Graduate Labour Sequence, 2008-2009

Overview and Background

The conventional package of graduate labour courses has been ECO 2800 (“Labour Economics I”) and ECO 2801 (“Labour Economics II”). The division of topics across the two courses has varied with the combination of instructors, but the main objectives have remained constant: (1) Coverage of the core subject matter in labour economics (Theoretical and empirical analysis of labour markets, including labour supply and demand; human capital and earnings), as well as special topics (economics of education; immigration; economics of marriage and the family).

We have always recognized, however, that the sequence could benefit from a third course devoted to empirical methods. Such a course would also complement other applied micro fields, especially development and public economics, where there is significant overlap in methods (and increasingly subject matter).

Ideally, for 2008-09 we would offer a three-course sequence (ECO 2800, ECO 2801, and the as yet un-numbered, “ECO 2803” empirical methods course). However, because of a shortage of faculty this year, we are unable to offer the three-course sequence, or even the conventional two-course sequence. Instead, the two courses that will be offered are:

1) ECO 2800 (Labour I): This will be a conventional introductory course in labour economics at the graduate level. It will be suitable for both MA and PhD students.

2) ECO 2801 (Labour II): This will be a new course in empirical methods for applied microeconomics. It will be aimed primarily at PhD students planning research in applied micro fields, including labour.

The labour sequence of courses (major and minor) will therefore be ECO 2800S + ECO 2801S. Due to scheduling constraints, both courses will be offered in the “spring” semester. We hope to offer the full three course sequence in future years.

Detailed Course Descriptions

ECO2800: Labour Economics 1

ECO2800 is a core course in labour economics. It is designed specifically to be suitable for both MA and PhD. students. PhD students wishing to complete the comprehensive exam in labour economics will need to complete the second course (ECO 2801) that is aimed at PhD students. The objective of ECO2800 is to demonstrate how the tools of microeconomic theory can be applied to labour economic decisions, and how the resulting theoretical insights can inform the evaluation of public policy. The topics covered will include the decision to work, the decision to attend school and other human capital investments, labour market discrimination and immigration. Applications will include public policies addressing poverty, pay equity, labour market policies that affect child development, immigrant selection mechanisms and tuition and associated policies in the educational sector.

ECO 2801: Labour Economics II (Methods for Empirical Microeconomics)

While it has a labour course number, this is not purely a labour economics course: it is a course in empirical modeling and applied econometrics. The tools covered in the course, however, are central to those used in empirical labour economics, as well as other applied microeconomics fields like development and public economics. The focus will be the identification of causal relationships using regression-based analysis. Likely topics to be covered include: Experimental design and program evaluation; Instrumental variables; Panel data, fixed effects, difference-in-differences, and related strategies; and regression discontinuity. Empirical examples will be drawn from recent work in labour, development, and public economics.

Neither the reading list nor evaluation scheme have been finalized, but the readings are expected to be comprised of (1) a forthcoming book by Josh Angrist and Steve Pischke, “Mostly Harmless Econometrics,” and (2) a selection of journal articles. One expected element of the evaluation scheme includes a critical evaluation and replication of an empirical paper, and possibly in-class presentations (which will require a third hour of meetings per week). While the course is targeted at PhD students, qualified MA students are welcome in the course.