Labor Economics

3 Credits · Level: Graduate, Undergraduate

Econ 561 course aims to introduce the main research areas in labor economics, and to provide a foundation for original research in the field. This course, as well as a similar course on Public Economics to be offered in the Summer 2014 semester, stresses the interaction between theory and empirical work, and emphasize estimation strategies, introducing theory as necessary. The material covered deals with labor supply decisions made by individuals, labor demand of firms, and the equilibrium wage and employment patterns implied by these decisions when markets are competitive or nearly so. Applications include the analysis of wage differentials, life-cycle age-earnings profiles, and returns to human capital investments. Topics will include efficiency wages, discrimination, bargaining, minimum wages, tax incidence, and unemployment. By the end of the course, students should be discriminating consumers of empirical work in labor economics, and have ideas about possible research topics for future self-directed empirical projects. Students will make a classroom presentation during the semester, on a paper (or papers) from the reading list, with a discussion of connections with related work on the reading list. Grades will be based on a final exam, homework assignments, and participation and presentations. For M.A. in Applied Economics Students. MAST graduate students need approval of APEC Program Director, Prof. Peracchi, to enroll. Credits: 3 Prerequisites: ECON-551.