Labor Economics for Bachelor
- Instructor: Dr. Marie Elina Paul
(Office Hour: Wednesday, 11-12)
- Lecture: Tuesday 8:30 -10:00, HS 1023
- Exercise Session: Wednesday 8:30 -10:00, HS 1023
- Credits: Lecture (2 SWS) plus exercise session (2 SWS) gives 6 credits
- Language: The course is taught in English.
- Participants: Approximately 30
- Prerequisites: Basic Microeconomics, basic Macroeconomics, basic Econometrics
- Exam: Wednesday, August 3, 8:30 to 10:00 in Audimax. Bring a calculator.
If you wish to see you exam, please come to my office on September 9th at 13:30.
Announcements
A reader containing the slides used in the lecture and the problem sets is available at the bookshop Walthari (Bertoldstraße 28).
In the first week of the semester, we will have a second lecture on Wednesday (instead of the exercise session). In the last week of the semester we will then have two exercise sessions.
In the first lecture the following article will be discussed: Möller, J. (2010) "The German labor market response in the world recession - de-mystifying a miracle". Zeitschrift für ArbeitsmarktForschung, 42(4), pp. 325-336, http://www.springerlink.com/content/60x1512tpr61m03p/fulltext.pdf).
This is the first time a course "Labor Economics for Bachelor" will be taught. Therefore, no previous exams exist. You may want to have a look at the previous exams of the course "Labor Economics for Master / Diploma" which will be available on the webside of that course, but please note that the content and the level of these two courses differs!
Contents
Employment, wages and education are key aspects for the well being of most individuals in an economy and labor market policy is an important part of economic policy. This course provides an introduction to different important areas of labor economics. The course is based on theoretical models as well as on empirical studies. At several occasions current policy issues will be discussed.
The lecture is accompanied by a weekly exercise session in which we will discuss the solution of various exercises.
Outline
1 Introduction
Theory at Work: “The German labor market response in the world recession - demystifying a miracle” (Möller, 2010)
2 Labor Supply
2.1 Introduction
2.2 Static Labor Supply Model
2.3 Taxation of Labor Income
2.4 Welfare and Work Incentives
Theory at Work: Work Incentives under Hartz IV
2.5 Home Production
Theory at Work: Welfare Systems and their Incentives in OECD Countries
2.6 Some Remarks on the Empirical Estimation of Labor Supply Decisions
3 Human Capital
3.1 Introduction
3.2 Schooling Model
3.3 Estimating the Rate of Return to Schooling
Theory at Work: Using an Instrument Variable Approach to Estimate the Returns to
Schooling
3.4 General versus Specific Human Capital
3.5 Schooling as a Signal
4 Labor Demand
4.1 Introduction
4.2 Static Labor Demand Model
4.3 Equilibrium in the Labor Market and Minimum Wages
5 Unemployment
5.1 Introduction
5.2 Search Theory
5.3 Active Labor Market Policies
Theory at Work: Estimating Employment Effects of Training Programs
6 Labor Market Discrimination
6.1 Introduction
6.2 Different Forms of Discrimination on the Labor Market
6.3 Measuring Discrimination
6.4 Statistical Discrimination
Theory at Work: Statistical Discrimination and Unintended Effects of Parental Leave Policies
7 Personnel Economics: Incentive Wages, Efficiency Wages, Seniority Wages
Main Reference
- Borjas, G. J. (2010) Labor Economics, 5th edition, McGraw-Hill, Boston.
Further References
- Ashenfelter, O. und Card, D. (1999) Handbook of Labor Economics, Volume 3A-3C, Elsevier Science, Amsterdam.
- Franz, W. (2009) Arbeitsmarktökonomik, 7th edition, Springer Verlag, Heidelberg.
- Ehrenberg, R. G. and R. S. Smith (2009) Modern Labor Economics: Theory and Public Policy, 10th edition, Pearson.
- Lazear, E. P. (1998) Personnel Economics for Managers, Wiley, New York.
Further references will be given in the lecture.
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