graduate labor economics

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Department of Economics

University of Massachusetts Amherst

ECON 781: Graduate Labor Economics

Fall 2010 [Th 6:15pm-8:45pm]

Machmer Hall E-10

Instructor: Prof. Fidan Ana Kurtulus

Email: [email protected]

Office: Thompson Hall 912 (Th 3:45pm-5:45pm)

Office Phone: (413) 545-2512

The aim of this course is to acquaint Ph.D. students with several key topics in the field of labor economics

and to encourage the development of independent research interests. Prerequisites are Ph.D.-level

microeconomics and econometrics.

Assignments and Evaluation:

Every student is expected to participate actively in class by coming prepared to discuss the assigned

material (20%). Students will also be asked to present individual studies from the reading list during thesemester, which will also contribute to their class participation grade.

Students will prepare one page Reaction Memos on each of assigned readings (excluding the assigned

overview articles like those in the Handbook of Labor Economics) and will distribute them to other

members of the class and me via email at least one day before class discussion of the readings (20%).

These Memos should include an overview of the study, at least two aspects of the study you like and why,

and two aspects you dislike or could have been done better.

Students are also expected to write a 10-20 page Research Proposal for an original research project on a

labor economics topic (40%). The Research Proposal should include a clear articulation of your research

question, critical review of the previous literature related to the topic and the contribution of your project to

the literature, and a description of data and methods to be used. The goal of this exercise is to get you

started on a research paper that may turn into a chapter of your dissertation or a publishable paper. A preliminary outline is due on November 4. Students are expected to meet with me to discuss topics by that

date. The final Research Proposal is due at our last meeting on December 9, and students will give a

presentation of it to the class on that day.

Students are also strongly encouraged to attend talks related to labor economics at the Economics

Department seminar series.

Reading List:

Assigned readings are noted with an asterisk (*). However, this syllabus is a work-in-progress and some

additional assignments might be made as the semester progresses. We will not be able to cover all the

topics in the reading list; it is meant to be a resource for your future research.

Labor Economics Methods and Data Sources

*J. Angrist and A. Krueger, “Empirical Strategies in Labor Economics,” chapter 23 in

volume 3A of The Handbook of Labor Economics, 1278-1357, Sections 3 and 4.

*Abowd, John M. and Francis Kramarz “The Analysis of Labor Markets Using Matched Employer-

Employee Data”, in Orley Ashentelter and David Card (eds.), Handbook of Labor Economics, Vol 3B,

Chapter 40, pp. 2629-2710.



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U.S. Department of Labor, Bureau of Labor Statistics, How the Government Measures

Unemployment , BLS Report 505, 1977.

U.S. Department of Labor, Bureau of Labor Statistics, Concepts and Methods Used in

Labor Force Statistics from the CPS , BLS Report No. 463, Series P-20 No. 62, October

1976.

C. Romer, "Spurious Volatility in Historical Unemployment Data," Journal of Political

Economy, 94 [1], February 1986, 1-37.

A. Polivka, “Data Watch: The Redesigned Current Population Survey,” Journal of

Economic Perspectives 10 [3], Summer 1996, 169-180.

H. Farber, "What Do We Know about Job Loss in the United States? Evidence from the

Displaced Workers Survey, 1984-2004," Economic Perspectives, Federal Reserve Bank

of Chicago, 2Q, 2005.

C. Goldin, "Labor Markets in the 20th Century," NBER Historical Working Paper No. 8,

June 1994 [also in Cambridge Economic History of the US , 1-85].

Econometr ics References

Cameron, Colin and Pravin Trivedi (2008) Microeconometrics Methods and Applications, Cambridge, UK:

Cambridge University Press.

Wooldridge, Jeffrey M. (2002) Econometric Analysis of Cross Section and Panel Data, Cambridge, MA:

MIT University Press.

Wooldridge, Jeffrey M. (2006) Introductory Econometrics, Thompson South-Western Press.

Greene, William H (2000) Econometric Analysis, Prentice Hall.

Angrist, Joshua A. and Jorn-Steffen Pisckhe (2009) Mostly Harmless Econometrics, Princeton, NJ:Princeton University Press.

Labor Supply

I ndividual-L evel Models

*R.Blundell and T.MaCurdy (1999), “Labor Supply: A Review of Alternative Approaches”, Handbook of

Labor Economics, Volume 3A, Chapter 27.

J. Heckman and M. Killingsworth (1986). “Labor Supply of Women”, Handbook of Labor Economics,

Volume 1.

Pencavel, John (1986). “Labor Supply of Men: A Survey”, Handbook of Labor Economics, Volume 1.

J. Heckman and T. MaCurdy (1981) “New Methods for Estimating Labor Supply Functions: A Survey”,

Research in Labor Economics 4, 65-102.

M. Killingsworth, Labor Supply, Cambridge University Press, 1983;

Chapters 1 and 2.

Thomas Mroz (1987) “Sensitivity of an Empirical Model of Married Women‟s Hours of Work to Economic

and Statistical Assumptions”, Econometrica, 55, 4 (July): 765-799.



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M. Abbott and O. Ashenfelter, "Labor Supply, Commodity Demand and the Allocation

of Time," Review of Economic Studies, 43[3] October 1976, 389-411.

