Notice - Department of Economics Web Site: The Department of Economics maintains a comprehensive web site at http://www.tulane.edu/~economic/ . This should be your first stop for all your economics inquiries. On the web site you will find information about the major, the faculty, and internet resources in economics.  Other important links are Econlit (you are able to download most papers through TU Link from Econlit) and  Economics Research Resource Guide.  The web site for this class can be accessed at http://www.tulane.edu/~msyun/ .

Course Description: This class provides an introduction to the theories and policies that have become central to the study of labor economics. By the end of this class you should have a solid understanding of many (not all!) important concepts and theories in labor market. The main emphasis will be on analytical modeling. 

Prerequisite: Economics 101 and 102. These prerequisites are taken seriously and and you are expected to have mastered the material covered in these courses .

Office Hours: TR 1:00 - 2:00 PM or by appointment. Room: Tilton Hall 310, 862-8356.   My email address is msyun@tulane.edu .

Readings: The following should be available at the Bookstores:

George J. Borjas, Labor Economics, 4th edition, Irwin McGraw-Hill, 2008.

I will follow the text closely.  However, I will lecture on some things that are not in the text. Also, for some topics, my treatment will be different than that of the text. The text should be viewed as a complement to the lectures, not a substitute. You are responsible for the material in the text, and in the lectures. I make every effort to have class attendance a necessary (though not sufficient) factor in performing well on examinations. Note that I have deliberately kept the amount of reading down. This is because I expect you to read and thoroughly understand all the material in the text.  The lecture outline below provides an approximate correspondence between lecture topics and readings. Please allocate your time efficiently throughout the semester. Though I do not require to read any additional materials due to the reasons noted above, students may obtain interesting insights by reading papers, books  and newspapers [the Wall Street Journal (http://www.wsj.com), the Economist (http://www.economist.com), the Financial Times (http://www.usa.ft.com) and the New York Times (http://www.nytimes.com )].

Online Study Guide and Exercises: An online study tools are available at http://highered.mcgraw-hill.com/sites/0073402826/student_view0/index.html.  Helpful exercises, practice quizzes and review are available there.   You should make use of this site.

Lecture Topics:

The following is a list of lecture topics. On some I will go into great detail, others I will but mention in passing.  I will follow the order below: pace your reading, studying and working on problems based on the coverage of the exams, as indicated below in the section "Examinations".

1. Introduction: This section introduces basic concepts of labor economics. 

• Chapter 1 - Introduction
• Appendix  - An Introduction to Regression Analysis
• handout - Mark Killingsworth, A Simple Introduction to Econometrics 
• Nisbet and Vakil, "Some Estimates of Price and Expenditure Elasticities of Demand for Marijuana Among U.C.L.A. Students," Review of Economics and Statistics, 1972, 473-75

2. Supply of Labor to the Economy: This section analyzes the decision of an individual to work for pay.

• Chapter 2 - Labor Supply
• handout - Mark Killingsworth, Labor Supply, chapters 1 and 2
  
• Chapter 3 - Topics in Labor Supply
• handout - Mark Killingsworth, Labor Supply, sections 5.1 and 5.2
• Robert Moffitt, "The Negative Income Tax and the Evolution of U.S. Welfare Policy," Journal of Economic Perspectives, 2003, 119-140
  

3. The Demand for Labor: This section introduces employer side of the market.

• Chapter 4 - Labor Demand
• handout - long run demand for labor from George Borjas' Labor Economics (1st edition)

4.  Labor Market Equilibrium

• Chapter 5 - Labor Market Equilbrium
  

5. Factors Affecting the Choice of Employment: This section analyzes choices concerning occupation and industry, as well as the general location of the employemnt.

• Chapter 6 - Compensating Wage Differentials
• handout - Albert Rees, Compensating Wage Differentials
  
• Chapter 7 - Human Capital
• handout - Gary Becker, Human Capital (3rd edition), Chapter 3: Investment in Human Capital
  

6. Special Topics in Labor Economics:  (if time permits)

• Chapter 9 - Labor Mobility
  
• Chapter 10 - Labor Market Discrimination
• Chapter 11 - Labor Unions
• Chapter 12 - Incentive Pay
  

Examinations: There are three examinations. The following table summarizes the time and dates.

Midterm Exam 1	Tuesday, October 9, 2007, in class	Sections 1 and 2 under lecture topics	25%
Midterm Exam 2	Thursday, November 15, 2007, in class	Sections 1, 2, 3 and 4 under lecture topics	25%
Final Exam	Tuesday, December 11, 2007, 1-4PM (3 hours)	Sections 1, 2, 3, 4 and 5 under lecture topics	50%

Note:  I reserve the right to alter this schedule during the semester. All exams are cumulative. Of course,  new material covered since the last exam (chapters in bold ) will be emphasized, but you are responsible for all the material.

Makeup Policy:  Students who simply do not show up for exams should not expect to be given a makeup.  You should present a valid documentation in order to avoid receiving zero points on the missing exam. 

There are no extra-credit assignments. There is no way to ex post improve your grade on an examination. Plan to do well on the required material.

Some Warnings, Advice and Hints:

1. If you are having problems, please seek out help early. Come in prepared, having gone over the lectures, text, and problems in the text. If you have missed any classes, make sure you have gotten the missed notes from classmates. In cases like this, it usually pays to get the notes from at least two of your class mates.
2. Some students slack off. The readings, after all, seem pretty minimal. They aren't! Labor economics is deceptive. The only way to learn it is to keep going over it, work the problems in your text, and THINK about what you are doing at each step. I suggest that you first read through the entire book. This will help you to begin to think about labor economics. Go over the lectures and think about what problems I raise and what problems are raised in the book. A good exercise is to pick up the newspaper and come up with alternative explanations of various "business" and "economic" news. Furthermore, let me urge you to read as much of the material as possible early on in the course. You will find this will help you develop a perspective on the course material and lead to a better understanding of labor economics.
3. Do not wait until after I have lectured on something to read the material work on it yourself. Come to class prepared !
4. The emphasis in this class is on developing your ability to apply analytical techniques and on your understanding of fundamental concepts. Exams will emphasize this. They will not test whether you remember what the balance of trade for the U.S. was in 1978. They will assume you have a complete understanding of the lectures, text and study guide, and will ask you to apply what you have learned to "new" circumstances.
5. The course material builds on earlier work. It is essential that you master every part of the material. I will integrate the material as we go along, but you will be ahead of the game if you make extended efforts to learn and integrate it yourself.