Department of Economics
Syllabus for Economics 355
Spring Quarter 2015
Instructor Information
Prof. D.W. Hedrick
Office: Shaw-Smyser 420, 963-2426, dhedrick@cwu.edu,
Office Hours: Monday, Tuesday and Thursday 11:00-11:50 a.m. and T 2:00-3:00 p.m.
and by appointment.
Web Page: www.cwu.edu/~dhedrick/
Course Description:
This course provides an introduction to labor economics. The theoretical foundations of
the demand and supply of labor are presented and the implications of institutional
considerations and government policy on economic efficiency and equity are explored.
Statement of Purpose
Students will develop an appreciation of the application of economic analysis to
understanding the functioning of labor markets. They will deepen their understanding of
the theoretical concepts they gained in principles of economics through an in-depth study
of the behavior of households and businesses in the labor market. Students will become
familiar with publicly available sources of labor market data and their use in
understanding labor market conditions. Knowledge of the distinctive institutional
structure of labor markets in the United States will be obtained. Students will be able to
identify and understand the major theoretical and policy issues in labor economics.
Course Outcomes
After taking this class the student will be able to:
1) demonstrate an in-depth understanding of the choice-theoretic theory underlying the
demand and supply of labor;
2) analyze the impacts of various outside factors on wage and employment in labor
markets;
3) understand the impacts of market imperfections and government intervention on
conditions in labor markets;
4) comprehend how risk, education, mobility and productivity affects wages and
employment; and, if time allows,
5) show how to measure wages differences due to gender, race, and ethnicity; and
6) compare wages and employment in union and non-union employment settings.
Textbook
Required: Ehrenberg, Ronald G. and Robert S. Smith, Modern Labor Economic: Theory
and Public Policy, 10th Edition, Addison – Wesley, c2015.
Suggested Reading:
The Wall Street Journal and The Economist
Course Requirements
By virtue of enrollment in a College of Business Course class, all students are required to
commit themselves to learning the material and to acting in a civil manner in class and be
respectful of their peers and the professor. Behaviors contrary to the above will result in
disciplinary action and possible expulsion from the class. Attendance is not required but
strongly encouraged.
Grades will be based on five homework assignments (20 points each), three mid-term
examinations (100 points each), and an optional comprehensive final examination (100
points each and replaces the lowest midterm score). Makeup examinations will only be
given for emergencies and require a note signed by a physician or by a senior officer in
Student Affairs.
The homework assignments will be made available on Canvas and be due approximately
every two weeks). The mid-terms dates are Thursdays: April 16, May 8, and June 4.
No early or makeup finals will be given. If you cannot attend class on these dates,
drop the class and take it at another time. The final date is Tuesday, June 9th, 8:00
- 9:00 a.m. No early or makeup finals will be given.
Course Grading
Based upon the percentage of the 300 possible points. The following scale will be used
to determine the final grade:
A
>=93%
A>=90% and <93%
B+
>=87% and <90%
B
>=83% and <87%
B>=80% and <83%
C+
>=77% and <80%
C
>=73% and <77%
C>=70% and <73%
D+
>=67% and <70%
D
>=63% and <67%
D>=60% and <63%
F
<60%
Course Outline (Subject to change as circumstances indicate)
Topic
Text Chapter(s)
I . Introduction to Labor Economics
The Basics of Economic Analysis
Overview of the Labor Market
1, 1A
2
II. Business Behavior and the Demand for Labor
Demand for Labor
Labor Demand Elasticities
Frictions in the Labor Market
3, 3A
4, 4A
5
II. Household Behavior and the Supply of Labor
The Decision to Work
Household Production, Family and Lifecycle
Compensating Wage Differentials
Investments in Human Capital
Mobility of Labor
6
7
8
9
10
IV.
Issues in Labor Economics
Pay and Productivity
Gender, Race and Ethnicity
Unions
Inequality in Earnings
International Trade
11
12
13
14
15
Miscellaneous
Economics is a challenging subject for most and requires significant study to successfully
master and apply economic concepts. I suggest that you read, or at least skim, the
chapters in the text before they are covered in class. As soon after class as possible, I
suggest you retire to a quiet place and reread the text and recopy the lecture notes. This
will help reinforce what you have learned and point out areas that you need clarified. Feel
free to ask questions in class. Remember, “There is no such thing as a dumb
question.” Also, please make use of office hours, particularly when you need a bit more
help understanding the material.
The classroom should be a productive, pleasant, and interesting learning
environment. As a consideration to your classmates, please make an effort to be on
time. If you do arrive after the lecture has begun, a quiet entrance would be greatly
appreciated. In addition, please refrain from eating, yawning noisily, and conversing
with colleagues during class. Disrupting the class will not be tolerated.
Students with Disability
Students with disabilities who wish to set up academic adjustments in this class should
give the professor a copy of their “Confirmation of Eligibility for Academic
Adjustments” form from the Disability Support Services Office at the beginning of the
course. Appropriate accommodation will be determined. Students with disabilities
without this form should contact the Disability Support Services Office, Bouillon 205 or
dssrecept@cwu.edu or 963-2171.
The above schedule and procedures in this course are subject to change and will be
announced by the professor.