Winthrop University

College of Business Administration

 

                                                                                                                                                                                               

Econ 345: Labor Economics

Spring 2007

Dr. Pantuosco

Office:  Thurmond 420

Office Hours     Monday 9:30 am – 12:30 pm                                                   

                        T,Th 7:15 am - 8:00 am, 9:15 am – 11:00 am, T,Th 1:30 pm – 2:00 pm 

E-mail pantuoscol@mail.winthrop.edu

Phone 323-4621                                             

 

Text: Contemporary Labor Economics:  McConnell, Brue, and McPherson. McGraw Hill Irwin. Seventh edition, Copyright 2006.

Prerequisite: Principles of Microeconomics - Economics 215

 


Course Description

 

Labor Economics applies microeconomic foundations to analyze the labor decisions of individuals, households and firms. The labor market is an important component of the determination of prices in the goods market. All firms incur some labor cost in the production of goods and services. Therefore, the cost of labor affects prices from the supply side. Labor economics also has a macroeconomic component, in viewing the impact that labor has on macroeconomic barometers.

 

Course Objectives

 

Upon completion of this course the student will have a better understanding of the factors the effect wages, the factors that effect the decision to supply labor, and the factors that effect the firm’s decision to produce goods and hire workers. The student will be able to interpret and calculate the labor market statistics. The student will have a sound understanding of the trends and social issues in the labor market from labor force participation, immigration, and international competition to the reduction in union density. The student will thoroughly understand the link between the labor market and the broader markets, such as the stock market and the overall economy.

 

Course Outline

 

Part 1: Labor Foundations: Labor Supply and Labor Demand

Labor Economics: Introduction and Overview - Chapter 1 and Notes       

The Theory of Individual Labor Supply - Chapter 2         

Labor Quality: Investing in Human Capital - Chapter 4    

The Demand for Labor - Chapter 5       

Wage Determination and the Allocation of Labor - Chapter 6      

 

Part 2: Labor Market Applications

Domestic Labor Market Trends - Chapter 3       

Wages of CEOs, Professional Athletes, and Actors - Notes

Immigration - Chapter 9

International Labor Mobility - Notes, European Union versus America

International Labor Markets - Notes, Shopping the world for a supplier

The Fate of Unions in the U.S - Chapter 10

Labor Market Monopsonies - Notes

Labor Market Discrimination - Chapters 14, 15

Government Influence on Labor - Chapter 12,13

Employment and Unemployment in the United States

 

There will be six short exams scheduled approximately every 4 classes. With the exception of exam 6, the exams will not take an entire class period. Each exam will contain questions on the new material and material covered in the past exams. The course is a progression. 

 

Grading:

 

Exams                                                  70%

Project                                                 12%

Presentation                                          5%

Assignments                                         8%

Class Participation/Attendance              5%

Total                                                    100%

 

Exams: Each exam counts for 14 percent of the student’s grade. Students can drop their lowest exam grade (not including exam 6).  The exams will be based on the information presented in the class, notes, required readings, and selected information. The student is also responsible for reading the chapters in the textbook. Students are expected to take all exams at the time they are scheduled. Failure to do so will result in a grade of a "0" for the exam. There will not be any make-up exams. In the case of a medical emergency the student must inform the instructor in advance of his or her absence from the exam by e-mail and phone. As expected the student must provide sufficient evidence to support his or her absence. The assignments and project for this course must be handed in to the professor on the day the assignment is due, prior to class. Late assignments will not be accepted.

 

Project and Presentation: The student will conduct a study on a labor market topic. The student will postulate a question. Explain why their question is important. Locate the data necessary to address their question. Search the literature to find opposing view points. Conduct a statistical analysis on the data, draw a conclusion that answers the original question asked, and present his/her results. The student’s written skills and presentation of the material are an important part of his/her grade. Professional dress is required on presentation day.

 

Class Participation and Attendance: Attending each class is critical to understanding the topics. After the third missed class, a point will be deducted from the class participation grade for each additional class missed. In the case of a medical problem, students are expected to present the proper documentation from their physician. If a student comes into a class late after the attendance roster has been passed, it is the student’s responsibility to sign the attendance roster. Failure to sign the roster will result in an unexcused absence.  Students who leave class early, or come in late, without the permission of the professor will be considered absent for the class. Students who are not attentive or unprepared for class will be marked absent for the day. The University Attendance policy will be applied.