O. Ashenfelter and J. Heckman, "The Estimation of Income and Substitution Effects in a

Model of Family Labor Supply," Econometrica, 42[1], January 1974, 73-86.

O. Ashenfelter, "What is Involuntary Unemployment?," Proceedings of the American

Philosophical Society, 122[3], June 1978.

Heckman, James J., „Shadow Prices, Market Wages and Labor Supply,” Econometrica,

42[4], July 1974, 679-94.

Guido W. Imbens, Donald B. Rubin, and Bruce I. Sacerdote, “Estimating the Effect of Unearned Income on

Labor Supply: Evidence from a Survey of Lottery Players,” American Economic Review 91,4 (Sept.)

(2001).

James J. Heckman (1979) “Sample Selection Bias as a Specification Error”, Econometrica, 47, 1 (Jan.):

154-161.

*Samuel Bowles and Yonjin Park (2005) “Emulation, Inequality, and Work Hours: Was Thorsten Veblen

Right?”, Economic Journal, 115 (Nov.): F397- F412.

*Bell, L. and Freeman, R. (2001) “The incentive for working hard: explaining hours worked differences in

the US and Germany”, Labour Economics, vol. 8(2), pp. 181– 202.

Household and Famil y Models

*Becker, Gary S., 1991, A Treatise on the Family, enlarged edition. Cambridge: Harvard University Press,

Introduction, Chapters 1 and 2.

Bronars, S., and J. Grogger, "The Economic Consequences of Unwed Motherhood: Using

Twins as a Natural Experiment," American Economic Review, 84[5], December 1994,1141-1156.

Browning, M., "Children and Household Economic Behavior," Journal of Economic

Literature, 30[3], September 1992, 1434-1475.

Gronau, R., "Leisure, Home Production and Work -- The Theory of the Allocation of

Time Revisited," Journal of Political Economy, 85[6], December 1977, 1099-1124.

Gronau, R ., “Home Production -- A Survey,” Chapter 4 in O. Ashenfelter and R. Layard,

eds., The Handbook of Labor Economics, Volume 1, 1986.

Clair Brown (1985) “An Institutional Model of Wives‟ Work Decisions”, Industrial Relations (Spring).

J. Angrist and W. Evans, "Children and their Parents' Labor Supply: Evidence from

Exogenous Variation in Family Size," AER 88[3], June 1998, 450-477.

Gronau, R., "Sex-Related Wage Differentials and Women's Interrupted Careers-The

Chicken or the Egg," Journal of Labor Economics, 6[3], July 1988, 277-301.

Willis, R., "What Have We Learned from the Economics of the Family?," American

Economic Review, 77[2], May 1987, 68-81.



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Gelbach, J., “Public Schooling for Young Children and Maternal Labor Supply,”

American Economic Review, 92, March 2002, 307-322.

Kearney, M., “Is There an Effect of Incremental Welfare Benefits on Fertility Behavior?

A Look at the Family Cap,” Journal of Human Resources 39(2), 2004.

Tax and Transfer Programs

Burtless, G. and J. Hausman (1978). “The Effect of Taxes on Labor Suppy: Evaluating the Gary NIT

Experiment”, Journal of Political Economy, Vol. 6, No. 6, 1103-1130.

J. Hausman (1985) “Taxes and Labor Supply”, Handbook of Public Economics, A. Auerbach and M.

Feldstein (eds), Amsterdam: North-Holland.

R. Moffitt, “Welfare Programs and Labor Supply,” Handbook of Public Economics:

Volume 4. eds. A. Aurbach and M. Feldstein, September 2002.

Nada Eissa and Hilary Hoynes (2004) “Taxes and the Labor Market Participation of Married Couples: The

Earned Income Tax Credit”, Journal of Public Economics, 88, 9/10 (Aug.): 1931-58.

* N. Eissa and J. Leibman, “Labor Supply Response to the Earned Income Tax Credit,”

Quarterly Journal of Economics 111 (May 1996).

Killingsworth, Chapter 6.

O. Ashenfelter, "The Labor Supply Response of Wage Earners," in Palmer and Pechman,

eds., Welfare in Rural Areas, Brookings, 1978, 109-148.

Greenberg, D., and H. Halsey, "Systematic Misreporting and Effects of Income

Maintenance Experiments on Work Effort: Evidence from the SIME-DIME," Journal of

Labor Economics, 1[4], October 1983, 380-407.

O. Ashenfelter, "Determining Participation in Income-Tested Social Programs, Journal of the American Statistical Association, 78[383], September 1983, 517-525.

O. Ashenfelter and M. Plant, "Non-Parametric Estimates of the Labor Supply Effects of

Negative Income Tax Programs," Journal of Labor Economics, 8[1] Part 2, 1990, S397-

S415.

Plant, M., "An Empirical Analysis of Welfare Dependence," American Economic Review,

74[4], September 1984, 673-684.

R. Blank, „Evaluating Welfare Reform in the United States,” Journal of Economic

Literature, December 2002, 1105-66.

R. Blundell, A. Duncan, and C. Meghir, “Estimating Labor Supply Responses Using TaxReforms,” Econometrica 66 (1998), 827-861.

