LABOR ECONOMICS II- Spring 2019, Course outline
TEACHERS:  Mariola Pytliková (MP) & Daniel Münich (DM). TA: Ekaterina Travova
Office hours: Mariola: Wednesdays 13.30-15.00 or upon request (please write me an email!)

TIME: Typically, our lectures are scheduled on Tuesdays and Thursdays from 11:30-13.00. The exercise sessions on Fridays
PLACE: Lecture room no 3. For Exercise sessions we will use Computer Lab.
But please check the course's website for exceptions!
 
Tuesday 8 January, 2019 11:30am-13.00
(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 the most recent OECD International Migration Outlook 2018, or in previous versions of the Outlook.

Literature for the course:

!!CANCELLED!!
Thursday 10 January, 2019
11:30am-13.00
(Pytliková)
!!CANCELLED!!
!!! LECTURE CANCELLED !!!
Tuesday,
15 January,
11:30am-13.00
(Pytliková)
Economics of Migration - Determinants of Migration I
 

Hand notes: Determinants of Migration I Handouts
 

Compulsory Readings:
Other Relevant Literature:
INFOINFO about ASSIGNMENTS
Dear Students, you may find some first information on the assignment HERE in the pdf file.

Recommended data sources:

1.       PIAAC 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)  

4.  OECD DIOC-E Database on Immigrants  (info on 100 destination countries and more than 200 countries of origin), information on demographic characteristics (age and gender), duration of stay, labour market outcomes (labour market status, occupations, sectors of activity), fields of study, educational attainment and the place of birth in OECD and non-OECD Countries

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

             6. EBRD Life in Transition Survey (micro data, years 2006, 2010, 2016)
      7. European Value Survey-World Value Survey (EVS-WWS), years 1981-2017 (micro)  

Thursday,
17 January,
11:30am-13.00
(Pytliková)
Economics of Migration - Determinants of Migration II
Hand notes: Determinants of Migration II Handouts

Compulsory Readings:
  • Bodvarsson, Simpson and Sparber: "Migration Theory" in Chiswick and Miller ed. (2015): Handbook of International Migration, Vol, 1A
Other Relevant Literature:
LECTURE MOVED DUE TO SICKNESS!
Tuesday,
22 January,
11.30-13.00
(Pytliková)
Room 3
Lectured cancelled/replacement in the midterm week
Wednesday 23 January, 15.45-17.15
(Ekaterina Travova)
PC LAB
Exercise session on; Panel data methods; MATERIALS can be downloaded from HERE
Place:
PC LAB
Thursday 24 January,  11:30am-13.00
(Pytliková)
Economics of Migration - Who moves? Selectivity in Migration

Hand notes: Selection in Migration Handouts

Compulsory Readings:
Other Relevant Literature:
Tuesday,
29 January, 11:30am-13.00
(Pytliková)
Economics of Migration - Who moves? Selectivity in Migration, CONT
Thursday,
31 January, 11:30am-13.00
Immigrant performance, assimilation and integration. The second generation. 

Hand notes: Immigrant performance patterns_handouts

Compulsory Readings:
  • Sweetman, A. and van Ours, J.C.(2014): "Immigration: What about the children and grandchildren?" In Chiswick, B.R. ad Miller, P.W. (eds) Handbook of the Economics of International Migration" Amsterdam.
  • Part II on "Immigrant Selection and Assimilation" In Bansak, Simpson and Zavodny (2015): "The Economics of Immigration"., Chapters 5 and 6.
Other Relevant Literature:
Friday, 1 February 2019, 11 am!! Deadline for a group formation and choice of topic of the student assignment!!!
Tuesday, 5 February, 11.30am-13.00
(Pytliková)
CANCELLED DUE TO SICKNESS - to be replaced on the midterm week
Wednesday 6 February, 15.45-17.15
(Ekaterina Travova)
PC LAB
Exercise session on: EVALUATION METHODS - Diff- in -Diff; IV; Matching; RDD;
MATERIALS: TBA
Place:
PC LAB
Thursday,
7 February, 11:30am-13.00
(Pytliková)
Impacts of immigration on destinations - Employment and Wages

Hand notes: Impact of immigration on destinations Handouts

Compulsory Readings:

Other Relevant Literature (optional):

  • 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
Tuesday, 12 February, 11.30am-13.00
(Pytliková)
A make-up lecture for 22.1.
Wider effects of immigration; Ethnic diversity; International migration and globalization.

