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Regular version of the site
Master 2019/2020

Labor Market Economics

Type: Elective course (Applied Economics)
Area of studies: Economics
When: 1 year, 4 module
Mode of studies: offline
Instructors: Sergey Solntsev
Master’s programme: Applied Economics
Language: English
ECTS credits: 3
Contact hours: 36

Course Syllabus

Abstract

The course covers and discusses recent advances in Labor Economics, with an emphasis on the interaction between theory and empiric. It is appropriate for graduate students with preparation in microeconomic theory and econometrics. The course starts by discussing principles of the labor market analyses and the labor market flows. It proceeds covering theories of labor supply and demand, and economic research analyzing human capital accumulation, and wage differences. Topics covered include the internal labor markets, unemployment and job search. Although the course material is based primarily on recent articles, there are several useful textbooks. The undergraduate textbooks by G. Borjas is suitable for introductory background reference in Labor Economics. A nice guide to the empirical methods is “Mostly Harmless Econometrics” by J. Angrist and J-S. Pischke. A lot of comprehensive surveys of various topics in Labor Economics are available in the vast Handbook of Labor Economics (vol. 1, 2, 3a, 3b, 3c, 4a, 4b).
Learning Objectives

Learning Objectives

  • The aim of this course is not only to provide a comprehensive discussion of the status of research in the field of Labor Economics, but also to endow students to apply the skills acquired in microeconomic theory and econometrics courses to real-world topics.
Expected Learning Outcomes

Expected Learning Outcomes

  • analyze active labor market programs
  • analyze labor market flow using labor statistics
  • identify data for research in labor economics
  • use various labor supply models for labor market empirical analyses
  • use labor demand model for labor market empirical analyses
  • use Becker and Spence models to analyze demand for education
  • estimate return to education and on-the-job training
  • estimate compensating wage differential
  • analyze labor market discrimination and segregation
  • analyze internal labor market and unions as wage determinant
  • estimate unemployment rate and duration
Course Contents

Course Contents

  • Introduction to Labor Economics. Labor Structure
    Labor market analyses. Labor market flows. Data collection.
  • Labor Supply
    Labor supply trends. Labor supply models. Participation decision. Household production. Family models. Empirical estimation.
  • Labor Demand
    Labor demand models (SR, LR). Cross-elasticity of demand. Empirical estimation.
  • Human Capital
    Demand for education (Becker and Spence models). On-the-job training. Return on human capital. Empirical methods.
  • Wage Differences
    Employee and jobs heterogeneity. Compensating wage differential. Discrimination. Segregation. Internal labor market. Effective wage. Unions.
  • Unemployment and Job Search
    Unemployment duration. Job search model. Active labor market programs.
Assessment Elements

Assessment Elements

  • non-blocking Exam
    The Final Exam will consist of four essay questions. The topics for the questions for the final exam will cover material of program (lectures, seminars and articles). Exam will be in written form. Exam will be online via Zoom. Link for exam- https://zoom.us/j/91087457509 For exam students should have a computer with internet connection, Word editor, and device to scan and upload drawing to computer (scanner, smartphone etc). Exam will be on June 18 from 10:30AM (Moscow time). Duration of exam is 80 minute. Exam tasks in pdf format will be available at lms.hse.ru in course folder (Files) at the beginning of exam. Also it will be send to students via Zoom. Students should prepare and write their answers to exam tasks in Word Editor (MS Word or similar) in doc, docx or rtf format. Graphs can be drawn by hand on paper, scanned and inserted into exam paper. Exam papers should be uploaded to lms.hse.ru to Project/Exam before the end of examination. During exam students should be available in Zoom and could ask questions on exam tasks via Zoom. In case of short-term problem (up to 30 min.) with Internet connection student has to inform lecturer immediately about it via Zoom or email (ssolntsev@hse.ru). In case of long-term problem (more than 30 min) student can inform lecturer about it via email (ssolntsev@hse.ru) and faculty staff that she/he can not continue exam and ask for reexamination. Reexamination can be conduct with more difficult tasks.
  • non-blocking Paper Review
  • non-blocking Project
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.5 * Exam + 0.2 * Paper Review + 0.3 * Project
Bibliography

Bibliography

Recommended Core Bibliography

  • Card, D., & Ashenfelter, O. (2010). Handbook of Labor Economics. Amsterdam: North Holland. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=355581
  • Labor economics, Borjas, G. J., 2015
  • Mostly harmless econometrics : an empiricist's companion, Angrist, J. D., 2009