D. Card and D. Hyslop, “Estimating the Effects of a Time-Limited Earnings Subsidy For

Welfare-Leavers,” Econometrica 73 (November 2005), 1723-1770.

The L if e-Cycle Model

Lucas, R.E., and L. Rapping, “Real Wages, Employment, and Inflation,” Journal of

Political Economy, 77[5], September-October 1969, 721-764.



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G. Becker and G. Ghez, The Allocation of Time and Goods Over the Life-Cycle,

Columbia University Press, 1975.

T. MaCurdy, "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of

Political Economy, 89[6], December 1981, 1059-1085.

J. Altonji, "Intertemporal Substitution in Labor Supply: Evidence from Micro Data,

Journal of Political Economy, 94[3] Part 2, June 1986, S176-S215.

Browning, Deaton and Irish, "A Profitable Approach to Labor Supply and Commodity

Demand Over the Life-Cycle," Econometrica, 53[3], May 1985, 503-543.

O. Ashenfelter, "Macroeconomic and Microeconomic Analyses of Labor Supply,”

Carnegie-Rochester Conference on Public Policy, 21, 1984, 117-156.

J. Angrist, "Grouped-Data Estimation and Testing in Simple Labor Supply Models,"

Journal of Econometrics, 47[2], 1991, 243-266.

D. Card, "Intertemporal Labor Supply: An Assessment," in C. Sims, ed., Advances inEconometrics Sixth World Congress, vol. II, Cambridge University Press, 1994, 49-78.

P.J. Devereux. “Small Sample Bias in Synthetic Cohort Models of Labor Supply,”

forthcoming in The Journal of Applied Econometrics 2007, 839-848.

C. Camerer, L. Babcock, G. Lowenstein, and R. Thaler, “Labor Supply of New York City

Cabdrivers: One Day at a Time,” QJE 112 (1997), 407-441.

Oettinger, Gerald S., “An Empirical Analysis of the Daily Labor Supply of Stadium

Vendors,” Journal of Political Economy, 107[2], April 1999, 360-92.

H. Farber, “Is Tomorrow Another Day? The Labor Supply of New York City Cab

Drivers,” JPE , February 2005.

E. Fehr and Goette, “Do Workers Work More if Wages are High? Evidence from a

Randomized Field Experiment,” American Economic Review, March 2007.

H. Farber, “Reference-Dependent Preferences and Labor Supply: The Case of New York

City Taxi Drivers,” The American Economic Review 98 (2008), 1069-1082.

Labor Demand

*D. Hamermesh (1993), Labor Demand , Princeton, NJ: Princeton University Press, Chapters 2-3,18-136.

D. Hamermesh, “The Demand for Labor in the Long Run,” Chapter 8 in O. Ashenfelter

and R. Layard [eds.] Handbook of Labor Economics, Volume 1, 1986.

D. Card, “Unexpected Inflation, Real Wages, and Employment Determination in Union

Contracts,” American Economic Review, September 1990, 669-88.

James B. Rebitzer (1993) “Radical Political Economy and the Economics of Labor Markets” Journal of

Economic Literature, 31, 3 (Sept.): 1394-1434.

S. Nickell, “Dynamic Models of Labour Demand,” Chapter 9 in O. Ashenfelter and R.

Layard [eds.] Handbook of Labor Economics, Volume 1, 1986.



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Walter Oi (1962) “Labor as a Quasi-Fixed Factor”, Journal of Political Economy, 70, 6: 538-555.

J. Angrist, "Short-Run Demand for Palestinian Labor," Journal of Labor Economics, July

1996.

H. Varian, Microeconomic Analysis [third edition], New York: Norton, 1992.

*Card, David and Alan Krueger (1994) “Minimum Wages and Employment: A Case Study of the Fast-Food

Industry in New Jersey and Pennsylvania”, American Economic Review, 84, 4 (Sept.): 772-793.

Hamermesh, Daniel S. and Stephen J. Trejo (2000) “The Demand for Hours of Labor: Direct Evidence

from California”, Review of Economics and Statistics, 82, 1 (Feb.): 38-47.

D. Card, „The Impact of the Mariel Boatlift on the Miami Labor Market.‟ Industrial and

Labor Relations Review, vol.43, (January 1990), pp. 245--257.

D. Card (2001) “Immigrant Inflows, Native Outflows, and the Labor Market Impacts of higher

Immigration”, Journal of Labor Economics, 19, 1: 22-64.

Education, Human Capital and Training

*G. Becker, Human Capital , 3rd Edition, Chicago: University of Chicago press, 1993. Chapters I, II, III,

and IV.

*M. Spence (1973) “Job Market Signalling”, Quarterly Journal of Economics (August).

J. Mincer, Schooling, Experience, and Earnings, New York: NBER, 1974.

R.J. Willis, "Wage Determinants: A Survey," in The Handbook of Labor Economics, ed. By O. Ashenfelter

and R. Layard. Amsterdam: North Holland. Pp. 525-602.

*Samuel Bowles and Herbert Gintis (1975) “The Problem with Human Capital Theory-A MarxianCritique”, American Economic Review, 65,2:74-82.

