Eco 344h5: Labour Economics and Market Frictions

ECO344H5: Labour Economics and Market Frictions

Th, 1:10am-3:00pm, IB 140

Winter term, 2017

Instructor: Laura Turner

Email: lmf.turner@utoronto.ca

Office hours: 3:15-5:30pm, Th, Rm. 3262 Innovation Complex

(Office hours will be moved to Monday at the same time in Weeks 6 and 10)

RECCOMENDED COURSE READINGS:

Benjamin, Gunderson, Lemieux, Riddell. Labour Market Economics, 7h Edition

PREREQUESITES:

ECO200Y5/204Y5/206Y5, 220Y5/227Y5/STA(250H1,257H5)/STA(257H5,261H5)/STA(257H5,248H5/258H5)

Prerequesites are strictly enforced. Students who do not meet prerequsites can be removed at any time.

SCHEDULE OF CLASSES AND READINGS:

Week 1 – Jan 5 2017

Course introduction: review of Labor supply in competitive labor markets

Week 2 – January 12, 2017

Review of labor demand in competitive labor markets.

Week 3 – January 19, 2017

Union wage setting I

Week 4 – January 26, 2017

Union wage setting II

Week 5 – February 2, 2017

Wages and employment under monopsony

Week 6 – February 9, 2017

In class test #1 on unions and monopsony; Introduction to unemployment

STUDY BREAK

Week 7 – February 23, 2017

Unemployment, wages and job search

Week 8– March 2, 2017

Search and non- search theories of unemployment

Week 9 – March 9, 2017

Unemployment, wages and wage dispersion

Week 10– March 16, 2017

In class test #2 on unemployment; Introduction to dynamic labor supply

Week 11– March 23, 2017

Term essay drafts due for feedback; Life cycle labor supply I: Income and substitution effects

Week 12– March 30, 2017

Life cycle labor supply II: Human capital; essay drafts returned.

Week 13 – April 5, 2017

No class; Term essay due online

APRIL 6-22: FINAL EXAM, DATE TBA

GRADING

In class tests (best one of two): 35% + 1% (2%) bonus for scoring at least 40% (60%) on both

Term essay: 30%

Final exam: 35%

A hard draft of the term essay may be handed in two weeks in advance of the due date (by 5:30pm on March 23) for feedback on the writing and quality of the economic argument. Drafts, annotated with feedback, will be returned in class the following week. Late essays (essays submitted after midnight on April 5, 2016) will be penalized at a rate of 4% per day, including weekends. Final essays must be submitted through Turnitin (see below). Late essays can be submitted electronically at any time.