John Kennan January 2016
5:30-7:30 TTh
6116 Soc Science
Office Hours (6434 Soc Science): Mondays, 1:30-3:30 (or by appointment)
This course is part of a two-semester field sequence which includes Econ 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 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, labor market effects of international trade, life-cycle age-earnings profiles, and returns to human capital investments. Actual labor markets differ from the competitive ideal in many ways. Topics include unemployment, discrimination, costly migration within and across countries, efficiency wages and other incentive schemes, and bargaining between workers and employers to divide monopoly rents.
You are expected to complete a research paper in labor economics, (this might lead to a paper satisfying the
labor field paper requirement). The paper 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. Joint projects are
welcome (although no more than two students should be involved in a joint project). An outline of the paper (2-3
pages) is due by February 5, and you will be asked to present a description of your project in class shortly afterward.
The paper is due at 5 PM on Friday, May 6. Meeting the deadline is an important part of this exercise, so there will
be NO EXTENSIONS.
You will also make a classroom presentation during the semester, on a paper (or papers) related to the course material. These presentations may be made individually or jointly by a pair of students. 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 (takehome) exam, your research paper, and classroom presentation and participation.
The following course materials will be available at www.ssc.wisc.edu/~jkennan/teaching/teaching.htm.