Ses # Topics Readings: Propuesta: Seminario: Tópicos de Optimización Dinámica

Propuesta: Seminario: Tópicos de optimización dinámica
SES # TOPICS READINGS
Vector spaces
[SLP] chapter 3.
The principle of optimality

[SLP] chapter 4.1
[Acemoglu] sections 6.2 to 6.3.
Concavity and differentiability of the value function
[SLP] section 4.2.
Euler equations
1-7 Discrete time: deterministic models [SLP] section 4.5
Deterministic dynamics
[SLP] chapter 6.
Models with constant returns to scale

[SLP] section 4.3.
Nonstationary models
[Acemoglu] section 6.7.
Stochastic dynamic programming

[SLP] sections 9.1 to 9.2.
Stochastic Euler equations
8-9 Discrete time: stochastic models [SLP] section 9.5.
Stochastic dynamics
[SLP] section 9.6, chapters 11 and 12.
10-12 Continuous time Calculus of variations

The maximum principle

[Acemoglu] sections 7.2 to 7.3.
Discounted infinite-horizon optimal control

SES # TOPICS READINGS
Saddle-path stability
1) Recursive methods in economic dynamics. Robert Lucas, Nancy Stokey y Edward Prescott
2) Introduction to modern economic growth. Daron Acemoglou
LEC
TOPICS READINGS
#
Brunnermeier, Markus K. "Deciphering the Liquidity and Credit

Crunch 2007–2008." Journal of Economic Perspectives 23, no. 1
Understanding Financial (2009): 77–100.
1 Crises: Lessons from
History * Allen, Franklin, and Douglas Gale. Chapter 1 in
Understanding Financial Crises. Oxford University Press, 2009. ISBN:
9780199251421. [Preview with Google Books]
* Holmstrom, Bengt, and Jean Tirole. "Financial Intermediation,

Loanable Funds, and the Real Sector." Quarterly Journal of
Economics 112, no. 3 (1997): 663–91.
Chodorow-Reich, Gabriel. "The Employment Effects of Credit Market
Borrowing Constraints and
2 Disruptions: Firm-level Evidence from the 2008–9 Financial Crisis."
the Net Worth Channel
Quarterly Journal of Economics 129, no. 1 (2014): 1–59.
* Campello, Murillo, John R. Graham, et al. "The Real Effects of
Financial Constraints: Evidence from a Financial Crisis." Journal of
Financial Economics 97, no. 3 (2010): 470–87.
* Geanakoplos, John. "The Leverage Cycle." (PDF) NBER

Macroeconomics Annual 24 (2009): 1–65.
* Jorion, Philippe. "Risk Management Lessons from Long Term
Leverage, Fire Sales, and Capital Management." European Financial Management 6, no. 3
3
Amplification Mechanisms (2000): 277–300.
Shleifer, Andrei, and Robert Vishny. "Fire Sales in Finance and
Macroeconomics." Journal of Economic Perspectives 25, no. 1
(2011): 29–48.
4 Understanding Banks' * Rose, Clayton S., Daniel Baird Bergstresser, et al. "The Tip of the
Losses: Moral Hazard or Iceberg: JP Morgan Chase and Bear Stearns (A)." Harvard Business
Mistakes School Case. Case: 309–001, January 2009. (Revised November
2011.)
Acharya, Viral, Thomas Philippon, et al. "The Financial Crisis of 2007–
2009: Causes and Remedies." Financial Markets, Institutions &
Instruments 18, no. 2 (2009): 89–137.
Barberis, Nicholas C.
"Psychology and the Financial Crisis of 2007–2008." In Financial
Innovation: Too Much Or Too Little? MIT Press, 2012, pp. 15–28.
ISBN: 9780262018296. [Preview with Google Books]
Cheng, Ing-haw, Sahil Raina, et al. "Wall Street and the Housing
Bubble." American Economic Review 104, no. 9 (2014): 2797–829.
Ma, Yueran. "Bank CEO Optimism and the Financial Crisis." Harvard
University, 2014. (Working paper)
Akerlof, George A., and Paul M. Romer. "Looting: The Economic
Underworld of Bankruptcy for Profit." Brookings Papers on Economic
Activity, no. 2 (1993): 1–73.
* Diamond, Douglas W., and Philip H. Dybvig. "Bank Runs, Deposit

Insurance, and Liquidity." Journal of Political Economy 91, no. 3
(1983): 401–19.
Bordo, Michael D. "The Lender of Last Resort: Alternative Views and
Historical Experience." (PDF - 1.5 MB) FRB Richmond Economic
Liquidity, Part 1: Maturity
Review 76, no. 1 (1990): 18–29.
5 Mismatch and Banking
Gorton, Gary, and Andrew Metrick. "The Federal Reserve and Panic
Panics
Prevention: The Roles of Financial Regulation and Lender of Last
Resort." Journal of Economic Perspectives 27, no. 4 (2013): 45–64.
* Shin, Hyun Song. "Reflections on Northern Rock: The Bank Run
that Heralded the Global Financial Crisis." Journal of Economic
Perspectives 23, no. 1 (2009): 101–20.
* Holmstrom, Bengt. "Understanding the Role of Debt in the

Financial System." (PDF - 1.2MB) Bank for International Settlements
Working Paper no. 479, 2015.
Liquidity, Part 2: Debt, Gorton, Gary B. "Questions and Answers about the Financial Crisis-
6 Panics, and Flight to Prepared for the US Financial Crisis Inquiry Commission." National
Quality Bureau of Economic Research, February 2010.
* Caballero, Ricardo J., and Arvind Krishnamurthy. "Collective Risk
Management in a Flight to Quality Episode." The Journal of Finance
63, no. 5 (2008): 2195–230.
McDonald, Robert, and Anna Paulson. "AIG in Hindsight." Journal of

Economic Perspectives 29, no. 2 (2015): 81–106.
* Acemoglu, Daron, Asuman Ozdaglar, et al. "Systemic Risk and
Interconnections and
7 Stability in Financial Networks." (PDF) National Bureau of Economic
Complexity
Research Working Paper no. 18727, 2013.
* Caballero, Ricardo J., and Alp Simsek. "Fire Sales in a Model of
Complexity." The Journal of Finance 68, no. 6 (2013): 2549–87.
8 Optimal Policy: How to Bernanke, Ben S. "The Crisis and the Policy Response." Stamp
Mitigate or Prevent Crises? Lecture, London School of Economics, January 13, 2009.
Take Home Exam, due in Kohn, Donald L. "The Federal Reserve's Policy Actions During the
24 hours Financial Crisis and Lessons for the Future." Carleton University, May
13, 2010.
Swagel, Phillip. "Legal, Political, and Institutional Constraints on the
Financial Crisis Policy Response." Journal of Economic Perspectives
29, no. 2 (2015): 107–22.
* Caballero, Ricardo J. "Sudden Financial Arrest." IMF Economic
Review 58, no. 1 (2010): 6–36.
* Hanson, Samuel G., Anil K. Kashyap, et al. "A Macroprudential
Approach to Financial Regulation." Journal of Economic Perspectives
25, no. 1 (2011): 3–28.
Blanchard, Olivier, Giovanni Dell'Ariccia, et al. "Rethinking
Macroeconomic Policy." Journal of Money, Credit and Banking 42,
no. 1 (2010): 199–215.
INTERNATIONAL ECONOMICS
LEC
TOPICS READINGS
#
Section I: Core Models of International Trade
Essential
[DN] pp. 65–79, and 94–6.
Recommended
[F] pp. 179–88.
Deardorff, A. "The General Validity of the Law of Comparative
Lecture 1: Gains from Trade
Advantage." Journal of Political Economy 88, no. 5 (1980): 941–
1 and the Law of Comparative
57.
Advantage (Theory)
Dixit, A., and V. Norman. "Gains from Trade without Lump-Sum
Compensation." Journal of International Economics 21, no. 1–2
(1986): 111–22.
Samuelson, P. "The Gains from International Trade." Cambridge
Journal of Economics (1939): 195–205.
2& Lecture 2&3: The Ricardian Essential

