Economics of Human Resources

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1 Instructor: Sanae Tashiro ECN 151B: Section 50245, Office & Phone: Rm 1104; Classes: MWF 2:10-3:00PM Office Hours: MW 10-11AM & 4-5PM Discussions: R 6:10-7PM, 7:10-8PM (or by appointment) Location: WELLMN 230; HOAGLD Economics of Human Resources Course Description: Economics of Human Resources (ECN 151B) is the second half of a two quarter undergraduate course in labor economics that focuses on the economic study of human behavior regarding labor market operations. This course includes topics on: the theory of human capital and economics of education; theories of labor market discrimination; the structure of wages, including income distribution, skill-biased technological change, and earning inequality; and labor mobility. We will also explore a variety of important public policies that affect labor market outcomes. Basic calculus, knowledge of statistics, and graphical techniques will be used to analyze these issues. Prerequisite: ECN 100 or 104, ECN 151A. Recommended: ECN 102 and/or ECN 140. Course Objective: The main objective of this course is for students to attain a general understanding of issues that have been raised in labor market operations and to develop a keen interest in analyzing various topics related to labor market outcomes. The students will: (1) learn the important facts and basic institutional background about issues in the selected areas; (2) become familiar with the models that are used to analyze these issues; (3) develop critical thinking, skills, and knowledge to evaluate various issues that affect labor market outcomes; and (4) learn a variety of important public policies that affect labor market operations. Required Textbook/Readings: George J. Borjas, Labor Economics, 3rd Edition, Irwin McGraw-Hill. Assigned Academic Journal Articles (Except Reading 12) Recommended Textbooks: Ehrenberg, R. G. and R. S. Smith, Modern Labor Economics, 8th Edition, Addison-Wesley 1

2 Determination of Final Grade: Three Midterms (The lowest scores will be dropped) 50% (Each 25%) Final Exam (Cumulative) 35% 4 Problem Sets (The lowest scores will be dropped) 15% (Each 5%) The grading scale for the course will be: A+ 98 C A C A C B D B F 54 B Examinations: There will be three midterm exams and a final exam. All exams will consist of multiple choice, true or false, problem solving, and/or short essay questions. Assignments: There will be four problem sets. The problem sets will include multiple choice, true or false, problem solving, and/or short essay questions. Students are expected to submit the problem sets at the scheduled time; exceptions must be negotiated in advance (except in the case of an emergency). Late submissions, if accepted, will bear the opportunity cost of a decreased grade. The following is the schedule for assignments. Problem Set Assigned Due Problem Set #1 4/1 (F) 4/13 (W) Problem Set #2 4/18 (M) 4/29 (F) Problem Set #3 5/4 (W) 5/20 (F) Problem Set #4 5/25 (W) 6/8 (W) 2

3 Course Policies: Attendance: Exam: Drop Class: Assignments: Cheating: Every student is expected to attend and to participate in class. If you miss a class, you are responsible for obtaining class notes, assignments, etc. There are NO MAKE-UP EXAMS. So, please do not miss any of the dates when exams are given. If you decide to drop the class, you must submit a program change at SISWeb within the time period that drops are allowed. Each student is expected to write and submit his/her own assignments. The submission of work that is not the product of the student s own efforts is dishonest and will be graded as a zero on the assignment. The official policy states that examples of academic dishonesty are as follows: Receiving or providing unauthorized assistance on examination; Using unauthorized materials during an exam; Taking an exam for another; Altering an exam and submitting it for re-grading; and Plagiarism-using materials from sources without citations. The University policy provides as follows: Examinations may be monitored; Students found in violation shall receive an F or zero for that examination or assignment; Additional sanctions may be imposed by the Office of Student Conduct; Any contested accusation of academic dishonesty shall be adjudicate by proper administrative authority, and the finding of guilty or innocence by the authority shall be final. Others: Please TURN OFF ALL CELL PHONES. If you have a documented disability and wish to receive academic accommodation, please contact the Student Disability Center at (530) or (TTY), and the Department of Economics, Room 1113, at (530)

