ADVANCED TOPICS IN LABOUR ECONOMICS ECO6193A PIERRE BROCHU FALL 2011

Transcription

1 ADVANCED TOPICS IN LABOUR ECONOMICS ECO6193A PIERRE BROCHU FALL 2011 Course schedule: Tuesday 14:30-17:30 Course location: DMS Office: DMS Office hours: Monday 9:30-10:30; Thursday 15:30-16:30 Telephone: ext OFFICIAL COURSE DESCRIPTION This is the third course in the labour sequence and is aimed at both M.A. and PhD students. Topics will include: labour demand and minimum wages, employment and unemployment, labour market transitions, inequality and unions. An important goal of this course is for students to learn how to use economic data to address an economic question of interest. As such, students will be required to apply econometric methods to data using the STATA software package. Students will be able to access STATA in the undergraduate computer lab located in DMS 2175 (or MNT 141 or LMX 354). EVALUATION Empirical assignments 20% Term paper 30% Final exam 50% The term paper is due on the last day of class (i.e. December 7 th ). COURSE WEB SITE There is a Blackboard course web site for this course. You can access this web site on: Log into the Virtual Campus using your Infoweb username and password. GENERAL COMMENTS Class notes will not be made available to students. If you miss a class, I encourage you to ask a fellow student about the content missed and borrow their notes. Absence from an examination or late submission of an assignment Absence from any examination or test, or late submission of assignments due to illness, must be justified; otherwise, a penalty will be imposed. The Faculty reserves the right to accept or reject the reason offered. Reasons such as travel, employment, and misreading the examination schedule are not usually accepted. Advanced Topic in Labour Economics (ECO6193A) Page 1 of 6

2 Beware of Academic Fraud! Academic fraud is an act committed by a student to distort the marking of assignments, tests, examinations, and other forms of academic evaluation. Academic fraud is neither accepted nor tolerated by the University. Anyone found guilty of academic fraud is liable to severe academic sanctions. Here are a few examples of academic fraud: engaging in any form of plagiarism or cheating; presenting falsified research data; handing in an assignment that was not authored, in whole or in part, by the student; submitting the same assignment in more than one course, without the written consent of the professors concerned. In recent years, the development of the Internet has made it much easier to identify academic plagiarism. The tools available to your professors allow them to trace the exact origin of a text on the Web, using just a few words. In cases where students are unsure whether they are at fault, it is their responsibility to consult the University s Web site at the following address: «Tools for Writing Papers and Assignments». Persons who have committed or attempted to commit (or have been accomplices to) academic fraud will be penalized. Here are some examples of the academic sanctions, which can be imposed: a grade of «F» for the assignment or course in question; an additional program requirement of between 3 and 30 credits; suspension or expulsion from the Faculty. Last session, most of the students found guilty of fraud were given an «F» for the course and had between three and twelve credits added to their program requirement. For more information, refer to: TEXTBOOK AND READINGS There are no required texts for this course. Students that who have no undergraduate preparation in labour economics may wish to consult an undergraduate labour text such as: Labour Market Economics by Benjamin, Gunderson, Lemieux and Riddell, or Modern Labor Economics by Ehrenberg and Smith. For more advanced references, students may wish to consult the Handbooks of Labor Economics (volumes 3A, 3B, 3C, 4A and 4C) or Labor Economics by Cahuc and Zylberberg. COURSE OUTLINE 1. Labour Demand and Minimum Wages Labour Demand Hamermesh, D. S. (1993), Labor Demand, Princeton University Press, Princeton. Advanced Topic in Labour Economics (ECO6193A) Page 2 of 6