3 Model (Theory) Dornbusch, R., S. Fischer, et al. "Comparative Advantage, Trade,
and Payments in a Ricardian Model with a Continuum of Goods."
American Economic Review 67, no. 5 (1977): 823–39.
Eaton, J., and S. Kortum. "Technology, Geography and Trade."
Econometrica 70, no. 5 (2002): 1741–79.
Recommended (Extensions and Generalizations):
Costinot, A. "On the Origins of Comparative Advantage." Journal
of International Economics 77, no. 2 (2009): 255–64.
Grossman, G., and E. Rossi-Hansberg. "External Economies and
International Trade Redux." The Quarterly Journal of Economics
125, no. 2 (2010): 829–58.
Jones, R. "Comparative Advantage and the Theory of Tariffs: A
Multi-Country, Multi- Commodity Model." Review of Economic
Studies 28, no. 3 (1961): 161–75.
[K] Chapter 10.
Matsuyama, K. "A Ricardian Model with a Continuum of Goods
under Nonhomothetic Preferences: Demand Complementarities,
Income Distribution, and North-South Trade." (PDF - 2.1MB) The
Journal of Political Economy 108, no. 6 (2000): 1093–120.
Wilson, Charles A. "On the General Structure of Ricardian Models
with a Continuum of Goods: Applications to Growth, Tariff
Theory, and Technical Change." Econometrica 48, no. 7 (1980):
1675–702.
Recommended (Extensions and Generalizations)
Alvarez, F., and R. Lucas. "General Equilibrium Analysis of the
Eaton-Kortum Model of International Trade." Journal of
Monetary Economics 54, no. 6 (2007): 1726–68.
Dekle, R., J. Eaton, et al. "Global Rebalancing with Gravity:
Measuring the Burden of Adjustment." IMF Staff Papers 55, no. 3
(2008): 511–40.
Fieler, Ana C. "Non-Homotheticity and Bilateral Trade: Evidence
and a Quantitative Explanation." Econometrica 79, no. 4 (2011):
1069–101. Mimeo.
Eaton, J., and S. Kortum. "Putting Ricardo to Work." Journal of
Essential
Costinot, A. "An Elementary Theory of Comparative Advantage."
Econometrica 77, no. 4 (2009): 1165–92.
Costinot, A., and J. Vogel. "Matching and Inequality in the World
Economy." Journal of Political Economy 118, no. 4 (2010): 747–
86.
Recommended (Worker Heterogeneity and the Pattern of Trade)
Grossman, G. "The Distribution of Talent and the Pattern and
Consequences of International Trade." Journal of Political
Economy 112, no. 1 (2004): 209–39.
Grossman, Gene M, and G. Maggi. "Diversity and Trade."
Lecture 4: Assignment Models Ohnsorge, F., and D. Trefler. "Sorting It Out: International Trade
4
(Theory) and Protection with Heterogeneous Workers." Journal of
Political Economy 115, no. 5 (2007): 868–92. (NBER Working
Paper no. 10959)
Recommended (Worker Heterogeneity and Labor Markets)
Acemoglu, D., and D. Autor. "Skills, Tasks and Technologies:
Implications for Employment and Earnings." Handbook of Labor
Economics 4 (2011): 1043–171.
Heckman, J., and B. Honore. "The Empirical Content of the Roy
Model." Econometrica 58, no. 5 (1990): 1121–49.
Heckman, J., and G. Sedlacek. "Heterogeneity, Aggregation, and
Market Wage Functions: An Empirical Model of Self-Selection in
the Labor Market." Journal of Political Economy 93, no. 6 (1985):
1077–125.
5 Lecture 5: Gains from Trade Essential

and the Law of Comparative Bernhofen, and Brown. "A Direct Test of the Theory of
Advantage (Empirics) Comparative Advantage: The Case of Japan." Journal of Political
Economy 112, no. 1 (2004): 48–67.
———. "An Empirical Assessment of the Comparative Advantage
Gains from Trade: Evidence from Japan." American Economic
Review 95, no. 1 (2005): 208–25.
Frankel, J., and D. Romer. "Does Trade Cause Growth?" American
Economic Review 89, no. 3 (1999): 379–99.
Feyrer, J. "Trade and Income Exploiting Time Series in
Geography." (PDF) NBER Working Paper no. 14910, 2009.
Recommended
Rodrik, Dani, and
Francisco Rodriguez. "Trade Policy and Economic Growth: A
Skeptic's Guide to the Cross-National Evidence." In Kenneth
Rogoff and Ben S. Bernanke. NBER Macroeconomics Annual
2000, MIT Press, 2001. ISBN: 9780262025034.
Feyrer, J. "Distance, Trade and Income – The 1967 to 1975
Closing of the Suez Canal as a Natural Experiment." NBER
Working Paper no. 15557, 2009.
Broda, Christian, and David E. Weinstein. "Globalization and the
Gains from Variety." The Quarterly Journal of Economics 121, no.
2 (2006): 541–85.
Essential
Costinot, Arnaud and Dave Donaldson. "What Goods Do
Countries Trade? A Quantitative Exploration of Ricardo's Ideas."
Review of Economic Studies 79, no. 2 (2012): 581-608.
Nunn, Nathan. "Relationship-Specificity, Incomplete Contracts,
and the Pattern of Trade." The Quarterly Journal of Economics
122, no. 2 (2007): 569–600.
Recommended
Mac Dougall, G. "British and American Exports: A Study
Suggested by the Theory of Comparative Costs. Part I." The
Lecture 6: The Ricardian
6 Economic Journal 61, no. 244 (1951): 697–724.
Model (Empirics)
Stern, R. "British and American Productivity and Comparative
Costs in International Trade." Oxford Economic Papers New
Series 14, no. 3 (1962): 275–96.
Balassa, B. "An Empirical Demonstration of Classical Comparative
Cost Theory." Review of Economics and Statistics 45, no. 3
(1963): 231–8.
Golub, and Hsieh. "Classical Ricardian Theory of Comparative
Advantage Revisited." Review of International Economics 8, no. 2
(2000): 221–34.
[JK] Deardorff, A.
Essential
Costinot, A., and D. Donaldson. "How Large Are the Gains from
Economic Integration? Theory and Evidence from US Agriculture,
1880-2002." (PDF) Working Paper, 2011.
Costinot, A., D. Donaldson, et al. "Evolving Comparative
Lecture 7: Assignment Models
7 Advantage and the Impact of Climate Change in Agricultural
(Empirics)
Markets: Evidence from a 9 Million-Field Partition of the Earth
(PDF - 2.2MB)." 2012.
Costinot, A., and D. Donaldson. "Ricardo's Theory of Comparative
Advantage: Old Idea, New Evidence." American Economic Review
Papers and Proceedings 102, no. 3 (2012): 453–58.
Specific-Factor Model (aka Ricardo-Viner)
Essential
[DN] pp. 38–43, 86–7, and 102–6.
Recommended:
[JK] Jones, R., and P. Neary. "The Positive Theory of International
Trade." pp. 21–7.
Bhagwati, J. "A Three Factor Model in
Theory, Trade and History." Trade, Balance of Payments and
Growth. Edited by R. W. Jones, R. Mundell and J. Vanek. North-
Holland Publishing Company, 1975.
Heckscher-Ohlin Model
Essential
[F] pp. 31–41, 64–71, and 83–93.
8& Lectures 8&9: Factor
Recommended
9 Proportion Theory
[DN] pp. 106–22.
Dornbusch, R., Stanley Fischer, and Paul A. Samuelson.
"Heckscher-Ohlin Trade Theory with a Continuum of Goods." The
[JK] Ethier, W. "Higher Dimensional Trade Theory."
[HKa] Chapter 1.
Jones, R. "The Structure of Simple General-Equilibrium Models."
(PDF) Journal of Political Economy 73 (1965): 557–72.
[JK] Jones, R., and P. Neary. "The Positive Theory of International
Trade." pp. 14–21.
Leamer, Edward E. The
Craft of Economics: Lessons From the Heckscher-Olin Framework.
The MIT Press, 2012. ISBN: 9780262016872.
10 & Lectures 10&11: Empirics of Heckscher-Ohlin: General/Introduction