*Samuel Bowles, Herbert Gintis, and Melissa Osborne (2001) “The Determinants of Earnings: A

Behavioral Approach”, Journal of Economic Literature, 39 (Dec.): 1137-76.

*O. Ashenfelter and A. Krueger (1994) “Estimates of the Economic Returns to Schooling from a New

Sample of Twins”, American Economic Review, 84 (December): 1157-73.

*Angrist, J.D. and A. Krueger, "Does Compulsory Schooling Attendance Affect Schooling and Earnings?"

Quarterly Journal of Economics, 106[4], Nov 1991, 979-1014.

D. Card (1995) “Using Geographic Variation in College Proximity to Estimate the Return to Schooling” in

Aspects of Labour Market Behaviour: Essays in Honour of John Vanderkamp, edited by Louis N.Christofides, Kenneth E. Grant, and Roert Swidinsky, University of Toronto Press, pp. 201-22.

Butcher, Kristen and Anne Case (1994) “The Effects of Sibling Composition on Women‟s Education and

Earnings”, Quarterly Journal of Economics 109, no. 3 (August), pp. 531-63.

*D. Card, "Earnings, Schooling, and Ability Revisited," in: S. Polachek, ed. Research in

Labor Economics, 14, 1995, 23-48.

*D. Card and A. Krueger, “Does School Quality Matter? Returns to Education and the



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Characteristics of Public Schools in the United States,” Journal of Political Economy

100, February 1992.

D. Card, “The Causal Effect of Education on Earnings,” chapter in The Handbook of

Labor Economics, Volume 3A, 1999.

“Symposium on Primary and Secondary Education” , Journal of Economic Perspectives (Fall 1996) articles by David Card and Alan Krueger and by Eric Hanushek.

*P. Carneiro and J.J. Heckman (2002) “The Evidence on Credit Constraint in Post-Secondary Schooling”,

Economic Journal (October), 705-734.

*D. Acemoglu and J. Pischke. (1998) AWhy Do Firms Train? Theory and Evidence.@ Quarterly Journal

of Economics, Vol. 113.1 (February), 79-119.

*D. Acemoglu and J.S. Pischke. (1999) Beyond Becker: Training in Imperfect Labor Markets, Economic

Journal , 109.453 (February), 112-42.

*D. Acemoglu and J.S. Pischke (1999) “The Structure of Wages and Investment in General Training”,

Journal of Political Economy (June), 539-572.

R. Freeman, "Overinvestment in College Training," Journal of Human Resources,

Summer 1975, 10[3], 287-311.

R.J. Willis, and Sherwin Rosen, "Education and Self-Selection," Journal of Political

Economy, 87[5] Part 2, Oct 1979: S7-S36.

R. Freeman, “Demand for Education,” Chapter 6 in The Handbook of Labor Economics,

Volume 1, 1986.

Griliches and Mason, "Education, Income and Ability," Journal of Political Economy,

80[3], May-June 1972 Part 2, S74-S103.

J. Angrist, "The Economic Returns to Schooling in the West Bank and Gaza Strip,"

American Economic Review, 85[5], Dec 1995, 1065-1087.

Returns to schooling econometrics

Z. Griliches, “Estimating the Returns to Schooling: Some Econometric Problems,”

Econometrica, January 1977.

P. Oreopoulos, “Estimating Average and Local Average Treatment Effects of Education

when Compulsory Schooling Laws really Matter,” American Economic Review 96(1),

March 2006, pp. 152-175.

Retur ns to exper ience

J. Altonji and R. Shakotko, “Do Wages Rise with Job Seniority?,” Review of Economic

Studies, July 1987.

J. Angrist, "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social

Security Administrative Records," American Economic Review, 80[3], June 1990, 313-

336.



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Katherine Abraham and James Medoff (1981) “Are Those Paid More Really More Productive? The Case of

Experience”, Journal of Human Resources, Spring, pp. 186-216.

Evaluation of T raining Programs

J. Heckman and A. Krueger, Inequality in America: What Role for Human Capital

Policies?, Cambridge, MA: The MIT Press, 2003.

Ashenfelter, O.A, "Estimating the Effect of Training Programs on Earnings," The Review

of Economics and Statistics, 60[1], Feb 1978, 47-57.

Ashenfelter, O.A. and D. Card, "Using the Longitudinal Structure of Earnings to Estimate

the Effect of Training Programs on Earnings," The Review of Economics and Statistics,

67 [4], November 1985, 648-660.

Card, D. and D. Sullivan, "Measuring the Effect of Subsidized Training on Movements In

and Out of Employment," Econometrica, 56[3], May 1988, 497-530.

LaLonde, R., "Evaluating the Econometric Evaluations of Training Programs with

Experimental Data," American Economic Review, 76 [4], September 1986, 604-620.

Heckman, J.J., and J.V. Hotz, "Choosing Among Alternative Nonexperimental Methods

for Estimating the Impact of Social programs: The Case of Manpower Training," JASA,

84[408], December 1989, 862-880.

R. Dehejia and S. Wahba, “Causal Effects in Non-experimental Studies: Re-evaluating

the Evaluation of Training Programs,” JASA, 94[448], December 1999, 1053-62.