3 Minimum Wages Baker, M., Benjamin, D. and Stanger, S. (1999), The highs and lows of the minimum wage effect: A time-series cross-section study of the Canadian law, Journal of Labor Economics 17(2), Brown, C. (1999), Minimum wage, Employment and the distribution of income, in O. Ashenfelter and D. Card, eds, Handbook of Labor Economics, Vol. 3A, North Holland, New York, chapter 32, pp Brown, C., Gilroy, C. and Kohen, A. (1982), The effect of the minimum wage on teenage employment and unemployment, Journal of Economic Literature 20(2), Campolieti, M., Fang, T. and Gunderson, M. (2005), Minimum wage impacts on youth employment transitions, , Canadian Journal of Economics 38(1), Card, D. and Krueger, A. B. (1994), Minimum wage and employment: A case study of the fastfood industry in New Jersey and Pennsylvania, American Economic Review 84(4), Card, D. and Krueger, A. B. (2000), Minimum wage and employment: A case study of the fastfood industry in New Jersey and Pennsylvania: Reply, American Economic Review 90(5), Gramlich, E. M. (1976), Impact of minimum wages on other wages, employment, and family incomes, Brookings Papers on Economic Activity 7(1976-2), Grossman, J. B. (1983), The impact of the minimum wage on other wages, Journal of Human Resources 18(3), Neumark, D., Schweitzer, M. and Wascher, W. (2004), Minimum wage effects throughout the wage distribution, Journal of Labor Economics 39(2), Neumark, D. and Wascher, W. L. (2000), Minimum wage and employment: A case study of the fast-food industry in New Jersey and Pennsylvania: Comment, American Economic Review 90(5), Newmark, D. and Wascher, W. L. (2007), Minimum wages and employment, IZA DP No Imperfect Labour Market Boal, W. M. and Ransom, M. R. (1997), Monopsony in the labor market, Journal of Economic Literature 35(1), Burdett, K. and Mortensen, D. T. (1998), Wage differentials, employer size, and unemployment, International Economic Review 39(2), Falch, T. (2010), The elasticity of supply at the establishment level, Journal of Labor Economics 28(2), Manning, A. (2003), Monopsony in Motion: Imperfect Competition in Labor Markets, Princeton University Press, Princeton. Pissarides, C. A. (2000), Equilibrium Unemployment Theory, 2nd edn, MIT Press, Cambridge, Massachusetts. Rogerson, R., Shimer, R. and Wright, R. (2005), Search-theoretic models of the labor market: A survey, Journal of Economic Literature 43(4), Staiger, D. O., Spetz, J. and Phibbs, C. S. (2010), Is there monopsony in the labor market? evidence from a natural experiment, Journal of Labor Economics 28(2), Advanced Topic in Labour Economics (ECO6193A) Page 3 of 6

4 Van den Berg, G. J. and Ridder, G. (1998), An empirical equilibrium search model of the labor market, Econometrica 66(5), Unemployment, Employment, and Labour Market Transitions Brochu, P. (2009), Estimating labour market transitions and continuations using repeated cross sectional data. Manuscript, University of Ottawa. Brochu, P. (2010), The source of change of the new Canadian job stability patterns. Unpublished Manuscript, University of Ottawa. Brochu, P. R. and Zhou, L. (2009), Is job insecurity on the rise? Evidence from Canadian perception data, Canadian Journal of Economics 42(4) Davis, S. J., Faberman, J. and Haltiwanger, J. (2006), The flow approach to labor markets: New data sources and micro-macro links, Journal of Economic Perspectives 20(3), Farber, H. S. (1998), Has the rate of job loss increased in the nineties, Working Paper 5014, Industrial relations Section Princeton University. Green, D. A. and Riddell, W. C. (1993), The economic effects of unemployment insurance in Canada: An empirical analysis of UI disentitlement, Journal of Labor Economics 11(1), S96 S147. Hall, R. E. (1982), The importance of lifetime jobs in the U.S. economy, American Economic Review 72(4), Heisz, A. (2005), The evolution of job stability in Canada: Trends and comparisons with U.S. results, Canadian Journal of Economics 38(1), Jones, S. R. G. and Riddell, W. C. (1999), The measurement of unemployment: An empirical approach, Econometrica 67(1), Notes and Comments. Neumark, D., Polsky, D. and Hansen, D. (1999), Has job stability declined yet? New evidence for the 1990s, Journal of Labor Economics 17(4), S29 S64. Riddell, W. C. (2005), Why is Canada s unemployment rate persistently higher than in the United States?, Canadian Public Policy 31(1), Schmidt, S. R. (1999), Long-run trends in workers beliefs about their own job security: Evidence from the general social survey, Journal of Labor Economics 17(4), S127 S141. Swinnerton, K. A. and Wial, H. (1995), Is job stability declining in the U.S. economy?, Industrial and Labor Relations Review 48(2), Swinnerton, K. A. and Wial, H. (1996), Is job stability declining in the U.S. economy? a reply to Diebold, Neumark and Polsky, Industrial and Labor Relations Review 49(2), Ureta, M. (1992), The importance of lifetime jobs in the U.S. economy, revisited, American Economic Review 82(1), Unions Bennett, J. T. and Kaufman, B. E., eds (2007), what Do Unions Do? A Twenty-Year Perspective, Transaction Publishers, New Brunswick, U.S.A. Blanchflower, D. G. and Bryson, A. (2004), What effect do unions have on wages now and would Freeman and Medoff be surprised?, Journal of Labor Research 25(3), Card, D. (1996), The effect of unions on the structure of wages: A longitudinal analysis, Econometrica 64(4), Advanced Topic in Labour Economics (ECO6193A) Page 4 of 6