11 The Heckcher-Ohlin Model Essential
Baldwin, Robert E. The
Development and Testing of Heckscher-Ohlin Trade Models: A
Review (Ohlin Lectures). MIT Press, 2008. ISBN: 9780262026567.
[F] Chapters 2, and 4.
Leamer, Edward E. The
Craft of Economics: Lessons from the Heckscher-Olin Framework.
The MIT Press, 2012. ISBN: 9780262016872.
[GR] Leamer, and Levinsohn. "International Trade Theory: The
Evidence." [section 1–3 only]
Heckscher-Ohlin: 'Goods Content' of Trade Tests
Essential
Harrigan, James. "Technology, Factor Supplies, and International
Specialization: Estimating the Neoclassical Model." American
Economic Review 87, no. 4 (1997): 475–94. (NBER Working Paper
no. 5722)
Hartigan. "Specialization and the Volume of
Trade: Do the Data Obey the Laws?" Handbook of International
Trade: Economic and Legal Analyses of Trade Policy and
Institutions. Vol. 2. Edited by Choi and Hartigan. Wiley-Blackwell,
2005. ISBN: 9781405120623. [section 2 only].
Recommended
Bernstein, Jeffrey R, and D. Weinstein. "Do Endowments Predict
the Location Of Production?: Evidence from National and
International Data." Journal of International Economics 56, no. 1
(2002): 55–76.
Blum, Bernardo S. "Endowments, Output, and the Bias of
Directed Innovation." Review of Economic Studies 77, no. 2
(2010): 534–59.
Morrow, Peter M. "Ricardian-Heckscher-Ohlin Comparative
Advantage: Theory and Evidence." Journal of International
Economics 82, no. 2 (2010): 137–51.
Romalis, John. "Factor Proportions and the Structure of
Commodity Trade." American Economic Review 94, no. 1 (2004):
67–97.
Schott, Peter K. "One Size Fits All? Heckscher-Ohlin Specialization
in Global Production." American Economic Review 93, no. 3
(2003): 686–708.
———. "Across-Product Versus Within-Product Specialization in
International Trade." The Quarterly Journal of Economics 119, no.
2 (2004): 647–78.
Heckscher-Ohlin: Factor Content of Trade Tests
Essential
Davis, and Weinstein. "The Factor Content of
Trade." The Handbook of International Trade: Economic and
Legal Analyses of Trade Policy and Institutions. Vol. 2. Edited by J.
Choi and J. Harrigan. Wiley-Blackwell, 2005. ISBN:
9781405120623.
Recommended
Antweiler, Werner and David Trefler. "Increasing Returns and All
That: A View from Trade." American Economic Review 92 no. 1
(2002): 93–119.
Bernhofen, Daniel M, and Brown. "Testing the General Validity
Of the Heckscher-Ohlin Theorem: The Natural Experiment of
Japan." (PDF) University of Nottingham Working Paper, 2009.
Bowen, Harry P, Leamer, et al. "Multicountry, Multifactor Tests
of the Factor Abundance Theory." (PDF - 2.43MB) American
Choi, and Krishna. "The Factor Content of Bilateral Trade: An
Empirical Test." Journal of Political Economy 112, no. 4 (2004):
887–914.
Davis, and Weinstein, et al. "Using International and Japanese
Regional Data to Determine When the Factor Abundance Theory
of Trade Works." (PDF - 3.1MB) American Economic Review 87,
no. 3 (1997): 421–46.
Davis, and Weinstein. "An Account of Global Factor Trade."
———. "Do Factor Endowments Matter for North-North Trade?"
NBER Working Paper no. 8516, 2001.
Debaere, Peter. "Relative Factor Abundance and Trade." Journal
of Political Economy 111, no. 3 (2003): 589–610.
Gabaix, X. "The Factor Content of Trade: A Rejection of the
Heckscher-Ohlin-Leontief Hypothesis." Mimeo, Harvard, 1997.
Hakura, Dalia S. "Why does HOV fail?: The Role of Technological
Differences Within the EC." Journal of International Economics
54, no. 2 (2001): 361–82.
Trefler, Daniel. "The Case of the Missing Trade and Other
Mysteries." American Economic Review 85, no. 5 (1995): 1029–
46.
———. "International Factor Price Differences: Leontief Was
Right!" Journal of Political Economy 101, no. 6 (1993): 961–87.
Trefler, Daniel, and Susan Chun Zhu. "The Structure of Factor
Content Predictions." Journal of International Economics 82, no.
2 (2010): 195–207.
Heckscher-Ohlin: FPE tests
Recommended
Bernard, Redding, et al. "Testing for Factor Price Equality with
Unobserved Differences in Factor Quality or Productivity." (PDF)
Working Paper.
Slaughter, Mathew. "Does Trade Liberalization Converge Factor
Prices? Evidence From the Antebellum Transportation
Revolution." Journal of International Trade and Economic
Development 10, no. 3 (2001): 339–62.
Essential
[JK] Tybout. "Plant- and Firm-Level Evidence on "New" Trade
Theories."
Bernard, Jensen, et al. "Firms in International Trade." Journal of
Trefler, Daniel. "The Long and Short of the Canada-U.S. Free
Trade Agreement." American Economic Review 94, no. 4 (2004):
870–95.
Helpman, Melitz, et al. "Estimating Trade Flows: Trading Partners
and Trading Volumes." The Quarterly Journal of Economics 123,
no. 2 (2008): 441–87.
Recommended
Pavcnik, Nina. "Trade Liberalization, Exit, and Productivity
Lectures 12&13: Trade Theory Improvements: Evidence from Chilean Plants." Review of
12 &
with Firm-Level Heterogeneity Economic Studies 69, no. 1 (2002): 245–76.
13
(Empirics) Lilleeva, Alla and Daniel Trefler. "Improved Access to Foreign
Markets Raises Plant-Level Productivity...For Some Plants." (PDF)
Quarterly Journal of Economics (2010): 1051.
Eaton, Kortum, et al. "An Anatomy of International Trade:
Evidence from French Firms." NBER Working Paper No. 14610,
2008.
Bernard, Eaton, et. al. "Plants and Productivity in International
Trade." American Economic Review 93, no. 4 (2003): 1268–90.
Roberts, and Tybout. "The Decision to Export in Colombia: An
Empirical Model of Entry with Sunk Costs." American Economic
Review 87, no. 4 (1997): 545–64.
Bernard, Andrew B., and J. Bradford Jensen. "Exceptional
Exporter Performance: Cause, Effect, or Both?" Journal of
International Economics 47, no. 1 (1999): 1–25.
Monopolistic Competition with Firm-Level Heterogeneity
Essential
Melitz, M. "The Impact of Trade on Intra-Industry Reallocations
and Aggregate Industry Productivity." Econometrica 71, no. 6
(2003): 1695–725.
Melitz, M., and S. Redding. "Heterogeneous Firms and Trade."
NBER Working Paper No. 18652, 2012. (Handbook (2013))
Recommended
Arkolakis, Costas. "Market Penetration Costs and the New
Consumers Margin in International Trade." Journal of Political
Economy 118, no. 6 (2010): 1151–99.
Arkolakis, C., and M. Muendler. "The Extensive Margin of
Exporting Products: A Firm-Level Analysis." Mimeo, 2010.
Bernard, S. Redding, et al. "Comparative Advantage and
Heterogeneous Firms." (PDF) Review of Economic Studies 74, no.
1 (2007): 31–66.
———. "Multi-product Firms and Trade Liberalization." The
Chaney, T. "Distorted Gravity: Heterogeneous Firms, Market
Structure and the Geography of International Trade." (PDF)
American Economic Review (2006).
Lectures 14&15: Trade Theory
14 & Helpman, E., O. Itskhoki, et al. "Inequality and Unemployment in
with Firm-Level Heterogeneity
15 a Global Economy." Econometrica 78, no. 4 (2010): 1239–83.
(Theory)
Mayer, T., M. Melitz, et al. "Market size, Competition, and the
Product Mix of Exporters." (PDF) Mimeo, 2009.
Melitz, Marc, and Gianmarco Ottaviano. "Market Size, Trade and
Productivity." Review of Economic Studies 75, no. 1 (2008): 295–
316.
Sampson, T. "Selection into Trade and Wage Inequality." (PDF)
Mimeo, 2012.
Monopolistic Competition without Firm-Level Heterogeneity
(Not Covered in Class)
Recommended
[HKa] Chapters 6, and 9.
[K] Chapters 1, and 3.
Fajgelbaum, P., G. Grossman, et al. "Income Distribution, Product
Quality, and International Trade." (PDF) Journal of Political
Economy 119, no. 4 (2011): 721–65.
Other Oligopolistic Settings (Not Covered in Class)
Recommended
[HKa] Chapter 5.
[K] Chapter 4.
Neary, P. "International Trade in General Oligopolistic
Equilibrium." (PDF) Mimeo.
16 Lecture 16: Gravity Models Essential