Orr, Larry L., H.S. Bloom, S.H. Bell, F. Doolittle, W. Lin, and G. Cave, Does Training

for the Disadvantaged Work?, Washington, DC: The Urban Institute, 1996.

J. Smith and P. Todd, “Reconciling Conflicting Evidence on the Performance of

Propensity Score Matching Methods,” American Economic Review 91 (May 2001).

J. Smith and P. Todd, “Does Matching Overcome Lalonde‟s Critique of Nonexperimental

Estimators?,” J. Econometrics 125 (March-April 2005), 305-353.

Angrist, Joshua D., “Estimating the Labor Market Impact of Voluntary Military Service

Using Social Security Data on Military Applicants,” Econometrica, March 1998.

C. School Inputs, Peer Effects, and Incentives

J. Angrist and V. Lavy, "Using Maimonides' Rule to Estimate the Effect of Class Size on

Student Achievement," Quarterly Journal of Economics, May 1999.

A. Krueger, „Experimental Estimates of Education Production Functions,” QJE , May1999.

J. Angrist and J. Guryan, “Does Teacher Testing Raise Teacher Quality? Evidence from

State Certification Requirements,” Economics of Education Review, October 2008.

J. Angrist, E. Bettinger, E. Bloom, E. King., M. Kremer, “Vouchers for Private Schooling

in Colombia: Evidence from a Randomized Natural Experiment,” American Economic

Review, December 2002.



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E. Duflo, “Schooling and Labor Market Consequences of School Construction in

Indonesia: Evidence from an Unusual Policy Experiment,” AER 2001, 795-813.

Peer Ef fects

J. Angrist and D. Acemoglu, “How Large are the Social Returns to Education? Evidence

From Compulsory Attendance Laws ,” NBER Macro Annual 15, 2000.

J. Angrist and K. Lang, “Does School Integration Generate Peer Effects? Evidence from

Boston‟s Metco Program,” AER, December 2004.

E. Gould, V. Lavy, M.D. Paserman, “Does Immigration Affect the Long-Term

Educational Outcomes of Natives? Quasi-Experimental Evidence,” Hebrew University

Department of Economics, mimeo, July 2008.

V. Lavy, and A. Schlosser, “Mechanisms and Impacts of Gender Peer Effects at School,”

NBER Working Paper 13292, September 2007.

E. Duflo, P. Dupas, and M. Kremer, “Peer Effects and the Impact of Tracking,” MIT

mimeo, June 2008.

I ncenti ves

J. Angrist and V. Lavy, “The Effect of High School Matriculation Awards: Evidence

from Randomized Trials,‟ AER, 2009.

J. Angrist and P. Oreopoulos, “Incentives and Services for College Achievement:

Evidence from a Randomized Trial,” American Economic Journal: Applied Economics,

2009.

M. Kremer, E. Miguel, and R. Thornton, “Incentives to Learn,” forthcoming in The

Review of Economics and Statistics.

Discrimination and Demographic Differentials

Theories of discrimi nation

* Gary S. Becker, The Economics of Discrimination, 2nd edition, University of Chicago Press, Chicago,

1971.

K. Arrow (1973) “The Theory of Discrimination”, in O. Ashenfelter and A. Rees, eds., Discrimination in

the Labor Markets, Princeton University Press, pp. 3-33.

*Dennis J. Aigner and Glen G. Cain, "Statistical Theories of Discrimination in the Labor Market,"

Industrial and Labor Relations Review, April 1977, pp. 175-87.

S. Lundberg, and R. Startz (1983) “Private Discrimination and Social Intervention in Competitive Labor

Markets” American Economic Review (June).

*J.G. Altonji, and R.M. Blank (1999) “Race and Gender in the Labor Market” in O. Ashenfelter and D.

Card (eds.), Handbook of Labor Economics, Volume 3C, Chapter 48, Amsterdam: North Holland, 1999,

pp. 3143-3260.

D.A. Black (1995) “Discrimination in an Equilibrium Search Model”, Journal of Labor Economics 13, no.2

(April), 309-34.



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Becker, Treatise on the Family, Supplement to Ch. 2: "Human Capital, Effort, and the Sexual Division of

Labor," 54-79.

Heidi I. Hartmann, "Capitalism, Patriarchy, and Job Segregation by Sex," Signs: Journal of Women in

Culture and Society, Vol. 1, No. 2, pt. 2, Spring 1976, 137-70.

William A. Darity, Jr and Rhonda M. Williams, "Peddlers Forever? Culture, Competition, and

Discrimination," American Economic Review. Vol. 75 No. 2, May 1985, pp. 256-61.

Michael Reich, Racial Inequality, Princeton University Press, 1981.

Barbara Bergmann, "The Effect on White Incomes of Discrimination in Employment," Journal of Political

Economy, March/April 1971.

Empir ical work on gender dif ferentials

*Claudia Goldin and Cecilia Rouse, "Orchestrating Impartiality: The Impact of "Blind" Auditions on

Female Musicians," AER, Sept. 2000, 715-741.

*Francine Blau and Lawrence M. Kahn (2000) “Gender Differences in Pay”, Journal of Economic

Perspectives, 14 (Fall): 75-99.

*Francine Blau and Marianne Ferber (1987) “Discrimination: Empirical Evidence from the United States”,

American Economic Review (may): 316-320.