Hand notes: Wider effects of immigration I
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. 
  • 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
Thursday, 14 February, 11.30am-13.00
(Pytliková)
 
A make-up lecture for 5.2.

Wider effects of immigration; Cont
Hand notes:
Wider Effects of Immigration II
;
WIDER Effects of Immigration III_Income and Inequality

Compulsory Readings:

  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part IV Other Effects of Immigration
  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part III Labor Market Effects of immigration, Chapter 7, Labor Market Effects of Immigration - Theory
Other Relevant Literature (optional):
Tuesday,
19 February, 11.30-13.00
(Pytliková)
Wider effects of immigration,  Cont. - Research frontiers
Hand notes: Wider effects of immigration IV Research frontiers

Compulsory Readings:

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. Chapter 11,. 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.
Wednesday 20 February, 15.45-17.15
(Ekaterina Travova)
PC LAB
Exercise session on: EVALUATION METHODS - Diff- in -Diff; IV; Matching; RDD;
MATERIALS: to be downloaded from HERE
Place:
PC LAB
Thursday,
21 February, 11:30am-13.00
(Pytliková)
Immigration Policy - some final thoughts on the Economics of Migration
Hand notes: Immigration Policy

Compulsory Readings:
  • Bansak, Simpson and Zavodny: The Economics of Immigration, Part VI: Chapters 13 and 14.
Other Relevant Literature (optional):
Borjas 6e, Chapter 8 labor mobility; and Chapter 4 (policy application 4-5).
Tuesday,
26 February, 11:30am-13.00
(Daniel Münich)
COMPENSATING WAGE DIFFERENTIALS

Economics everywhere: 16_Economics_everywhere_Schools_for_small_families.pdf

Motivation:  Fatal accidents 2014 and 2015 | Fatal and non-fatal injuries by NACE | Death due to accidents by age | Perception of work stress, excessive workload and job insecurity | Visualisation

Handout: 18_Equalizing_wage_differentials

Mandatory readings:
  • Chapter 5: Compensating Wage Differential in George Borjas, Labour  Economics, 7th edition: Chapter 8, pp. 196-222.
  • Handbook of Labor Economics, Volume 1, Chapter 12: by S.Rosen on: Theory of Equilising Differences. Link.
Recommended Readings:

Thursday,
28 February, 11:30am-13.00
(Daniel Münich)
COMPENSATING WAGE DIFFERENTIALS, Cont., Statistical Value of Life

Economics everywhere: 17_Economics_everywhere_Welfare_in_Africa_Language.pdf

Handouts:

  • Key facts (on yellow background) from Bentham A, What is the optimal Speed limit on Higways, JPE 2015.
  • Key facts (on yellow background)  and tables from Brown, C. (1980). Equalizing Differences in the Labor Market. The Quarterly Journal of Economics,94(1), 113-134.
  • Key facts from Kluve and Shaffner, The Value of Life in Europe— A Meta-Analysis, 2008.
Optional Readings:
  • W. Kip Viscusi, The Value of Risks to Life and Health, Journal of Economic Literature, Vol. 31, No. 4 (Dec., 1993), pp. 1912-1946. (link).
Tuesday,
5 March, 11:30am-13.00
(Pytliková)
Pay & productivity-wage determination within the firm, incentive pay; HRM practices and productivity

Hand notes:
Performance Pay, HRM practices and productivity_handouts
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

 Lazear, E and K. Shaw (2007),: “Personnel Economics: The Economist’s View of Human Resources”, Journal of Economic Perspectives 5, pp.45-66

Bloom, N., Van Reenen, J., 2011. “Human resource management and productivity”. In: Ashenfelter, O., Card, D. (Eds.), Handbook of Labor Economics, vol. 4b., pp. 1697–1767

Oyer, P. and S. Schaefer (2011): “Personnel Economics: Hiring and Incentives”. In: Ashenfelter, O., Card, D. (Eds.) Handbook of Labor Economics, vol. 4b. Elsevier, 1769-1823

Breza, Emily, Supreet Kaur and Yogita Shamdasani. “The Morale Effects of Pay Inequality” Quarterly Journal of Economics, Volume 133, Issue 2, 1 May 2018, Pages 611–663

Anat Bracha, Uri Gneezy, and George Loewenstein. Relative Pay and Labor Supply. Journal of Labor Economics, April 2015, Vol. 33, No. 2: 297-315.

