Davis, (2000): "A gravity model analysis of international migration to North America" Applied Economics,  32(13), 1745-1755.
  • F. Docquier, G. Peri, I. Ruyssen, (2014): "The cross-country determinants of potential and actual migration",  International Migration Review (2014), 48 (S1): 37-99 http://perso.uclouvain.be/frederic.docquier/filePDF/DPR_IMR2014.pdf
Tuesday 26 January, 8:30-10am
(Daniel Münich)		Duration models, continued

Handnotes: 10_Hand_notes_Duration_models.pdf

Readings:
Pages 646-661 in:
Nicholas M. Kiefer, Economic Duration Data and Hazard Functions
Journal of Economic Literature, Vol. 26, No. 2 (Jun., 1988), pp. 646-679
http://www.jstor.org/stable/pdf/2726365

Optional readings:
Labor_Econ_Everywhere_10.pdf
Labor_Econ_Everywhere_09.pdf

Recommended reading:
 Borjas (5th edition) Chapter 8 on Labor Moibility, pp. 349-356 on job search and turnover.
 Borjas (5th edition)  Chapter 12 on Unemployment, pp. 504-518 on search and equilibrium unemployment.

Optional reading on the matching function literature:
Looking into the Black Box: A Survey of the Matching Function, Petrongolo, Barbara, and Christopher A. Pissarides. 2001. "Looking into the Black Box: A Survey of the Matching Function." Journal of Economic Literature, 39(2): 390-431.
Monday 25 January, 15:00-16.30
(Daniel Münich)		 Duration models

Handnotes: 10_Hand_notes_Duration_models.pdf
Readings:
Pages 646-661 in:
Nicholas M. Kiefer, Economic Duration Data and Hazard Functions
Journal of Economic Literature, Vol. 26, No. 2 (Jun., 1988), pp. 646-679
http://www.jstor.org/stable/pdf/2726365

Optional readings:
Labor_Econ_Everywhere_10.pdf
Labor_Econ_Everywhere_09.pdf

Recommended reading:
 Borjas (5th edition) Chapter 8 on Labor Moibility, pp. 349-356 on job search and turnover.
 Borjas (5th edition)  Chapter 12 on Unemployment, pp. 504-518 on search and equilibrium unemployment.

Optional reading on the matching function literature:
Looking into the Black Box: A Survey of the Matching Function, Petrongolo, Barbara, and Christopher A. Pissarides. 2001. "Looking into the Black Box: A Survey of the Matching Function." Journal of Economic Literature, 39(2): 390-431.

19 January, 8:30-10am
(Pytliková)
LECTURE CANCELLED DUE TO SICKNESS. TO BE RESCHEDULED!		LECTURE CANCELLED. TO BE RESCHEDULED
Economics of Migration - Who moves? Selectivity in Migration

18 January, 15:00-16.30
(Pytliková)
LECTURE CANCELLED DUE TO SICKNESS. TO BE RESCHEDULED!		LECTURE CANCELLED. TO BE RESCHEDULED
Economics of Migration - Determinants of Migration II



12 January, 8:30-10am
(Pytliková) 		Economics of Migration - Determinants of Migration I
 
Hand notes: Handouts Determinants of migration I
 
Compulsory Readings:
 Other Relevant Literature:
11 January, 15:00-16.30
(Pytliková) 		Introduction to the course; Economics of migration, introduction, trends and concepts

Hand notes: Introduction

Optional Readings:
Ferrie and Hatton: "Two Centuries of Migration" In Chiswick and Miller ed. (2015): Handbook of International Migration, Vol, 1A
List in OECD International Migration Outlook for 2015 or 2014

Literature for the course: