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ECON 8676-001 Labor Economics 1

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ECON 8676-001 Labor Economics 1
Economics 8676- Labor Economics 1
Fall 2013
Tues/Thurs 11-12:15 ECON 5
www.colorado.edu/Economics/courses/mckinnis/econ8686
Terra McKinnish
Econ 115
[email protected]
303-492-6770
spot.colorado.edu/~mckinnis
Office Hours: Tues/Thurs 10-11 and by appt.
Course Description
This is a graduate survey course in labor economics. The first 4 weeks of class will be a
mini-course in applied econometric tools. The remaining 11 weeks of the semester will
cover 3 key topic areas in labor economics: labor supply, human capital, and economics
of the family.
A primary goal of this course is to teach you to read and understand papers beyond the
superficial “introduction and conclusion” summary. Over the course of the semester, we
will discuss approximately 20 papers in class. Using the attached schedule, you are
expected to bring a copy of the paper on the appropriate day, to have read the paper prior
to class, and to be prepared to answer questions regarding the content of the paper if
asked to do so.
There will be 3 problems sets.
The tentative schedule for the problem sets is:
PS#1- Differences-in-Differences, Panel Data, due 9/13
PS#2- Instrumental Variables, Labor Supply Due 9/27
PS#3- Measurement Error, Limited Dependent Variables, Due 10/18
In addition to a midterm (10/8) and final, students will be required to write an executive
summary of an existing paper (Due 11/15) and a research proposal (Due 12/13)
The final grades in the course will be determined by:
Midterm Exam: 25%, Final Exam: 35%, Problem Sets: 15%, Executive Summary 10%,
Proposal 15%
Reading List and Schedule
I. Applied Econometrics
8/27, 8/29- Introduction, Differences-in-Differences
Eissa, Nada and Hilary Hoynes, 2004, “Taxes and the labor market participation of
married couples: the earned income tax credit.” Journal of Public Economics
88:1931-1958.
9/3- Panel Data, Fixed-Effects
Stevenson, Betsey and Justin Wolfers. 2006. “Bargaining in the shadow of the law:
divorce laws and family distress.” Quarterly Journal of Economics 121:267-288.
9/5, 9/10- Instrumental Variables
Angrist, Joshua and Alan Krueger. 1991. “Does compulsory schooling attendance affect
schooling and earnings?” QJE 106:969-1014.
Bound, John, David Jaeger and Regina Baker. 1995. “Problems with Instrumental
Variables Estimation when the Correlation between the Instruments and the Endogenous
Explanatory Variable is Weak.” Journal of the American Statistical Association
90:443-50.
9/12, 9/17- Measurement Error, Limited Dependent Variables, Selection
II. Labor Supply
9/19, 9/24 – Intro to Static Model
9/26 - Estimation of Static Model
Gelbach, Jonah. 2002. “How Large an Effect Do Child Care Costs Have on Single
Mothers’ Labor Supply? Evidence Using Access to Free Public Schooling.”
American Economic Review 93:307-22.
10/1, 10/3- Life-Cycle Model
MaCurdy, Thomas. 1981. “An Empirical Model of Labor Supply in a Life-Cycle
Setting.” Journal of Political Economy. 89:1059-85.
Camerer, Colin, Linda Babcock, George Lowenstein and Richard Thaler. 1996. “Labor
Supply of NYC Taxi Cabdrivers: One Day at a Time.” QJE 112:407-41.
10/8 Midterm
III.
Human Capital
10/10- Human Capital Model
10/15-11/5
Evans, Bill, Craig Garthwaite and Timothy Moore. 2012. “The White/Black Educational
Gap, Stalled Progress, and the Long Term Consequences of the Crack Cocaine
Markets,” working paper.
Black, Dan and Jeffrey Smith. 2005. “How robust is the evidence on the effects of college
quality? Evidence from Matching.” Journal of Econometrics. 121:99-124.
Hoestra, Mark. 2009. “The effect of attending the flagship state university on earnings: a
Discontinuity-based approach” Review of Economics and Statistics 91(4):717-24.
Martorell, Francisco and Damon Clark. 2010. “The Signalling Value of a High School
Diploma”, working paper.
Dahl, Gordon and Lance Lochner. 2012. “The Impact of Family Income on Child
Achievement: Evidence from the Earned Income Tax Credit” AER 102(5) 1927-1956.
Dynarski, Susan, Jonathan Gruber and Danielle Li. 2009. “Cheaper by the Dozen: Sibling
Discounts at Catholic schools to estimate the price elasticity of private school
Attendance.” NBER working paper #15461.
Chetty, Raj, John Friedman and Jonah Rockoff. 2011. “The Long-term impacts of
teachers: Teacher value-added and student outcomes in adulthood.” NBER
working paper #17699.
Bedard, Kelly and Elizabeth Dhuey. 2006. “The Persistence of early childhood maturity:
International evidence of long-run age effects” Quarterly Journal of Economics
21(4), 1437-1472.
Black, Sandra, Paul Devereux and Kjell Salvanes. 2005. “Why the apple doesn’t fall far:
Understanding the intergenerational transmission of human capital.” American Economic
Review 95(1) 437-449.
III.
Economics of the Family
11/7, 11/12- Models of Household Production, Fertility and Household Bargaining
11/14 and after-
Goldin, Claudia and Lawrence Katz. 2002. “The Power of the Pill: Oral Contraceptives
and Women’s Career and Marriage Decisions.” Journal of Political Economy
González, Libertad. 2013 “The Effect of a Universal Child Benefit on Conceptions,
Abortions, and Early Maternal Labor Supply” American Economic Journal:
Economic Policy 5(3): 160-88.
Gertler, Paul, Manisha Shah and Stefano Bertozzi. “Risky Business: The Market for
Unprotected Commercial Sex.” Journal of Political Economy, June 2005.
Dahl, Gordon and Enrico Moretti. “The Demand for Sons.” Review of
Economic Studies, Oct 2008
Card, David and Gordon Dahl. 2011. “Family Violence and Football: The Effect of
Unexpected Emotional Cues on Violent Behavior.” QJE 126(1):103-143.
Chiappori, Oreffice and Quintana-Domeque. “Matching with a Handicap: The case of
smoking in the marriage market.” IZA Discussion Paper 5392, Dec 2010.
Chiappori, Oreffice and Quintana-Domeque. 2009. “Fatter Attraction: Anthropometric
and Socioeconomic Characteristics in the Marriage Market” IZA Discussion
Paper#4594. Forthcoming Journal of Political Economy.
Charles, Kerwin and Ming Luoh. 2010. “Male Incarceration, the marriage market, and
Female outcomes.” Review of Economics and Statistics. 92(3)614-27.
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