Judith K. Hellerstein, David Neumark, and Kenneth R. Troske (1990) “Wages, Productivity, and Worker

Characteristics: Evidence from Plant-Level Production Functions and Wage Equations”, Journal of Labor

Economics 17,2(July): 409-46.

*David Neumark, with assistance of Roy J. Blank and Kyle D. Van Nort (1996) “Sex Discrimination in

Restaurant Hiring: An Audit Study”, Quarterly Journal of Economics (August): 915-42.

M. V. Lee Badgett, "The Wage Effects of Sexual Orientation Discrimination," Industrial and Labor

Relations Review, Vol. 48, No. 4, 1995, 726-739.

Blau, Francine D., Lawrence M. Kahn (1997) “Swimming Upstream: Trends in Gender and Wage

Differentials in the 1980s”, Journal of Labor Economics, 15,1 (Jan.): 1-42.

Doris Weichselbaumer, “Is It Sex or Personality? The Impact of Sex Stereotypes on Discrimination in

Applicant Selection” Eastern Economic Journal , Spring 2004, v. 30, iss. 2, pp. 159-86

Importing Equality? The Impact of Globalization on Gender Discrimination ; By Black, Sandra E.;

Brainerd, Elizabeth; Industrial and Labor Relations Review, July 2004, v. 57, iss. 4, pp. 540-59

Francine Blau, “Trends in the Well-Being of American Women, 1970-95,” Journal of Economic Literature,March 1998.

Joni Hersch and Leslie S. Stratton, "Housework, Fixed Effects, and Wages of Married Workers," Journal of

Human Resources, Vol. 32, No. 2, 1997, 285-307.

David Neumark and Michele McLennan, "Sex Discrimination and Women's Labor Market Outcomes,"

Journal of Human Resources. Vol. 30, No. 4. Fall 1995, pp. 713-40.



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Erica L. Groshen, "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You

Do, or Where You Work?" Journal of Human Resources, Summer 1991, pp. 457-72.

C. Mulligan and Y. Rubinstein, “Selection, Investment, and Women‟s Relative Wages

Over Time,” The Quarterly Journal of Economics 123 (2008).

Jacob Mincer and Solomon Polachek, "Family Investments in Human Capital: Earnings of Women," Journal of Political Economy, Vol. 82, No. 2, pt. 2, 1974, pp. S76-S108.

Robert G. Wood, Mary E. Corcoran, and Paul N. Courant, "Pay Differences Among the Highly Paid: The

Male-Female Earnings Gap in Lawyers' Salaries," Journal of Labor Economics, Vol. 11, No. 3, 1993, pp.

417-441.

June O'Neill and Solomon Polachek, "Why the Gender Gap in Wages Narrowed in the 1980s," Journal of

Labor Economics, Vol. 11, No. 1, pt. 1, 1993, pp. 205-228.

David E. Bloom and Mark R. Killingsworth, "Pay Discrimination Research and Litigation: The Use of

Regression," Industrial Relations, Vol. 21, No. 3, Fall 1982, 318-339.

*Waldfogel, Jane (1998) “The Family Gap for Young Women in the United States and Britain: CanMaternity Leave Make a Difference?”, Journal of Labor Economics 16:505-45.

Bertrand, Marianne, and Kevin F. Hallock (2001) “The Gender Gap in Top Corporate Jobs”, Industri al and

Labor Relations Review 55 (October): 3-21.

Goldin, Claudia (1997) “Exploring the Present Through the Past: Career and Family Across the Last

Century”, American Economic Review 87 (May): 396-99.

*Goldin, Claudia and Lawrence Katz (2000) “Career and marriage in the Age of the Pill”, American

Economic Review 90,2 (May):461-75.

Hamermesh, Daniel and Jeffrey Biddle (1994) “Beauty and the Labor Market”, American Economic

Review 84 (December):416-94.

Empiri cal work on race dif ferentials

*Marianne Bertr and and Sendhil Mullainathan, “Are Emily and Greg More Employable than Lakisha and

Jamal? A Field Experiment on Labor Market Discrimination.” American Economic Review, September

2004, v. 94, iss. 4, pp. 991-1013.

*Neal, Derek and William R. Johnson (1996) “The Role of Pre-Market Factors in the Black/White Wage

Gap”, Journal of Political Economy (October).

*Chinhui Juhn; Murphy, Kevin M. "Wage Inequality and Family Labor Supply ," Journal of Labor

Economics. Vol. 15 (1). p 72-97. Part 1 January 1997.

Heckman, James J., Thomas M. Lyons, and Petra E. Todd (2000) “Understanding Black -White Wage

Differentials, 1960-1990”, American Economic Review 90,2 (May):344-9.

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Donald Deere, Kevin M. Murphy, and Finis Welch (1995) “Employment and the 1990-1991 Minimum-Wage Hike”, American Economic Review, 85, 2 (May): 232-37.

J. Kennan, "The Elusive Effects of Minimum Wages," Journal of Economic Literature ,

33[4], December 1995, 1949-1965.

R. Dickens, S. Machin and A. Manning, "The Effects of Minimum Wages on

Employment: Theory and Evidence From Britain", Journal of Labor Economics, 17[1],

January 1999, 1-22.

