YORK UNIVERSITY
DEPARTMENT OF ECONOMICS
Winter 2013
AP/ECON3240N Labour Economics - Theory
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Instructor:
Email address:
Office:
Office hours:
Class time and location:
Course website:
Dr. Xueda Song
xsong@yorku.ca
1088 Vari Hall (VH)
10:20-11:20am on Thursdays and 1:20-2:20pm on Fridays
11:30am-2:30pm on Thursdays; ACE-001
http://moodle.yorku.ca/
Course Objectives:
It is impossible to read a newspaper or watch the evening news without encountering at least one story
about unions, layoffs, the minimum wage, or employment discrimination. Labour markets affect us in
important ways all of our lives. How they work is the topic of labour economics. This course lays out an
analytical framework for thinking about issues and policies related to labour markets.
Required Reading:
Dwayne Benjamin, Morley Gunderson, Thomas Lemieux, and Craig Riddell, Labour Market Economics,
McGraw-Hill-Ryerson, 7th edition, 2012 (BGLR). Some chapters will be covered in more detail than
others. In addition to the above textbook, we may discuss some articles related to the course material if
time permits. You will be examined on all material covered in class.
Study guide for this text with practice problems is recommended, but not required. There are some
resources for students, such as chapter summary, at the following publisher’s website:
http://highered.mcgraw-hill.com/sites/0070740208/student_view0/index.html
Course Activity:
Class sessions will introduce and review some material from the text, introduce additional material,
conduct discussions of economic issues, and go over problems and applications. Active class participation
is strongly encouraged. Students should ask questions whenever something is unclear-these questions can
help clarify issues for everyone.
Lecture slides and outlines, any additional class readings, and important announcements such as exam dates
can be accessed through http://moodle.yorku.ca/. You need to first sign in using your Passport York
username and password, and then search for the course name and section. For technical assistance, please
contact helpdesk@yorku.ca. You should print out lecture slides and outlines before each class and bring
them with you. It is required that you check our moodle course website before each class meeting for any
updates.
Students are responsible for all material and announcements made in class or posted on our course website.
In case you miss a class, it is your responsibility to get the class notes from your classmates. Regular
attendance and active class participation are required. Since coming late or leaving early disturbs other
students in the class, this should occur only in rare circumstances. Use of cell phones is not allowed in
class. Laptops or any other electronic devices should not be used in class unless they are used for taking
notes or reading slides. Students are not allowed to talk with each other during the class, which is
disturbing to other students and the instructor. If you have any questions about the class material, please
raise your questions to the instructor directly.
Examinations and Grading:
Course grades will be based on a percentage system, as follows:
Midterm Exam
In class; February 14, 2013
Final Exam
Scheduled by the University
1
40%
60%
The final exam will NOT be cumulative. No other deviations from the specifications of the above grading
arrangement are permitted.
Exams must be taken by all students at the scheduled time. There is NO make-up exam for the mid-term
exam. The weight for the midterm exam will be transferred to the final exam only if the students could
supply hard evidence of calamity that prevented them from taking the exam AND provide detailed
documentation in the manner required by the department. Please contact the Undergraduate Economics
Office (1144 Vari Hall) for the Department Guidelines for Deferred Standing on missed final exam.
Students missing exams who do not meet the above requirements will receive a grade of zero for the exam.
Practice Questions:
Practice questions taken from the textbook will be posted periodically on the moodle course web page.
Although these assignments will not be collected for grading, you are strongly recommended to work on
them. These practices are very helpful for you to understand class material and to perform well in exams.
Academic Honesty (Senate Policy):
The Policy on Academic Honesty is a reaffirmation and clarification for members of the University of the
general obligation to maintain the highest standards of academic honesty. It outlines the general
responsibility of faculty to foster acceptable standards of academic conduct and of the student to be mindful
of and abide by such standards. Students should review the York Academic Honesty policy at:
http://calendars.registrar.yorku.ca/2012-2013/policies/honesty/index.htm
FW 2012/13 Sessional Dates:
http://www.registrar.yorku.ca/enrol/dates/fw12.htm
Course Outline:

Introduction and Overview
 Part 1. Labour Supply
1. Labour supply and the allocation of time: [BGLR] chapter 2
2. Effect of income support programs on labour supply and poverty: [BGLR] chapter 3
 Part 2. Labour Demand
3. Labour demand: [BGLR] chapter 5
4. Nonwage benefits and quasi-fixed costs: [BGLR] chapter 6
 Part 3. Labour Market Equilibrium
5. Wages and employment in a single labour market: [BGLR] chapter 7
 Part 4. Wage Determination
6. Human capital theory: schooling and on-the-job training: [BGLR] chapter 9
7. The Economics of Immigration: [BGLR] chapter 11

Part 5. Unions
 Part 6. Unemployment
8. Unemployment: meaning, measurement and Canada’s experience: [BGLR] chapter 16
9. Unemployment: causes and consequences: [BGLR] chapter 17
*The above list of topics is subject to change.
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