and the Gains From Trade Arkolakis, C., and Arnaud Costinot. "New Trade Models, Same
Old Gains?" American Economic Review 102, no. 1 (2012): 94–
130.
Costinot A., and A. Rodriguez-Clare. "Trade Theory with
Numbers: Quantifying the Consequences of Globalization." NBER
Working Paper no. 18896, 2013. Handbook
Recommended
Arkolakis, C., A. Costinot, et al. "The Elusive Pro-Competitive
Effects of Trade." (PDF) Mimeo, 2012.
Atkeson, A., and A. Burstein "Innovation, Firm Dynamics, and
International Trade." Journal of Political Economy 118, no. 3
(2010): 433–84.
Burstein, A., and J. Vogel. "Globalization, Technology, and the
Skill Premium: A Quantitative Analysis." (PDF) Mimeo, 2008.
Ramondo, N., and A. Rodriguez-Clare. "Trade, Multinational
Production, and the Gains from Openness." Journal of Political
Economy 121, no. 2 (2013): 273–322. (NBER Working Paper no.
15604)
Essential
Anderson, James E, and Van Wincoop. "Trade Costs." Journal of
Economic Literature 42 (2004): 691–751.
Hummels, David. "Transportation Costs and International Trade
in the Second Era of Globalization." Journal of Economic
Perspectives 21, no. 3 (2007): 131–54.
Trefler, and Lai. Working Paper 2002.
Head, and Mayer. Handbook chapter draft. (2013).
Donaldson, Dave. "Railroads of the Raj: Estimating the Impact of
Transportation Infrastructure." NBER Working Paper no. 16487,
Lecture 17: Empirics of Gravity
17 2010.
Models
Recommended (Gravity Equation Estimation)
Anderson, James E., and Van Wincoop. "Gravity with Gravitas: A
Solution to the Border Puzzle." American Economic Review 93,
no. 1 (2003): 170–92.
Rauch, James E. "Networks Versus Markets in International
Trade." Journal of International Economics 48, no. 1 (1999): 7–35.
Hummels, and Hilberry. "Trade Responses to Geographic
Frictions: A Decomposition Using MicroData." European
Economic Review 52, no. 3 (2008): 527–50. (NBER Working Paper
no. 11339)
Section II: Miscellaneous Topics in Trade
18 Lecture 18: Trade Costs Recommended

Fackler, and Goodwin. "Spatial Price
Analysis." In Handbook of Agricultural Economics Volume 1B:
Marketing, Distribution, and Consumers. Edited by Gardner and
Rausser. North Holland, 2001. ISBN: 9780444507297.
Engel, and Rogers. "How Wide is the Border?" American
Goldberg, and Verboven. "Market Integration and Convergence
to the Law of One Price: Evidence from the European Car
Market." Journal of International Economics 65, no. 1 (2005): 49–
73.
Greif, Avner. Institutions and the Path to the
Modern Economy: Lessons From Medieval Trade.Cambridge
University Press, 2006. ISBN: 9780521671347.
Obstfeld, Maurice, and Rogoff. "The Six Major Puzzles in
International Macroeconomics: Is There a Common Cause?"
NBER Macroeconomics Annual 15, 2001.
Fafchamps. Market
Institutions in Sub-Saharan Africa: Theory and Evidence. MIT
Press, 2004. ISBN: 9780262062367.
19 & Lecture 19&20: Offshoring and Recommended (Theory)

20 Fragmentation of Production Antràs, P., L. Garicano, et al. "Offshoring in a Knowledge
Economy." The Quarterly Journal of Economics 121, no. 1 (2006):
31–77. (NBER Working Paper no. 11094)
Antras, P., and E. Rossi-Hansberg. "Organizations and Trade."
Annual Review of Economics 1, no. 1 (2009): 43–64. (NBER
Working Paper no. 14262)
Costinot, A., J. Vogel, et al. "An Elementary Theory of Global
Supply Chains." Review of Economic Studies 80, no. 1 (2013):
109–44. (NBER Working Paper no. 16936)
Burstein A., and A. Monge-Naranjo. "Foreign Know-How, Firm
Control, and the Income of Developing Countries." The Quarterly
Journal of Economics 124, no. 1 (2009): 149–95.
Grossman, Gene M, and E. Rossi-Hansberg. "Trading Tasks: A
Simple Theory of Offshoring." American Economic Review 98, no.
5 (2008): 1978–97.
———. "Task Trade between Similar Countries." Econometrica
80, no. 2 (2012): 593-629.
Kremer, M., and E. Maskin. "Globalization and Inequality." (PDF -
1.34MB) Mimeo, Harvard University, 2006.
Nocke, V., and S. Yeaple. "An Assignment Theory of Foreign
Direct Investment." Review of Economic Studies 75, no. 2 (2008):
529–57.
Rodriguez-Clare, A. "Offshoring in a Ricardian World." American
Economic Journal: Macroeconomics 2, no. 2 (2010): 227–58.
Yi, K. "Can Vertical Specialization Explain the Growth of World
Trade?" Journal of Political Economy 111, no. 1 (2003): 52–102.
———. "Vertical Specialization and the Border Effect Puzzle."
American Economic Review, 2005. (Federal Reserve Bank of
Philadelphia Working Paper no. 05-24).
Recommended (Empirics)
Hummels, Jorgensen, et al. "The Wage and Employment Effects
of Outsourcing: Evidence from Danish Matched Worker Firm
Data." (PDF) Working Paper, 2010.
Amiti, Mary, and Wei. "Service Offshoring and Productivity:
Evidence from the US." (PDF) CEPR Working Paper, 2006.
Jensen, and Kletzer. "Measuring Tradable Services and the Task
Content of Offshorable Services Jobs." (PDF) UCSC Working
Paper, 2007.
Liu, and Trefler. " Much Ado About Nothing: American Jobs and
the Rise of Service Outsourcing to China and India." NBER
Working Paper No. 14061, 2008.
Feenstra, and Hanson. "The Impact of Outsourcing and High-
Technology Capital on Wages: Estimates For The United States,
1979–1990." The Quarterly Journal of Economics114, no. 3
(1999): 907–40.
Hsieh, Chang-Tai, and Woo. "The Impact of Outsourcing to China
on Hong Kong's Labor Market." American Economic Review 95,
no. 5 (2005): 1673–87.
Ebeinstein, Harrison, et al. "Estimating the Impact of Trade and
Offshoring on American Workers Using the Current Population
Surveys." NBER Working Paper no. 15107, 2009.
Autor, and Handel. "Putting Tasks to the Test: Human Capital, Job
Tasks and Wages." NBER Working Paper no. 15116, 2009.
Hummels, Jorgensen, et al. "The Wage and Employment Effects
of Outsourcing: Evidence from Danish Matched Worker Firm
Data." (PDF) Working Paper, 2010.
Blinder, Alan, and Alan Krueger. "Alternative Measures of
Offshorability: A Survey Approach." NBER Working Paper No.
15287, 2009.
Blinder, Alan. "How Many U.S. Jobs Might Be Offshorable?"
Princeton Working Paper, 2007.
Jensen, and Kletzer. "Measuring Tradable Services and the Task
Content of Offshorable Services Jobs." UCSC Working Paper,
2007.
Amiti, and Wei. "Service Offshoring, Productivity and
Employment: Evidence from the US." (PDF) CEPR Working Paper,
2006.
Becker, Sascha, Karolina Elkholm, and Marc-Andreas Muendler.
"Offshoring and The Onshore Composition of Tasks and Skills."
UCSD Working Paper, 2009.
Recommended
Fujita, Masahisa, Paul
Krugman, and Anthony J. Venables. The Spatial Economy: Cities,
21 & Lecture 21&22: Economic Regions and International Trade. MIT Press, 1999. ISBN:
22 Geography 9780262062046.
Redding, and Sturm. American Economic Review 2007.
Bleakley, and Yin. The Quarterly Journal of Economics 2011.
Greenstone, Hornbeck and Moretti. The Journal of Political
Economy 2010.
23 & Lecture 23&24: Trade Policy Essential (Trade Policy)