Manning, Alan, Monopsony in Motion: Imperfect Competition in Labor Markets,

Princeton University Press, 2003.

Unions

R. Freeman and J. Medoff, What Do Unions Do?, Basic Books, 1985.

H. Gregg Lewis, Union Relative Wage Effects: A Survey, Chicago: University of Chicago

Press, 1986.

*Farber, Henry. "The Analysis of Union Behavior," In Orley Ashenfelter and Richard

Layard (eds), The Handbook of Labor Economics, Volume II, 1986.

J.N. Brown and O.C. Ashenfelter, “Testing the Efficiency of Employment Contracts,”

Journal of Political Economy 1986, S40-S87.

*G. Jakubson, “Estimation and Testing of the Union Wage Effect Using Panel Data,”

Review of Economic Studies, 1991, 971-91.

J. DiNardo and D.S. Lee, “Economic Impacts of New Unionization on US Private Sector

Employers: 1984-2001,” QJE 119 (2004), 1383-1442.

*A. Krueger and A. Mas, “Strikes, Scabs, and Tread Separations: Labor Strife and the

Production of Defective Bridgestone/Firestone Tires,” JPE , April 2004.



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Stephen Nickell and Richard Layard (1999) “Labor Market Institutions and Economic Performance”, in

Orley Ashenfelter and David Card (eds.), Handbook of Labor Economics, Vol. 3A, Chapter 46, pp. 3029-

2074.

Abowd, John M. (1989) “The Effect of Wage Bargains on the Stock Market Value of the Firm”, American

Economic Review, 79, 4 (Sept.):774-800.

Abowd, John M. and Thomas Lemieux (1993) “The Effects of Product Market Competition on Collective

Bargaining Agreements: The Case of Foreign Competition in Canada”, Quarterly Journal of Economics

(Nov.): 983-1014.

Bertola, Guiseppe, Francine D. Blau, and Lawrence M. Kahn (2002), “Labor Market Institutions and

Demographic Employment Patterns”

Card, David (1986) “Efficient Contracts and Costs of Adjustment: Short-run Employment Determination

for Airline Mechanics”, American Economic Review, 76 (Dec.):10466-71.

Cramton, Peter and Jospeh S. Tracy (1993) “Strikes and Delays in Wage Bargaining: Theory and Data”,

American Economic Review.

Gould, John P.(1973) “The Economics of Legal Conflicts”, Journal of Legal Studies, 2 (June): 279-300.

Grout, P.A. (1984) “Investment and Wages in the Absence of Legally Binding Labour Contracts”,

Econometrica, 52: 449-60.

Kennan, John and Robert Wilson (1990) “Strategic Bargaining Models and Interpretation of Strike Data”,

Journal of Applied Econometrics.

Leontif, Wassily W. (1946) “The Pure Theory of the Guaranteed Annual Wage Contract”, Journal of

Political Economy, 54 (Feb.): 76-9.

Manning, Alan (1987) “An Integration of Trade Union Models in a Sequential Bargaining Framework”,

Economic Journal, 97 (March): 121-139.

Tracy, Joseph S. (1987) “An Empirical Test of an Asymmetric Information Model of Strikes”, Journal of

Labor Economics, 5 (April): 149-73.

Immigration

J. Altonji and D. Card, "The Effects of Immigration on the Labor Market Outcomes of

Less-Skilled Natives," in J. Abowd and R. Freeman, eds., Immigration, Trade, and the

Labor Market, University of Chicago Press, 1991, 201-234.

*D. Card, „The Impact of the Mariel Boatlift on the Miami Labor Market.‟ Industrial and

Labor Relations Review, vol.43, (January 1990), pp. 245--257.

*Chiswick, Barry R (1978) “The Effect of Americanization on the Earnings of Foreign- born Men”, Journalof Political Economy (Oct.): 897-921.

*Borjas, George J. (1987) “Self -Selection and the Earnings of Immigrants”, American Economic Review

(Sept.): 531-553.

Borjas, George J. (1995) “Assimilation and Changes in Cohort Quality Revisited: What Happened to

Immigrant Earnings in the 1980s?”, Journal of Labor Economics (April): 201-245.



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D. Card (2001) “Immigrant Inflows, Native Outflows, and the Labor Market Impacts of higher

Immigration”, Journal of Labor Economics, 19, 1: 22-64.

Baker, Michael and Dwayne Benjamin (1997), “The Role of the Family in Immigrants‟ Labor -Market

Activity: An Evaluation of Alternative Explanations”, American Economic Review, 87 (Sept.): 705-727.

Blau, Francine D., Lawrence M. Kahn, Joan Moriarty, and Andre Souza (2003) “The Role of the Family inImmigrants‟ Labor -Market Activity: An Evaluation of Alternative Explanations: Comment”, American

Economic Review, 93 (March): 429-447.

Pischke, Jorn-Steffen, and Johannes Velling, “Employment Effects of Immigration to

Germany: An Analysis Based on Local Labor Markets,” The Review of Economics and

Statistics 79 (Nov. 1997), 594-604.