4 Lectures, Reading Assignments and Due Dates Lecture Date Topic Textbook Article Assign Turn In I. Chapter 7: Human Capital Theory 1 4/1 (F) Education in the Labor Market pp PS#1 2 4/4 (M) The Schooling Model pp /6 (W) Education and Earnings pp Reading 1 4 4/8 (F) Policy Application: School Quality pp Reading 2 5 4/11 (M) Schooling and Signaling Theory pp Reading 3 6 4/13 (W) Schooling and Signaling Theory pp PS#1 Exam 4/15 (F) Midterm Examination #1 II. Chapter 10: Labor Market Discrimination 7 4/18 (M) Race and Gender in the Labor Market pp PS#2 8 4/20 (W) Employer Discrimination pp Reading 4 9 4/22 (F) Statistical Discrimination pp Reading /25 (M) Statistical Discrimination pp /27 (W) Measuring Discrimination pp /29 (F) Policy Application: Black-White Wage pp Reading 6 PS#2 Exam 5/2 (M) Midterm Examination #2 III. Chapter 8: The Wage Structure 13 5/4 (W) The Wage Structure: Basic Facts pp PS#3 14 5/6 (F) Demand Shifts and Wages pp Reading /9 (M) Supply Shifts and Wages pp Reading /11 (W) Sill-Biased Technological Change pp Reading /13 (F) Sill-Biased Technological Change pp Reading /16 (M) Institutional Change pp Reading /18 (W) Existing Explanation - Problems pp Reading /20(F) Existing Explanation - Problems pp PS#3 Exam 5/23 (M) Midterm Examination #3 IV. Chapter 9: Labor Mobility 21 5/25 (W) Migration: Basic Facts pp PS#4 22 5/27 (F) Immigration in the U.S. pp Reading 13-5/30 (M) NO CLASS Memorial Holiday 23 6/1(W) Immigration in the U.S. pp Reading /3 (F) The Decision to Immigrate pp /6 (M) Policy Application: Benefits pp Reading /8 (W) Policy Application: Benefits pp PS#4 Exam 6/14 (T) Final Examination (Cumulative) 10:30am 12:30pm 4

5 Article Reading Assignments The following journal articles are placed on reserve at Shields Library and are also available from various databases (such as JSTOR) and/or from each journal. In addition, the reader could be purchased at Navin s, 231 3rd Street, at the total price of $ CH 7: HUMAN CAPITAL THEORY Reading 1: Reading 2: Reading 3: Ashenfelter, Orley C. and Rouse, Cecilia., (1998) Income, Schooling, and Ability: Evidence from a New Sample of Identical Twins, The Quarterly Journal of Economics, vol. 113, no. 1, pp [ Source: ] Card, David E. and Krueger, Alan B., (1996) School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina, Journal of Economic Perspective, vol. 10, no. 4, pp [ Source: ] Jaeger, David A. and Page, Marianne E., (1996) Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education, Review of Economics and Statistics, vol. 78, no. 4, pp [ Source: ] CH 10: LABOR MARKET DISCRIMINATION Reading 4: Reading 5: Reading 6: Bodvarsson, Orn B. and Brastow, Raymond T., (1999) A Test of Employer Discrimination in NBA, Contemporary Economic Policy, vol. 17, no.2, pp Barbezat, Debra A. and Hughes, James W., (1990) Sex Discrimination in Labor Markets: The Role of Statistical Evidence: Comment, The American Economic Review, vol. 80, no. 1, pp [ Source: ] Couch, Kenneth and Daly Mary C., (2002), Black-White Wage Inequality in the 1990s: A Decade of Progress, Economic Inquiry, vol. 40, no. 1, pp

6 CH 8: THE WAGE STRUCTURE Reading 7: Reading 8: Reading 9: Johnson, George, (1997) Changes in Earnings Inequality: The Role of Demand Shifts, Journal of Economic Perspectives, vol. 11, no. 2, pp [ Source: ] Topel, Robert H., (1997) Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality, Journal of Economic Perspectives, vol. 11, no. 2, pp [ Source: ] Krueger, Alan B., (1993), How Computers Have Changed The Wage Structure From Microdata, , The Quarterly Journal of Economics, vol. 108, no. 1, pp [ Source: ] Reading 10: DiNardo, John E. and Pischke, Jorn-Steffen, (1997), The Returns to Computer Use Revisited: Have Pencils Changed The Wage Structure Too? The Quarterly Journal of Economics, vol. 112, no. 1, pp [ Source: ] Reading 11: Fortin, Nicole M. and Lemieux, Thomas, (1997) Institutional Changes and Rising Wage Inequality: Is There a Linkage? Journal of Economic Perspectives, vol. 11, no. 2, pp [ Source: ] Reading 12: Card, David E. and DiNardo, John E., (2002) Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles, Journal of Labor Economics, vol. 20, no. 4, pp CH 10: LABOR MOBILITY Reading 13: Butcher, Kristin F. and DiNardo, John E., (2002) The Immigrant and Native-Born Wage Distributions: Evidence from the United States Censuses, Industrial and Labor Relations Review, vol. 56, no. 1, pp Reading 14: Reed, Deborah, (2001), Immigration and Males Earning Inequality in the Regions of the United States, Demography, vol. 38, no. 3, pp Reading 15: Card, David E. and DiNardo, John E., (2000) Do Immigrant Inflows Lead to Native Outflows?, The American Economic Review, vol. 90, no. 2, pp [ Source: ] 6

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