24 and Trade Agreements [HKb] Chapter 2.
(Theory) G., Grossman, and E. Helpman. "Protection for Sale." American
Recommended (Trade Policy)
Dixit, A. "Tax Policy in Open Economies."
Handbook of Public Economics. Vol. 1. Edited by A. Auerbach and
M. Feldstein. North Holland, 1985. ISBN: 9780444876126.
Johnson, H. G. "Optimum Tariffs and Retaliation." Review of
Economic Studies 1953.
[GR] Rodrik, D. "The Political Economy of Trade Policy."
Essential (Trade Agreements)
[BS] Chapter 2.
Recommended (Trade Agreements)
Bagwell, Kyle, and R. W. Staiger. "An Economic Theory of GATT."
Grossman, G., and E. Helpman. "Trade Wars and Trade Talks."
Journal of Political Economy 103, (1995): 675–708. (NBER
Working Paper no. 4280)
Maggi, G., and A. Rodríguez-Clare. "The Value of Trade
Agreements in the Presence of Political Pressures." Journal of
Political Economy 106, no. 3 (1998): 574–601.
Horn, Henrik, G. Maggi, et al. "Trade Agreements as
Endogenously Incomplete Contracts." American Economic
Review 100, no. 1 (2010): 394–419.
Ossa, R. "A 'New Trade' Theory of GATT/WTO Negotiations."
Mimeo, 2010.
Strategic Trade Policy (Not Covered in Class)
[GR] Brander, J. "Strategic trade policy."
Brander, J., and B. Spencer. "Export Subsidies and International
Market Share Rivalry." (PDF) Journal of International Economics
18 (1985): 83–100.
Eaton, J., and G. Grossman. "Optimal Trade Policy and Industrial
Policy Under Oligopoly." The Quarterly Journal of Economics 101,
no. 2 (1986): 383–406.
[HKb] Chapters 3, 4, 5, 6, and 8.
Maggi, G. "Strategic Trade Policies with Endogenous Mode of
Competition." American Economic Review 86, no. 1 (1996): 237–
58.
Recommended (Political Economy of Trade Policy)

Goldberg, Pinelopi Koujianou, and Maggi. "Protection for Sale:
An Empirical Investigation." American Economic Review 89, no. 5
(1999): 1135–55.
[JK] Gawande, and Krishna. "The Political Economy of Trade
Policy: Empirical Approaches."
Trefler, Daniel. "Trade Liberalization and the Theory of
Endogenous Protection: An Econometric Study of US Import
Policy." Journal of Political Economy 101, no. 1 (1993): 138–60.
Lecture 25&26: Political
25 & Recommended (Evidence on the role of the WTO and Trade
Economy of Trade Policy and
26 Agreements)
the WTO (Empirics)
Broda, Christian, Nuno Limão, and David E. Weinstein. "Optimal
Tariffs and Market Power: The Evidence." American Economic
Review 98, no. 5 (2008): 2032-2065.
Limao, Nuno. "Preferential Trade Agreements as Stumbling
Blocks for Multilateral Trade Liberalization: Evidence for the
United States." American Economic Review 96, no. 3 (2006): 896–
914.
Rose, Andrew K. "Do We Really Know That the WTO Increases
Trade?" American Economic Review 94, no. 1 (2004): 98–114.
LABOR ECONOMICS I
LEC
TOPICS READINGS
#
I. Labor Market Facts and Trends
Goldin, Claudia. "Labor Markets in the 20th Century."

NBER Historical Working Paper no. 58, (June 1994).
Romer, Christina. "Spurious Volatility in Historical
Unemployment Data." Journal of Political Economy 94,
no. 1 (1986): 1-37. ( PDF - 1.3MB)
Goldin, Claudia, and Robert Margo. "The Great
Compression: The Wage Structure in the United States at
Mid-century." Quarterly Journal of Economics 107, no. 1
(1992): 1-34.
Autor, David, and Mark Duggan. "The Rise in the
Disability Rolls and the Decline in Unemployment."
Quarterly Journal of Economics 118, no. 1 (2003): 157-
205.
Farber, Henry. "Job Loss and the Decline in Job Security
in the United States." Princeton University Industrial
Relations Section, Working Paper no. 520, 2007. ( PDF)
Acemoglu, Daron, David Autor, and David Lyle. "Women,
War, and Wages: The Effect of Female Labor Supply on
the Wage Structure at Mid-century." Journal of Political
Economy 112, no. 3 (2004): 497-551. ( PDF)
1 Labor markets
Katz, Lawrence, and David Autor.
"Changes in the Wage Structure and Earnings Inequality."
Chapter 26 in The Handbook of Labor Economics. Vol. 3A.
Edited by Orley Ashenfelter, and David Card. North
Holland, 1999. ISBN: 9780444501875.
Lemieux, Thomas. "The Changing Nature of U.S. Wage
Inequality." Journal of Population Economics 21, no. 1
(2008): 21-48. ( PDF)
Autor, David, Lawrence Katz, and Melissa Kearney.
"Trends in U.S. Wage Inequality: Revising the
Revisionists." The Review of Economics and Statistics 90,
no. 2 (2008): 300–323. ( PDF)
Saez, Emmanuel, and Thomas Piketty. "Income Inequality
in the United States: 1913-1998." Quarterly Journal of
Economics 118, no. 1 (2003). ( PDF)
Kopczuk, Wojciech, Emmanuel Saez, and Jae Song.
"Earnings Inequality and Mobility in the United States:
Evidence From Social Security Data Since 1937." The
Quarterly Journal of Economics 125, no. 1 (2010): 91-128.
( PDF)
II. Neoclassical Labor Supply

