Labor Economics

Econ. 345

 

Spring Semester 2007

 

Instructor: Dr. Ken Smith

Office: McComsey 326

Tel.: 872-3582

E-mail: kenneth.smith@millersville.edu

Office Hours: Mon. & Fri. 8:30 – 9:45, Wed. 3:00 – 4:30, and Tues. 10:00 – 12:00 (or by appointment – I’m usually pretty flexible on Tues. & Thurs.)

 

Course Overview: This course applies the tools of microeconomics to one of the most important markets in any economy – the labor market.  Topics covered include: A) Labor Supply: the decision to work or not and, if one chooses work, how many hours to work.  B) Labor Demand: the decision by firms of how much labor to hire.  C) Wage Determination and Wage Differentials: determinants of one’s labor earnings and the economics of discrimination.  D) Unions: the effect of unions on the labor market.  E) Special Topics: time permitting, special topics in labor economics such as unemployment and migration will be addressed.

 

The following competencies considered fundamental to an understanding of economics are covered in this course:

 

A.        A thorough and complete understanding of the role of markets and market forces in our micro economy.

(1)        Be able to identify and explain the fundamental concepts of the market system such as the role of scarcity, opportunity cost, incentives, and marginal analysis.

(2)        Be able to critically analyze, explain, and model the role of consumers in a market economy by using techniques such as supply and demand analysis and utility maximization.

(3)         Be able to critically analyze, explain, and model production in a      market economy by using techniques such as supply and demand    analysis and profit maximization. 

 

D.        Exposure to various perspectives within economic thought.  The ability to recognize, explain, apply in a real world context, and critique

(1)        economics paradigms such as capitalism and market analysis, socialism, institutionalism, and feminist economics.

(2)        various economic institutions and economic systems.

(3)        economic theories derived from various economic paradigms and systems.

(4)        the historical basis for economic paradigms, systems, theories, and institutions.

F.         Develop and apply research and information management skills, including

(1)        locating primary and secondary economic sources of information with traditional and emerging library technologies.

(2)        evaluating the quality of a research source.

(3)        summarizing the content of a research source.

(4)        synthesizing, analyzing, and critiquing information across research sources.

(5)        creating a working hypothesis using economic modelling skills.

(6)        evaluating a working hypothesis using qualitative, logical, and quantitative methods.

(7)        recognizing the benefits and limitations to understanding attained from economic methods of analysis.

 

Prerequisites: Econ. 101 & Econ. 102

 

Required Text: The Economics of Labor Markets (7th edition), Bruce E. Kaufman and Julie L. Hotchkiss

 

Core Reading (supplemental readings will be assigned when appropriate)

 

I.      Introduction and Labor Supply Decisions

a)     Ch. 1 – The Labor Market

b)     Ch. 2 – Hours of Work

c)     Ch. 3 – The Labor Force Participation Decision

 

II.   Labor Demand

a)     Ch. 4 – Demand in the Short Run

b)     Ch. 5 – Demand in the Long Run

 

III. Wage Determination and Wage Differentials

a)     Ch. 6 – The Determination of Wages

b)     Ch. 7 – Human Capital and Wage Differentials

c)     Ch. 8 – Occupational Wage Differentials

d)    Ch. 9 – Labor Market Discrimination

 

 

 

 

 

 

 

 

 

 

 

Grading System

 

Grades will be determined by cumulative point totals based on the following:

 

Midterm Exam #1 – 100 points (Wed. Feb. 21 - tentative)

Midterm Exam #2 – 100 points (Wed. April 4 - tentative)

Problem Sets – 75 points (3 problem sets in all – one to be handed out prior to each exam)

Data Analysis Project – 75 points

Final Exam (comprehensive) – 150 points (Wed. May 9, 10:15 AM – 12:15 PM)

 

The midterm exams will be given in class and last 50 minutes.  The final exam will be a 2 hour cumulative exam.  Make-up exams will not be given without an excellent reason supported by documentation (i.e., a note from a doctor in case of illness).  Cheating on an exam will result in a zero score on that exam.  Cooperation on problem sets is encouraged though everyone must hand in each problem set.  Late problem sets will be penalized 5 pts. for each day or partial day they are late unless a valid excuse is provided for missing the deadline. The Data Analysis Project will give you a chance to work with actual survey data from some country to formulate an interesting question regarding labor markets and examine your question empirically.  Detailed information about the data analysis project will be provided at a later date.

 

The following is a reference representing the Maximum cumulative point total necessary to fall in each grade category.  I may curve downward depending on overall class performance.

 

A – 90-100%

B – 80-<89%

C – 70-<80%

D – 60-<70%