Hamilton, B., J. Nickerson, and H. Owan, “Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation”. Journal of Political Economy 111(3),June 2003: 465-497.

Babcock, Philip, Kelly Bedard, Gary Charness, John Hartman, and Heather Royer. “Letting Down the Team? Evidence of Social Effects of Teams” Journal of the European Economic Association, 2015: 841-870.

Ariely, Dan; Kamenica, Emir; Prelec, Drazen. “Man's Search for Meaning: The Case of Legos” Journal of Economic Behavior and Organization, vol. 67, no. 3-4, September 2008, pp. 671-77

Kremer, Michael, Supreet Kaur, and Sendhil Mullainathan. 2015. “Self Control at Work.” Journal of Political Economy 123 (6): 1227 – 1277

Kuhn, Peter and Marie Claire Villeval. "Are Women More Attracted to Team Incentives than Men?", Economic Journal, February 2015

Griffith, Rachel; Neely, Andrew. “Performance Pay and Managerial Experience in Multitask Teams: Evidence from within a Firm” Journal of Labor Economics, vol. 27, no. 1, January 2009, pp. 49-82.
 

INFO
FURTHER INFO ABOUT ASSIGNMENTS AND THE MINI-CONFERENCE: SEE THE PDF HERE

Wednesday, 6 March, 15.45-17.15
(Ekaterina Travova)
PC LAB
Exercise session on: matching CONT, and survival analyses 
MATERIALS: HERE
Place:
PC LAB
Thursday,
7 March, 11:30am-13.00
(Pytliková)

Pay, HRM & productivity CONT.

Tuesday,
12 March, 11:30am-13.00
(Pytliková)
Labor Market Effects of International Trade and Globalization

Hand notes: Trade and Labor handouts

Compulsory Readings:
Cahuc, Carcillo and Zylberberg, Labor Economics, Chapter 11, Globalization, employment and inequality

Other Relevant Readings: 
Ehrenberg and Smith: Modern Labor Economics, Chapter 16, the Labor Market Effects of International Trade and Production Sharing
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

Thursday,
14 March, 11:30am-13.00
(Daniel Münich)

Economics everywhere: 

Handouts:

Readings:
  • Chapter 12: Incentive pay  in George Borjas, Labour  Economics, 7th edition. Pages. 480 - 489.
  • L.F. Katz: Efficiency wage theories: a partial evaluation, pages 235 - 251. (link).
  • Schlicht, Efficiency wages: Variants and implications (link)
Optional Readings:
  • J.Stiglitz, The Causes and Consequences of The Dependence of Quality on Price, JEL 1986 (link)
  • A curiosity type-writter version of thechapter by L.F. Katz: Efficiency wage theories: a partial evaluation (link).
Tuesday,
19 March, 2019
NOON (SHARP!!)

DEADLINE FOR SENDING DRAFT ASSIGNMENTS
You should submit an electronic copy of your draft assignment to Mariola.pytlikova@cerge-ei.cz
NOTE THERE IS NO LECTURE so that you have the time to prepare your presentation and discussant's comments
Thursday,
21 March, 2019
11.20-14.00
ROOM 3

MINI CONFERENCE, final programme to be found HERE

Tuesday,
26 March, 11:30am-13.00
MINI CONFERENCE CONT

If time - shortly about Retirement and Aging
Handouts: Retirement and Aging

Readings:
Tito Boeri and Jan Van Ours: Economics of Imperfect Labor Markets. Princeton University Press. Chapter 6: Retirement Programs.

Optional:
Bratberg, Holmås and Thøgerson (2004): “ Assessing the effects of an early retirement program” Journal of Population Economics 17, pp. 387-408
Raj Chetty, John N. Friedman, Søren Leth-Petersen, Torben Heien Nielsen and Tore Olsen (2014): “Active vs. Passive Decisions and Crowd-Out in Retirement Savings Accounts: Evidence from Denmark” The Quarterly Journal of Economics, Volume 129, Issue 3, August 2014, Pages 1141–1219,
https://doi.org/10.1093/qje/qju013

Tuesday 2.4.2019
11.30

ROOM 320 (3rd floor)
WRITTEN EXAM
Questions about exam content will be answered at the beggining of  morning lecture  on Tuesday 26.3.2019
Sample exam
Tuesday 11.4.2019!DEADLINE for your FINAL ASSIGNMENT's submission. By email to: Mariola.pytlikova@cerge-ei.cz