Department of Economics
Ohio Wesleyan University
Delaware, Ohio
Economics 277
Labor Economics & Problems
Robert J. Gitter
Spring 2010
Syllabus
Course Description - This course deals with the many aspects of labor in our economy. We will
focus on both the theoretical and empirical aspects of labor economics and the policy
implications they lead us to. Among the topics we will deal with in this course are the demand
for labor, the supply of labor (labor force participation and hours worked), the determinants of
wage rates, unions and unemployment.
Prerequisites - Economics 110 (Principles of Economics) with a grade of at least C -.
Course Goals - The goal of this course is to give you a better understanding of the role of labor
in the economy. For the most part we will use the traditional models of economic analysis
(supply and demand, as well as the economic models of the firm and the consumer) to analyze
the market for labor. Labor, however, is a unique good in that the product (labor services) can
not be separated from the seller. (As Henry Ford said, “Why is it that I always get the whole
person when what I really wanted is a pair of hands?”) This unique feature of labor has resulted
in some special aspects of labor, e.g. unions, labor laws and compensation systems. We will also
explore these institutions in the course. It is my hope that by taking this course you will have a
better understanding of the role of labor. This should serve you well when hiring the
labor services of others, supplying your own labor, or evaluating government proposals to affect
the supply and/or demand for labor.
Course Structure - You are encouraged to attend the lectures as they will not be repetitions of
your readings. I believe that some concepts are more easily presented in the lecture format
while others can best be learned from the text. It is strongly suggested that you read the
assignment before coming to the lecture, as often I will use the reading as a spring board for a
lecture.
Texts - The textbook for this course is The Economics of Labor Markets by Bruce E. Kaufman
and Julie L. Hotchkiss (seventh edition). There will also be additional short readings assigned.
We will also be reading and discussing a book to be determined later.
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Course Assignments - There will be three exams in this course: two midterms and a final exam.
There will also be homework and computer assignments some weeks. The weights of the various
course requirements in determining the final grade are:
Approximate Date
First Midterm Exam
Monday, February 15
Second Midterm Exam
Monday, March 29
Final Exam
Final Exam Period
(The Final Exam is required of all students and will not be given early.)
Quizzes
SHAD/ Computer Exercises
Book Discussion
% of Grade
25.0 %
25.0 %
25.0 %
10.0 %
7.5 %
7.5 %
Five quizzes will be given throughout the semester. You will be allowed to drop your lowest
quiz grade or computer assignment in computing your average.
Attendance – Your attendance in class is highly recommended as lectures diverge from the
readings and you are responsible for both. To encourage your classroom attendance, an
attendance sheet will be circulated each class. Students who miss no more than one class during
each third of the course will have some choice as to which questions they can answer on the
subsequent exam. Students who miss more than one class will have to answer all questions.
Grading Scale
A
88 and above
A87-88
B+
85-87
B
79-85
B78-79
C+
76-78
C
71-76
C70-71
D+
69-70
D
66-69
D65-66
F
65 or below
Women's Studies - This course is a cognate for the Women's Studies major and minor. Students
wishing to apply the course towards this program should contact me by the beginning of the
second week of class so that I can tailor some of your readings and assignments towards
women's issues.
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Office Hours: Room 217, R.W. Corns Building
Monday, Wednesday and Friday 3:10-4:00
Thursday (and most Tuesdays)
11:00-noon
And by appointment
Office Phone - 368-3536
E-Mail - rjgitter@owu.edu (a great way to reach me)
Web Page - http://www.owu.edu/~rjgitter
Common Courtesies – Sometimes common courtesy isn’t very common. I do, however, have a
modicum of control over my classroom. Students who arrive late, have cell phones ring or surf
the net while I am lecturing are disruptive to others and especially me. Anyone engaging in
these activities will be levied a one dollar fine which I will donate to the departmental secretary’s
candy fund. As economists like to say, people respond to incentives.
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Economics 277 - Reading List
Note: Additional readings will be assigned. Only specifically assigned appendixes are required.
Week Dates
Topics
Readings
1
Jan. 11 - 15
Introduction, Hours of
Work
Chap. 1, pp. 44-61
Appendix 2A
2
Jan. 18 - 22
Hours, Intro to LF Part (Quiz)
pp. 62-95, 114-130
3
Jan. 25 - 29
Labor Force Participation
pp. 130-163
4
Feb. 1 -5
Demand for Labor (Quiz)
Chap. 4
5
Feb 8 - 12
Long Run Demand for Labor
Chap. 5
FIRST MID-TERM – MONDAY, FEBRUARY 15
Economic Outlook Conference at OWU Monday night Feb. 15. Extra credit opportunity.
6
Feb. 17-19
Wages
pp. 260-281
7
Feb. 22 -26
Minimum Wages and Monopsony
pp. 281-307
8
Mar. 1 - 5
Human Capital (Quiz)
Chap. 7
Mar. 8 -12 SPRING BREAK. NO CLASSES.
9
Mar. 15 -19
Wage Setting & Fringe Benefits
Chap. 8 (omit pp. 397-403)
pp. 552-555
10
Mar 22 -26
Discrimination (Quiz)
Chap. 9
SECOND MID-TERM – MONDAY, MARCH 29
11
Mar. 31 – Apr. 2
Human Resources
pp. 505-534
12
Apr. 5 – 9**
Book Discussion
To Be Announced
** Dates of book discussion might be changed. To be announced.
13
Apr. 12 -16
Unions
Chap. 11
14
Apr. 19 - 23
Impact of Unions (Quiz)
Unemployment
Chap. 12, 13 (beginning)
15
Apr. 26 – 28
Unemployment
Chap. 13
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