Deaton, Angus, and John
Muellbauer. Economics and Consumer Behavior.
Cambridge University Press, 1980. (Focus especially on
chapter 4) ISBN: 9780521296762.
Killingsworth, Mark. Chapters 1, 2,
and 7 in Labor Supply. Cambridge University Press, 1983.
ISBN: 9780521299169.
Abbott, Michael, and Orley Ashenfelter. "Labor Supply,
Commodity Demand and the Allocation of Time." Review
of Economic Studies 43, no. 3 (1976): 389-411.
Ashenfelter, Orley, and James Heckman. "The Estimation
of Income and Substitution Effects in a Model of Family
Labor Supply." Econometrica 42, no. 1 (1974): 73-86. (
PDF - 1.3MB)
Blundell, Richard, and Thomas
MaCurdy. "Labor Supply: A Review of Alternative
2 Basics; review of duality Approaches." Chapter 27 in The Handbook of Labor
Economics. Vol. 3A. Edited by Orley Ashenfelter, and
David Card. North Holland, 1999. ISBN: 9780444501875.
Killingsworth, Mark, and James
Heckman. "Female Labor Supply: A Survey." Chapter 2 in
The Handbook of Labor Economics. Vol. 1. Edited by
Orley Ashenfelter, and Richard Layard. North Holland,
1987. ISBN: 9780444878564. ( PDF - 5.5MB)
Ashenfelter, Orley. "What is Involuntary
Unemployment?" Proceedings of the American
Philosophical Society 122, no. 3 (1978): 135-138.
Heckman, James J. "Shadow Prices, Market Wages and
Labor Supply." Econometrica 42, no. 4 (1974): 679-94.
Imbens, Guido W., 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, no. 4 (2001): 778-794. (
PDF)
3-4 Tax and transfer programs; theoretical Moffitt, Robert. "Welfare Programs
and empirical analysis of negative and Labor Supply." Chapter 34 in Handbook of Public
income tax (NIT) programs Economics. Vol. 4. Edited by Alan Auerbach, and Martin
Feldstein. North Holland, 2002. ISBN: 9780444823151.
Eissa, Nada, and Jeffrey Leibman. "Labor Supply
Response to the Earned Income Tax Credit." Quarterly
Journal of Economics 111, no. 2 (1996): 605-637. ( PDF -
2.9MB)
Ashenfelter, Orley. "The Labor
Supply Response of Wage Earners." In Welfare in Rural
Areas. Edited by John Palmer, and Joseph Pechman.
Brookings Institution, 1978, pp. 109-148. ISBN:
9780815768951.
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, no. 4 (1983): 380-407.
Ashenfelter, Orley. "Determining Participation in Income-
Tested Social Programs." Journal of the American
Statistical Association 78, no. 383 (1983): 517-525.
Ashenfelter, Orley, and Mark Plant. "Non-Parametric
Estimates of the Labor Supply Effects of Negative Income
Tax Programs." Journal of Labor Economics 8, no. 1, part
2, (1990): S397-S415.
Plant, Mark. "An Empirical Analysis of Welfare
Dependence." American Economic Review 74, no. 4
(1984): 673-684.
Blank, Rebecca. "Evaluating Welfare Reform in the
United States." Journal of Economic Literature 40 (2002):
1105-1166. ( PDF)
Card, David, and Dean Hyslop. "Estimating the Effects of
a Time-Limited Earnings Subsidy for Welfare-Leavers."
Econometrica 73, no. 6 (2005): 1723-1770. ( PDF)
5 The life-cycle model; theory; the Lucas, Robert E., and Leonard Rapping. "Real Wages,
institute of statistics and Employment, and Inflation." Journal of Political Economy
econometrics; basic panel 77, no. 5 (1969): 721-764. ( PDF - 1.7MB)
econometrics Becker, Gary, and Gilbert Ghez.
Allocation of Time and Goods Over the Life-Cycle.
National Bureau of Economic Research, 1975. ISBN:
9780870145148.
MaCurdy, Thomas. "An Empirical Model of Labor Supply
in a Life-Cycle Setting." Journal of Political Economy 89,
no. 6 (1981): 1059-1085.
Altonji, Joseph. "Intertemporal Substitution in Labor
Supply: Evidence from Micro Data." Journal of Political
Economy 94, no. 3, part 2 (1986): S176-S215.
Browning, Martin, Angus Deaton, and Margaret Irish. "A
Profitable Approach to Labor Supply and Commodity
Demand Over the Life-Cycle." Econometrica 53, no. 3
(1985): 503-543.
Ashenfelter, Orley. "Macroeconomic Analyses and
Microeconomic Analyses of Labor Supply." Carnegie-
Rochester Conference on Public Policy 21, no. 1 (1984):
117-156.
Angrist, Joshua. "Grouped-Data Estimation and Testing in
Simple Labor Supply Models." Journal of Econometrics
47, no. 2 (1991): 243-266.
Card, David. "Intertemporal Labor
Supply: An Assessment." In Advances in Econometrics
Sixth World Congress. Vol. II. Edited by Christopher Sims.
Cambridge University Press, 1996, pp. 49-78. ISBN:
9780521566094.
Blundell, Richard, Alan Duncan, and Costas Meghir.
"Estimating Labor Supply Responses Using Tax Reforms."
Econometrica 66, no. 4 (1998): 827-861. ( PDF - 3.0MB)
Devereux, Paul J. "Small Sample Bias in Synthetic Cohort
Models of Labor Supply." The Journal of Applied
Econometrics 22, no. 4 (2007): 839-848.
Card, David, Raj Chetty, and Andrea Weber. "Cash-on-
Hand and Competing Models of Intertemporal Behavior:
New Evidence from the Labor Market." Quarterly Journal
of Economics 122, no. 4 (2007): 1511-1560.
Angrist, Joshua, and Jorn-Steffen
Pischke. Mostly Harmless Econometrics: An Empiricist's
Companion. Princeton University Press, 2008. ISBN:
9780691120355.
Camerer, Colin, Linda Babcock, George Lowenstein, and

Richard Thaler. "Labor Supply of New York City
Cabdrivers: One Day at a Time." Quarterly Journal of
Economics 112 (1997): 407-441.
Oettinger, Gerald S. "An Empirical Analysis of the Daily
Labor Supply of Stadium Vendors." Journal of Political
Economy 107, no. 2 (1999): 360-92.
Farber, Henry. "Is Tomorrow Another Day? The Labor
Supply of New York City Cab Drivers." Journal of Political
Economy 113, no. 1 (2005): 46-82. ( PDF)
Cab drivers, stadium vendors, and
6 Fehr, Ernst, and Lorenz Goette. "Do Workers Work More
bicycle messengers
if Wages are High? Evidence from a Randomized Field
Experiment." American Economic Review 97, no. 1
(2007): 298-317.
Farber, Henry. "Reference-Dependent Preferences and
Labor Supply: The Case of New York City Taxi Drivers."
American Economic Review 98, no. 3 (2008): 1069-1082.
Ashenfelter, Orley, Kirk Doran, and Bruce Schaller. "A
Shred of Credible Evidence on the Long-Run Elasticity of
Labor Supply." National Bureau of Economic Research,
Working Paper 15746, (2010).
7 Household family models; theory of Becker, Gary S. A Treatise on the

time allocation; IV/Wald estimators Family. Harvard University Press, 1981. ISBN:
9780674906969.
Bronars, Stephen, and Jeff Grogger. "The Economic
Consequences of Unwed Motherhood: Using Twins as a
Natural Experiment." American Economic Review 84, no.
5 (1994): 1141-1156.
Browning, M. "Children and Household Economic
Behavior." Journal of Economic Literature 30, no. 3
(1992): 1434-1475.
Gronau, Reuben. "Leisure, Home Production. and Work
—The Theory of the Allocation of Time Revisited."
Journal of Political Economy 85, no. 6 (1977): 1099-1124.
———. "Home Production—A
Survey." Chapter 4 in The Handbook of Labor Economics.
Vol. 1. Edited by Orley Ashenfelter, and Richard Layard.
North Holland, 1987. ISBN: 9780444878564.
Angrist, Joshua, and William Evans. "Children and their
Parents' Labor Supply: Evidence from Exogenous
Variation in Family Size." American Economic Review 88,
no. 3 (1998): 450-477.
Gronau, Reuben. "Sex-Related Wage Differentials and
Women's Interrupted Careers-The Chicken or the Egg."
Journal of Labor Economics 6, no. 3 (1988): 277-301.
Willis, Robert. "What Have We Learned from the
Economics of the Family?" American Economic Review
77, no. 2 (1987): 68-81.
Gelbach, Jonah. "Public Schooling for Young Children and
Maternal Labor Supply." American Economic Review 92,
no. 1 (2002): 307-322.
Kearney, Melissa. "Is There an Effect of Incremental
Welfare Benefits on Fertility Behavior? A Look at the
Family Cap." Journal of Human Resources 39, no. 2
(2004): 295-325.
Pischke. "Instrumental Variables." Chapter 4 in Mostly
Harmless Econometrics: An Empiricist's Companion.
Princeton University Press, 2008. ISBN: 9780691120355.
Marriage Markets
Becker, Gary. "A Theory of Marriage: Part I." Journal of
Political Economy 81, no. 4 (1973): 813-46.
Grossbard-Shechtman, Amyra. "A Theory of Allocation of
Time in Markets for Labor and Marriage." Economic
Journal 94 (1984): 863-882.
Chiappori, Pierre-Andre, Bernard Fortin, and Guy Lacroix.
"Marriage Market, Divorce Legislation, and Household
Labor Supply." Journal of Political Economy 110, no. 1
(2002): 37-72.
Angrist, Joshua. "How Do Sex Ratios Affect Marriage and
Labor Markets? Evidence from America's Second
Generation." Quarterly Journal of Economics 117, no. 3
(2002): 997-301.
Qian, Nancy. "Missing Women and the Price of Tea in
China: The Effect of Sex-Specific Income on Sex
Imbalance." Quarterly Journal of Economics 123, no. 3
(2008): 1251-1285. ( PDF)
8 Quantity/quality trade-offs Becker, Gary, and H. Gregg Lewis. "On the Interaction
between the Quantity and Quality of Children." Journal
of Political Economy 82, no. 2, part 2 (1973): S279-S288.
Becker, Gary, and Nigel Tomes. "Child Endowments and
the Quantity and Quality of Children." Journal of Political
Economy 84, no. 4, part 2 (1976): S143-S162.
Rosenzweig, Mark, and Kenneth Wolpin. "Testing the
Quantity-Quality Fertility Model: The Use of Twins as a
Natural Experiment." Econometrica 48, no. 1 (1980): 227-
240.
Black, Sandra, Paul Devereux, and Kjell Salvanes. "The
More the Merrier? The Effect of Family Size and Birth
Order on Children's Education." Quarterly Journal of
Economics 120, no. 2 (2005): 669-700.
Qian, Nancy. "Quantity-Quality and the One Child Policy:
The Only-Child Disadvantage in School Enrollment in
Rural China." National Bureau of Economic Research,
Working Paper 14973, 2009.
Angrist, Joshua, Victor Lavy, and Analia Schlosser. "New
Evidence on the Causal Link between the Quantity and
Quality of Children." The Journal of Labor Economics
(2011). (Forthcoming)
Rosenzweig, Mark, and Kenneth Wolpin. "Natural
"Natural Experiments" Experiments in Economics."
Journal of Economic Literature 38 (2000): 827-834.
Rosenzweig, Mark, and Junsen Zhang. "Do Population
Control Policies Induce More Human Capital Investment?
Twins, Birthweight, and China's "One Child" Policy."
Review of Economic Studies 76, no. 3 (2009): 1149-1174.
III. Labor Demand, Immigration, Minimum Wages, Unions
Hamermesh, Daniel. Labor Demand.