5 Card, D., Lemieux, T. and Riddell, W. C. (2005), Unions and the wage structure, Journal of Labor Research 25(4), Farber, H. S. (1983), The determination of the union status of workers, Econometrica 51(5), Farber, H. S. (1986), Chapter 18 the analysis of union behavior, Vol. 2 of Handbook of Labor Economics, Elsevier, pp Farber, H. S. (1990), The decline of unionization in the United States: What can be learned from recent experience, Journal of Labor Economics 8(1), S8 S25. Farber, H. S. (2001), Notes on the economics of labor unions, Working Papers 452, Princeton University, Department of Economics, Industrial Relations Section. Farber, H. S. and Saks, D. H. (1980), Why workers want unions: The relative wages and job characteristics, Journal of Political Economy 88(2), Freeman, R. B. and Medoff, J. L. (1984), What Do Unions Do?, Basic Books, New York. Hirsch, B. T. (2008), Sluggish institutions in a dynamic world: Can unions and industrial competition coexist?, Journal of Economic Perspectives 22(1), Lewis, H. G. (1986), Union Relative Wage Effects: A Survey, Chicago University Press, Chicago. Riddell, C. and Riddell, W. C. (2004), Changing patterns of unionisation: The North American experience, , in A. Verma and T. A. Kochan, eds, Unions in the 21st Century, Palgrave Macmillan, London, chapter 11, pp Schnabel, C. (2003), Determinants of trade unions, International Handbook of Trade Unions, Eward Elger. 5. Wage inequality Autor, D. H., Katz, L. F. and Kearney, M. S. (2006), The polarization of the U.S. labor market, American Economic Review 96(2), Autor, D. H., Katz, L. F. and Kearney, M. S. (2008), Trends in U.S. wage inequality: Revising the revisionists, Review of Economics and Statistics 90(2), Beaudry, P. and Green, D. A. (2000), Cohort patterns in Canadian earnings: Assessing the role of skill premia in inequality trends, Canadian Journal of Economics 33(4), Beaudry, P. and Green, D. A. (2003), Wages and employment in the United States and Germany: What explains the differences?, American Economic Review 93, Beaudry, P. and Green, D. A. (2005), Changes in us wages, : On going skill bias or Major technological change?, Journal of Labour Economics 23(3), Blau, F. D. and Kahn, L. M. (1996), International differences in male wage inequality: Institutions versus market forces, Journal of Political Economy 104(4), DiNardo, J., Fortin, N. M. and Lemieux, T. (1996), Labor market institutions and the distribution of wages, : A semiparametric approach, Econometrica 64(5), Frenette, M., Green, D. A. and Milligan, K. (2007), The tale of the tails: Revisiting recent trends in after-tax income inequality using census data, Canadian Journal of Economics 40(3), Gottschalk, P. and Moffitt, R. (2009), The rising instability of U.S. earnings, Journal of Economic Perspectives 23(4), Juhn, C., Murphy, K. M. and Pierce, B. (1993), Wage inequality and returns to skill, Journal of Political Economy 101(3), Advanced Topic in Labour Economics (ECO6193A) Page 5 of 6

6 Katz, L. F. and Autor, D. (1999), Changes in the wage structure and earnings inequality, in O. Ashenfelter and D. Card, eds, Handbook of Labor Economics, Vol. 3, Elsevier, New York, chapter 26, pp Katz, L. F. and Murphy, K. M. (1992), Changes in relative wages, : Supply and demand factors, Quarterly Journal of Economics 107(1), Technical Readings Angrist, J. D. and Krueger, A. B. (1999), empirical strategies in labor economics, in O. Ashenfelter and D. Card, eds, Handbook of Labor Economics, Vol. 3A, Elsevier, New York, chapter 23, pp Brochu, P. (2010), `Econometrics Labour Notes I, Unpublished Manuscript. Brochu, P. (2010), `Econometrics Labour Notes II, Unpublished Manuscript. Green, D. A. and Milligan, K. (2010), The importance of the long form census to Canada, Canadian Public Policy 36(3), Heckman, J. J. (1979), Sample selection bias as a specification error, Econometrica 47(1), Jones, F. L. (1983), On decomposing the wage gap: A critical comment on blinder s methods, Journal of Human Resources 18(1), Oaxaca, R. (1973), Male-female wage differentials in urban markets, International Economic Review 14(3), Oaxaca, R. L. and Ransom, M. R. (1994), On discrimination and the decomposition of wage differentials, Journal of Econometrics 61, Advanced Topic in Labour Economics (ECO6193A) Page 6 of 6