EMORY UNIVERSITY
Department of Economics
Economics 430
The Economics of Labor Markets
Fall 2007
Professor Carlson
This course examines the economics of labor markets. The topics to be examined include: the how a firm decides how many workers to hire; how workers decide how whether or not to enter the paid labor market; how household activities and child care effect a worker's employment and wages; the economic impact of the minimum wage or other government programs such as requiring firms to buy medical insurance for workers or install safety equipment; the effect of education on wages (e.g. does it pay to go to college?); the impact of immigration on the U.S.; the factors which determine the earnings of different groups, including blacks, women and others; the economic role of labor unions; and how wages and employment adjust during recessions and other fluctuations in demand (that is, how wages and employment respond to the business cycle).
Important : You are responsible for all assignments and announcements made in class.
Prerequisites: Economics 101 and 112 and Economics 201 (Intermediate Microeconomics).
Economics 220 (Statistics) will be helpful.
Texts:
E&S, Modern Labor Economics, 9 th
Edition , (New York: Addison-Wesley, 2006). Noted below as
E&S. The web site for the text (it contains a variety of resources) is: http://wps.aw.com/aw_ehrensmith_mlaborecon_9/0,10673,2205850-,00.html
Additional Articles on the list below can be found on reserve in Woodruff Library on e-reserve.
Grading: Grades in this course will be determined by your performance on the following assignments:
Assignment
Two hour exams:
Problem and Projects
Final:
Total
Weight %
22.5% each
25% total
30%
100%
Attendance bonus. If you miss no more than three classes in the course of the semester you will receive a 1.5% bonus on the final total.
I will give you handouts, which discuss the projects and problems as we go along. Be sure you get copies of all announcements. These will include one short paper and other projects to be discussed later.
Honor Code: The Honor Code is taken seriously in the class. It applies to all tests and homework assignments. If you have questions about the rules covering a given assignment, ASK ME .
Office: 306F Rich; Phone: 404-727-6375; e-mail : econlac@learnlink.emory.edu.
Office Hours : Mondays and Wednesdays 2:30-4:00 and by arrangement.
LearnLink: A LearnLink conference has been set up for this class. You can log into the learn link from most of the computers on campus. Be sure to check this periodically for assignments and as a chance to ask questions.

Economics 430, Spring 2007
Week Number & Date
1. January 17 - 19
2. Jan. 22 – 26
3.
Jan. 29 – Feb.2
4. Feb. 5 – 9
5. Feb. 12 –16
6. Feb.19-Feb. 23
Feb. 23, Friday
7. Feb. 26 – March 2
8. Mar. 5-9
Mar. 12-16
9. Mar. 19 – 23
10. Mar. 26 – Mar. 30
Page 2
Course Schedule & Assignments
Topics and Reading Assignments
INTRODUCTION AND OVERVIEW OF THE LABOR MARKET
E&S, ch. 1,2,
DEMAND FOR LABOR
E&S, Ch. 3, (including appendix.)
LABOR DEMAND ELASTICITIES
E&S, Ch. 4
Card and Krueger, “Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvannia, American
Economic Review , Sept. 1994, pp. 772-793.
Kennan, “The Elusive Effects of Minimum Wages,” Journal of
Economic Literature , (Dec 1995)
QUASI-FIXED COSTS AND LABOR DEMAND
E&S, Ch. 5.
INTRODUCTION TO LABOR SUPPLY
E&S, Ch. 6.
HOUSEHOLD PRODUCTION
E&S, Ch. 7.
FIRST IN-CLASS EXAM
COMPENSATING WAGE DIFFERENTIALS
E&S, Ch. 8.
Burnham and Phelan, Mean Genes , pp. 1-11; 83-104.
Smith, selection from Book I, Ch. 10, The Wealth of Nations .
INVESTMENTS IN HUMAN CAPITAL: EDUCATION
AND TRAINING
E&S, Ch. 9.
SPRING BREAK
WORKER MOBILITY: TURNOVER AND MIGRATION
E&S, Ch. 10.
Borjas, “The Economic Benefits from Immigration” Journal of
Economic Perspectives, (Spring 1995)
Card, “The Impact of the Mariel Boatlift on the Miami Labor Market,”
Industrial and Labor Relations Review , Jan 1990.
PAY AND PRODUCTIVITY
E&S, Ch. 11.

Economics 430, Spring 2007
Week Number & Date
11. April 2-6
April 6, Friday
12. April 9 – 13
13. April 16-20
14. April 23-27
15. April 30
Friday May 4 4:30-
7:00PM
Page 3
Topics and Reading Assignments
GENDER, RACE AND ETHNICITY IN THE LABOR MARKET
E&S, Ch. 12.
Carlson and Swartz, "The Earnings of Women and Ethnic Minorities,
1959-1979," Industrial and Labor Relations Review , (July 1988).
Smith and Welch, ""Race and Poverty: A Forty Year Record,"
American Economic Review , (May 1987).
Smith and Ward, "Women in the Labor Market and the Family,"
J ournal of Economic Perspectives , (Winter 1989), pp. 9-23.
Fuchs, "Women's Quest for Economic Equality, " Journal of Economic
Perspectives , (Winter 1989), pp. 25-41.
SECOND IN-CLASS EXAM
UNIONS AND WAGES
E&S, Ch. 13, Study Guide ch. 13.
Freeman and Medoff, selection from What Do Unions Do?
Freeman, "Contraction and Expansion: The Divergence of Private and
Public Unionism in the U.S.," Journal of Economic Perspectives , (Fall
1988).
I NCOME INEQUALITY AND POVERTY
E&S, Ch. 14, 15.
Gottschalk, “Inequality, Growth, and Mobility: The Basic Facts”
Journal of Economic Perspectives, (Spring 1997), p. 21-40
Ellwood, “Anti-Poverty For Families in the Next Century: From
Welfare to Work and Worries,”
Journal of Economic Perspectives,
(Winter 2000, p 187-198.
UNEMPLOYMENT
E&S, Ch. 14.
Freeman, “Are Your Wages Set in Beijing?”, Journal of Economic
Perspectives, (Summer 1995), p. 15-32
UNEMPLOYMENT
E&S, ch 15.
Blanchard and Katz, “What We Know and Do Not Know About the
Natural Rate of Unemployment,”
Journal of Economic Perspectives,
(Winter 1997 ), p. 51-72
Final Exam