Princeton University Press, 1993. (Read chapters, 2-3, pp.
18-136.) ISBN: 9780691042541.
———. "The Demand for Labor in
the Long Run." Chapter 8 in The Handbook of Labor
Economics. Vol. 1. Edited by Orley Ashenfelter, and
Richard Layard. North Holland, 1987. ISBN:
9780444878564.
Neoclassical demand theory; review of Nickell, S. "Dynamic Models of Labor
9 Demand." Chapter 9 in The Handbook of Labor
Hicks-Marshall formulas
9780444878564.
Card, David. "Unexpected Inflation, Real Wages, and
Employment Determination in Union Contracts."
Angrist, Joshua. "Short-Run Demand for Palestinian
Labor." Journal of Labor Economics 14, no. 3 (1996): 425-
453.
10 Empirical studies of immigration Johnson, George E. "The Labor Market Effects of

effects Immigration." Industrial and Labor Relations Review 33,
no. 3 (1980): 331-341.
Borjas, George. "The Economic Benefits from
Immigration," Journal of Economic Perspectives 9, no. 2
(1995): 3-22. ( PDF)
Altonji, J., and David Card. "The
Effects of Immigration on the Labor Market Outcomes of
Less-Skilled Natives." In Immigration, Trade, and the
Labor Market. Edited by John Abowd, and Richard
Freeman. University of Chicago Press, 1991, pp. 201-234.
ISBN: 9780226000954.
Card, David. "The Impact of the Mariel Boatlift on the
Miami Labor Market." Industrial and Labor Relations
Review 43 (1990): 245-257.
Borjas, George, Richard B. Freeman, and Lawrence F.
Katz. "How Much Do Immigrant and Trade Affect Labor
Market Outcomes?" Brookings Papers on Economic
Activity 1 (1997): 1-90. ( PDF - 1.6MB)
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 (1997): 594-604.
Angrist, Joshua, and A. Kugler. "Protective or Counter-
Productive? Labor Market Institutions and the Effect of
Immigration on EU Natives." The Economic Journal 113,
no. 488 (2003): F302-F331.
Borjas, George. "The Labor Demand Curve is Downward
Sloping: Reexamining the Impact of Immigration on the
Labor Market." Quarterly Journal of Economics 118, no. 4
(2003): 1335-1374. ( PDF)
Cortes, Paul. "The Effect of Low-Skilled Immigration on
US Prices: Evidence from CPI Data." Journal of Political
Economy 116, no. 3 (2008): 381-422.
Card, David. "Immigration and Inequality." American
Economic Review: Papers and Proceedings 99, no. 2
(2009): 1-21.
Smith, Christopher L. "The Impact of Low-skilled
Immigration on the Youth Labor Market." Federal
Reserve Board of Governors, Working Paper 2010-3,
December 2009. ( PDF)
Bleakley, Hoyt, and Aimee Chin. "Language Skills and
Earnings: Evidence from Childhood Immigrants." Review
of Economics and Statistics 86, no. 2 (2004): 481-96. (
PDF)
11 Minimum wages; review of Brown, Charles. "Minimum Wages,

monopsony Employment, and the Distribution of Income." Chapter
32 in The Handbook of Labor Economics. Vol. 3. 3 volume
sets, vols. 3A, 3B, and 3C. Edited by Orley Ashenfelter,
and David Card. North Holland, 1999. ISBN:
9780444822895.
Card, David. "Using Regional Variation to Measure the
Effect of the Federal Minimum Wage." Industrial and
Labor Relations Review 46, no. 1 (1992): 22-37. ( PDF)
Card, David, and Alan B. Krueger.
Myth and Measurement: The New Economics of the
Minimum Wage. Princeton University Press, 1997. ISBN:
9780691048239.
Kennan, John. "The Elusive Effects of Minimum Wages."
Journal of Economic Literature 33, no. 4 (1995): 1950-
1965.
Dickens, Richard, Stephen Machin, and Alan Manning.
"The Effects of Minimum Wages on Employment: Theory
and Evidence From Britain." Journal of Labor Economics
17, no. 1 (1999): 1-22.
Manning, Alan. Monopsony in
Motion: Imperfect Competition in Labor Markets.

Differences-in-differences methods; Pischke. "Parallel Worlds: Fixed Effects, Differences-in-
12 Differences, and Panel Effects." Chapter 5 in Mostly
the M&M controversy
Harmless Econometrics: An Empiricist's Companion.
13- Union relative wage effects; Freeman, Richard, and James

14 bargaining and efficient contracts Medoff. What Do Unions Do? Basic Books, 1986. ISBN:
9780465091348.
Lewis, H. Gregg. Union Relative
Wage Effects: A Survey. University of Chicago Press,
1986. ISBN: 9780226477213.
Farber, Henry. "The Analysis of
Union Behavior." In The Handbook of Labor Economics.
Vol. 2. Edited by Orley Ashenfelter, and Richard Layard.
North Holland, 1987. ISBN: 9780444878571.
Brown, James N., and Orley Ashenfelter. "Testing the
Efficiency of Employment Contracts." Journal of Political
Economy 94, no. 3 (1986): S40-S87.
Jakubson, George. "Estimation and Testing of the Union
Wage Effect Using Panel Data." Review of Economic
Studies 58, no. 5 (1991): 971-991.
DiNardo, John Enrico, and David S. Lee. "Economic
Impacts of New Unionization on US Private Sector
Employers: 1984-2001." Quarterly Journal of Economics
119, no. 4 (2004): 1383-1441. ( PDF - 1.7MB)
Lee, David, and Alexandre Mas. "Long-run Impacts of
Unions on Firms: New Evidence from Financial Markets."
National Bureau of Economic Research, Working Paper
14709, February 2009.
Frandsen, Brigham. "Union Wage Setting and the
Distribution of Employee Earnings: Evidence from
Certification Elections." MIT Manuscript, summer 2010. (
PDF)
Pischke. "Getting a Little Jumpy: Regression
Discontinuity." Chapter 6 in Mostly Harmless
Econometrics: An Empiricist's Companion. Princeton
IV. Human Capital
Mincer, Jacob. Schooling,