Recommended Additional Bibliography

  • Anderson, P. M., & Brgess, S. M. (2000). Empirical Matching Functions: Estimation and Interpretation Using State-Level Data. Review of Economics & Statistics, 82(1), 93–102. https://doi.org/10.1162/003465300558669
  • Becker, G. S. (1965). A Theory of the Allocation of Time. Economic Journal, 75(299), 493–517. https://doi.org/10.2307/2228949
  • Ben Jann. (2008). A Stata implementation of the Blinder-Oaxaca decomposition. ETH Zurich Sociology Working Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.ets.wpaper.5
  • Bertrand, M., & Mullainathan, S. (2004). Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination. American Economic Review, 94(4), 991–1013. https://doi.org/10.1257/0002828042002561
  • Blau, F. D., & Kahn, L. M. (2007). Changes in the Labor Supply Behavior of Married Women: 1980——2000. Journal of Labor Economics, 25(3), 393–438. https://doi.org/10.1086/513416
  • Camerer, C., Babcock, L., Loewenstein, G., & Thaler, R. (1997). Labor Supply of New York City Cabdrivers: One Day at a Time. Quarterly Journal of Economics, 112(2), 407–441. https://doi.org/10.1162/003355397555244
  • Card, D., & Krueger, A. B. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772–793. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=9410250161
  • Crépon, B., Duflo, E., Gurgand, M., Rathelot, R., & Zamora, P. (2013). Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment*. Quarterly Journal of Economics, 128(2), 531–580. https://doi.org/10.1093/qje/qjt001
  • DeVaro, J., & Morita, H. (2013). Internal Promotion and External Recruitment: A Theoretical and Empirical Analysis. Journal of Labor Economics, 31(2), 227–269. https://doi.org/10.1086/667814
  • Dinardo, J., & Lee, D. S. (2004). Economic Impacts of New Unionization On Private Sector Employers: 1984–2001. Quarterly Journal of Economics, 119(4), 1383–1441. https://doi.org/10.1162/0033553042476189
  • Dobbie, W., & Fryer, R. G. (2015). The Medium-Term Impacts of High-Achieving Charter Schools. Journal of Political Economy, 123(5), 985–1037. https://doi.org/10.1086/682718
  • Dube, A., Lester, T. W., & Reich, M. (2010). Minimum Wage Effects across State Borders: Estimates Using Contiguous Counties. Review of Economics & Statistics, 92(4), 945–964. https://doi.org/10.1162/REST_a_00039
  • Gronau, R. (1977). Leisure, Home Production, and Work——the Theory of the Allocation of Time Revisited. Journal of Political Economy, 85(6), 1099. https://doi.org/10.1086/260629
  • Konings, J., & Lehmann, H. (2002). Marshall and Labor Demand in Russia: Going Back to Basics. Journal of Comparative Economics, (1), 134. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jcecon.v30y2002i1p134.159
  • Lazear, E. P., & Oyer, P. (2004). Internal and external labor markets: a personnel economics approach. Labour Economics, (5), 527. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.labeco.v11y2004i5p527.554
  • Meghir, C., & Palme, M. (2005). Educational Reform, Ability, and Family Background. American Economic Review, 95(1), 414–424. https://doi.org/10.1257/0002828053828671
  • Mincer, J., & Polachek, S. (1974). Family Investment in Human Capital: Earnings of Women. Journal of Political Economy, (2), 76. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ucp.jpolec.v82y1974i2ps76.s108
  • Neumark, D., & Wascher, W. (2000). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment. American Economic Review, 90(5), 1362–1396. https://doi.org/10.1257/aer.90.5.1362
  • Nickell, S. (1997). Unemployment and Labor Market Rigidities: Europe versus North America. Journal of Economic Perspectives, 11(3), 55–74. https://doi.org/10.1257/jep.11.3.55
  • Nickell, S. J., & Symons, J. (1990). The Real Wage-Employment Relationship in the United States. Journal of Labor Economics, (1), 1. https://doi.org/10.1086/298234
  • Travkin, P., & Sharunina, A. (2016). The returns to training in Russia: a difference-in-differences analysis. International Journal of Training & Development, 20(4), 262–279. https://doi.org/10.1111/ijtd.12088
  • Unemployment dynamics and duration dependence. (1996). Journal of Labor Economics, 14, 100–125. https://doi.org/10.1086/209805