Economics 751: Labor Economics
Syllabus
September, 2007
2:30-3:45 TTh
5322 Social Science
John Kennan, 6434 Social Science
Office Hours: Mondays, 1:30-3:30 (or by appointment)
This course is part of a two-semester field sequence which includes Economics 750. The sequence aims to present a detailed analysis of the main areas in labor economics, and to provide a foundation for original research in the field. Both 750 and 751 stress the interaction between theory and empirical work.
The core material, covered in the first part of the course, deals with labor supply decisions made by rational households, labor demand decisions made by profit-maximizing firms, and the equilibrium wage differentials and employment patterns implied by these decisions when markets are competitive. Applications include the analysis of industry wage differentials, life-cycle age-earnings profiles, and returns to human capital investments. The last part of the course considers various ways in which labor markets may differ from the competitive ideal. Topics include efficiency wages and other incentive schemes, discrimination, bargaining between workers and employers to divide monopoly rents, and unemployment.
You are expected to make substantial progress on a research project in labor economics, and complete a progress report (10-20 pages). The research project might lead to a paper satisfying the labor field paper requirement. The progress report must describe original research, rather than merely surveying the literature. You must hunt for your own topic, although you are welcome to bounce ideas off me. A sketch of the project (2-3 pages) is due by November 16, and you will be asked to present a description of your project in class shortly afterward. The report is due at 5 PM on Friday, December 10. Meeting the deadline is an important part of this exercise, so there will be NO EXTENSIONS.
You will make another classroom presentation during the semester, on a paper (or papers) from the reading list. You must use your own judgement on which paper to present, and you will be asked to discuss the connections between this paper and related work on the reading list.
Grades will be based on three things, with equal weights on each: a final exam, your research project, and classroom presentation and participation.
The following course materials are available at www.ssc.wisc.edu/~jkennan/teaching.htm.