J. Angrist and A. Kugler, “Protective or Counter -Productive? Labor Market Institutions

and the Effect of Immigration on EU Natives,” The Economic Journal , June 2003.

*G. Borjas, “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of

Immigration on the Labor Market,” QJE November 2003.

P. Cortes, “The Effect of Low-Skilled Immigration on US Prices: Evidence from CPI

Data,” JPE 2008, 381-422.

A. Kugler and M. Yuksel, “Effects of Low-Skilled Immigration on US Natives: Evidence

from Hurricane Mitch,” University of Houston Economics Dept mimeo, August 2008.

C.L. Smith, “Dude, Where‟s my Job? The Impact of Immigration on the Youth Labor

Market,“ Chapter 1 in MIT Ph.D. thesis, September 2008.

Efficiency Wages

Theory

*J. Yellen (1984) “Efficiency Wage Models of Unemployment”, American Economic Review, Vol. 74

(May), 200-205.

*G. Akerlof (1982) “Gift Exchange and Efficiency Wage Theory”, Quarterly Journal of Economics, Vol. 97

(November), 543-569.

Karl Marx, Capital , Vol. 1, Ch. 6: "The Sale and Purchase of Labour-Power;" and Ch. 7: "The Labour

Process and the Valorization Process."

* Samuel Bowles, "The Production Process in a Competitive Economy: Walrasian, Neo-Hobbesian, and

Marxian Models," American Economic Review, Vol. 75, No. 1, March 1985, 16-36.

* George Akerlof and Janet Yellen, "Fair Wage Effort Hypothesis and Unemployment," Quarterly Journal of Economics, Vol. 105, May 1990, 255-284.

* Edward Lazear, “Performance Pay and Productivity,” AER, Vol. 90, Dec 2000, 1346-1361.

Carl Shapiro and Joseph E. Stiglitz, "Equilibrium Unemployment as a Worker Discipline Device,"

American Economic Review, Vol. 74, 1984, pp. 433-44.

George A. Akerlof, "Labor Contracts as Partial Gift Exchange," Quarterly Journal of Economics, Vol. 97,

November 1982, pp. 543-69.



Andrew Weiss, "Job Queues and Layoffs in Labor Markets with Flexible Wages," Journal of Political

Economy, Vol. 88, June 1980, pp. 526-38.

Magnus Allgulin and Tore Ellingsen, “Monitoring and Pay,” Journal of Labor Economics, Part 1 April

2002, v. 20, iss. 2, pp. 201-16.

Empir ical Tests

* Ernest Fehr, Erich Kirchler, Andreas Weichbold, and Simon Gachter , “When Social Norms Overpower

Competition: Gift Exchange in Experimental Labor Markets,” Journal of Labor Economics, Vol. 16, No.

2, 1998, 324-351.

* Peter Cappelli and Keith Chauvin, “An Interplant Test of the Efficiency Wage Hypothesis,” Quarterly

Journal of Economics, Vol. 106, No. 3, August 1991, pp. 769-87.

* Alan B. Krueger and Lawrence H. Summers, “Efficiency Wages and the Inter -Industry Wage Structure,”

Econometrica, Vol. 56, No. 2, March 1988, pp. 259-93.

* David M. Gordon, “Who Bosses Whom?: The Intensity of Supervision and the Discipline of Labor,” American Economic Review, Vol. 80, No. 2, May 1990, pp. 28-32.

David I. Levine, “What Do Wages Really Buy?” Proceedings of IRRA, 19xx.

Erica L. Groshen and Alan B. Krueger, “The Structure of Supervision and Pay in Hospitals,” Industrial and

Labor Relations Review, Vol. 43, No. 3, Feb. 1990, pp. S134-46.

Jonathan S. Leonard, “Carrots and Sticks: Pay, Supervision, and Turnover,” Journal of Labor Economics,

Vol. 5, No. 4, Part 2, October 1987, pp. S136-52.

Harry Holzer, “Wages, Employer Costs, and Employee Performance in the Firm, “ Industrial and Labor

Relations Review, Vol. 43, February 1990, pp. S147-64.

William T. Dickens and Lawrence F. Katz, “Inter -Industry Wage Differences and Industry Char acteristics,”

in Unemployment and the Structure of Labor Markets, eds. Kevin Lang and Jonathan S. Leonard, Basil

Blackwell, New York, 1987, pp. 48-89.

Charles Brown and James Medoff, “The Employer Size-Wage Effect,” Journal of Political Economy, Vol.

97, No. 5, Oct. 1989, pp. 1027-59.

James B. Rebitzer and Michael D. Robinson, “Employer Size and Dual Labor Markets,” Review of

Economics and Statistics, Vol. 73, No. 4, November 1991, pp. 710-715.

James B. Rebitzer, “Establishment Size and Job Tenure,” Industrial Relations, Vol. 25, No. 3, Fall 1986,

pp. 292-302.

Francis Green and Thomas E. Weisskopf, “The Worker Discipline Effect: A Disaggregative Analysis,”

Review of Economics and Statistics, May 1990, Vol. 72, No. 2, pp. 24-49.

Erica L. Groshen, “Five Reasons Why Wages Vary Among Employers,” Industrial Relations, Vol. 30, No.

3, Fall 1991, 350-381.

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