Experience, and Earnings. National Bureau of Economics
Research, 1974. ISBN: 9780870142659.
Becker, Gary. Human Capital.
University of Chicago Press, 1994. ISBN: 9780226041209.
Willis, Richard J. "Wage
Determinants: A Survey and Reinterpretation of Human
Capital Earnings Functions." Chapter 10 in The Handbook
of Labor Economics. Vol. 2. Edited by Orley Ashenfelter,
and Richard Layard. North Holland, 1987. ISBN:
9780444878571.
Ben-Porath, Yoram. "The Production of Human Capital
Over the Life Cycle.'' Journal of Political Economy 75, no.
4-1 (1967): 352-365.
Willis, Robert J., and Sherwin Rosen. "Education and Self-
Schooling experience and earnings; Selection." Journal of Political Economy 87, no. 5, part 2
15
basic theory; ability bias (1979): S7-S36. ( PDF - 1.2MB)
Freeman, Richard. "Demand for
Education." Chapter 6 in The Handbook of Labor
9780444878571.
Angrist, Joshua. "The Economic Returns to Schooling in
the West Bank and Gaza Strip." American Economic
Review 85, no. 5 (1995): 1065-1087.
Lang, Kevin, and David Kropp. "Human Capital Versus
Sorting: The Effects of Compulsory Attendance Laws."
Quarterly Journal of Economics 101 (1986): 609-624.
Tyler, John, Richard J. Murnane, and John Willett.
"Estimating the Labor Market Signaling value of the
GED." Quarterly Journal of Economics 115 (2008): 431-
468.
16- Signaling; returns to schooling Griliches, Zvi, and William Mason. "Education, Income,
17 econometrics and Ability." Journal of Political Economy 80, no. 3
(1972): S74-S103.
Griliches, Zvi. "Estimating the Returns to Schooling: Some
Econometric Problems." Econometrica 45, no. 1 (1977):
1-22.
Angrist, Joshua, and Alan Krueger. "Does Compulsory
Schooling Attendance Affect Schooling and Earnings?"
Quarterly Journal of Economics 106, no 4. (1991): 979-
1014.
Lang, Kevin. "Ability Bias, Discount Rate Bias, and the
Returns to Schooling." Boston University Mimeo, 1993. (
PDF)
Card, David. "Earnings, Schooling, and Ability Revisited."
4832, 1994. ( PDF - 1.3MB)
———. "The Causal Effect of
Education on Earnings." In The Handbook of Labor
Economics. Vol. 3. 3 volume set, vols. 3A, 3B, and 3C.
Edited by Orley Ashenfelter, and David Card. North
Holland, 1999. ISBN: 9780444822895.
Kling, Jeffrey. "Interpreting Instrumental Variables
Estimates of the Returns to Schooling." Journal of
Business and Economic Statistics 19, no. 3 (2001): 358-
364. ( PDF)
Card, D. "Estimating the Return to Schooling: Progress on
Some Persistent Econometric Problems." Econometrica,
69, no. 5 (2001): 1127-1160
Oreopoulos, Philip. "Estimating Average and Local
Average Treatment Effects of Education when
Compulsory Schooling Laws really Matter." American
Economic Review 96, no. 1 (2006): 152-175.
18 Returns to experience and on-the-job Jovanovic, Boyan. "Firm-Specific Capital and Turnover."
training (OJT) Journal of Political Economy 87, no. 6 (1979): 1246-1260.
Altonji, Joseph, and Robert Shakotko. "Do Wages Rise
with Job Seniority?" Review of Economic Studies 54, no. 3
(1987): 437-459.
Topel, Robert. "Specific Capital, Mobility, and Wages:
Wages Rise with Job Seniority." Journal of Political
Economy 99, no. 1 (1991): 145-176
Topel, Robert, and Michael Ward. "Job Mobility and the
Careers of Young Men." Quarterly Journal of Economics
107, no. 2 (1992): 439-479.
Lazear, Edward
P. Personnel Economics. MIT Press, 1995. ISBN:
9780262121880 (Read chapter 7).
Angrist, Joshua. "Lifetime Earnings and the Vietnam Era
Draft Lottery: Evidence from Social Security
Administrative Records." American Economic Review 80,
no. 3 (1990): 313-336.
Angrist, Joshua, and Stacey Chen. "Long-Term
Consequences of Vietnam-Era Conscription: Schooling,
Experience and Earning." IZA Discussion Paper 3628,
2008. ( PDF)
Acemoglu, Daron, and Stephen Pischke. "Beyond Becker:
Training in Imperfect Labor Markets." Economic Journal
109, no. 453 (1999): F112-142. (PDF)
Autor, David H. "Why do Temporary Help Firms Provide
Free General Skills Training?" Quarterly Journal of
Economics 116, no. 3 (2001): 1409-1448. ( PDF)
Jacobson, Louis, Robert LaLonde, and Daniel Sullivan.
"Earning Losses of Displaced Workers." American
Economic Review 83 (1993): 685-709.
Von Wachter, Till, Jae Song, and Joyce Manchester.
"Long-Terms Earnings Losses due to Mass Layoffs during
the 1982 Recession: An Analysis Using U.S.
Administrative Data from 1974 to 2004." Columbia Dept
of Economics, 2009.
19 Education production: school inputs, Card, David, and Alan Krueger. "Does School Quality
school quality, student and teacher Matter? Returns to Education and the Characteristics of
incentives Public Schools in the United States." Journal of Political
Economy 100, no. 1 (1992): 1-40
———. "School Quality and Black-White Relative
Earnings: A Direct Assessment." The Quarterly Journal of
Economics 107, no. 1 (1992): 151-200.
Welch, F. "Black-White Differences in Returns to
Schooling." The American Economic Review 63, no. 5
(1973): 893-907.
Angrist, Joshua, and Victor Lavy. "Using Maimonides'
Rule to Estimate the Effect of Class Size on Student
Achievement." Quarterly Journal of Economics 114, no. 2
(1999): 533-575. ( PDF)
Krueger, Alan. "Experimental Estimates of Education
Production Functions." Quarterly Journal of Economics
114, no. 2 (1999): 497-532.
Angrist, Joshua, and J. Guryan. "Does Teacher Testing
Raise Teacher Quality? Evidence from State Certification
Requirements." Economics of Education Review 27, no. 5
(2008): 483-503.
Duflo, Esther. "Schooling and Labor Market
Consequences of School Construction in Indonesia:
Evidence from an Unusual Policy Experiment." American
Economic Review 91 (2001): 795-813. ( PDF)
Angrist, Joshua, and Victor Lavy. "New Evidence on
Classroom Computers and Pupil Learning." The Economic
Journal 112 (2002): 735-765. ( PDF)
Incentives
Angrist, Joshua, and Victor Lavy. "The Effects of High
Stakes High School Achievement Awards: Evidence from
a Randomized Trial." American Economic Review 99, no.
4 (2009): 1384-1414. ( PDF)
Angrist, Joshua, and Philip Oreopoulos. "Incentives and
Services for College Achievement: Evidence from a
Randomized Trial." American Economic Journal: Applied
Economics 1, no. 1 (2009): 136–63.
Kremer, Michael, Edward Miguel, and Rebecca Thornton.
"Incentives to Learn." The Review of Economics and
Statistics 91, no. 3 (2009): 437-456.
Lavy, Victor. "Performance Pay and Teachers' Effort,
Productivity, and Grading Ethics." The American
Fryer, Roland. "Financial Incentives and Student
Achievement: Evidence from Randomized Trials."
15898, April 2010.
Duflo, Esther, Rema Hanna, and Stephen Ryan.
"Incentives Work: Getting Teachers to Come to School."
MIT Mimeo, May 2010. ( PDF)
Hoxby, Caroline. "Does Competition among Public

Schools Benefit Students and Taxpayers?" American
Economic Review 90, no. 5 (2000): 1209-1238.
Rothstein, Jesse. "Does Competition Among Schools
Benefit Students and Taxpayers? A Comment on Hoxby
(2000)." American Economic Review 97, no. 5 (2007):
2026-2037.
Angrist, Joshua, Eric Bettinger, Erik Bloom, Elizabeth King,
and Michael Kremer. "Vouchers for Private Schooling in
Colombia: Evidence from a Randomized Natural
Experiment." American Economic Review (2002): 1535-
1558. ( PDF)
Neal, Derek, and Diane Schanzenbach. "Left Behind by
Design: Proficiency Counts and Test-Based
Accountability." National Bureau of Economic Research
Working Paper 13293, August 2007.
Guryan, Jonathan. "Desegregation and Black Dropout
20 Competition and regulation Rates." American Economic Review 94, no. 4 (2004): 919-
943.
Rothstein, Jesse. "Good Principals or Good Peers?
Parental Valuation of School Characteristics, Tiebout
Equilibrium, and the Incentive Effects of Competition
Among Jurisdictions." American Economic Review 96, no.
4 (2006): 1333-1350. ( PDF)
Clark, Damon. "The Performance and Competitive Effects
of School Autonomy." Journal of Political Economy 117,
no. 4 (2009): 745-783.
Cullen, Julie Berry, Brian A. Jacob, and Steven Levitt. "The
Effect of School Choice on Student Outcomes: Evidence
from Randomized Lotteries." Econometrica 74, no. 5
(2006): 1191-1230.
Angrist, Joshua, et al. "Accountability and Flexibility in
Public Schools: Evidence from Boston's Charters and
Pilots." National Bureau of Economic Research Working
Paper 15549, November 2009.
21 Human capital policy; higher Schweinhart, Lawrence J., W. Steven

education Barnett, and Clive Belfield. Lifetime Effects: The
HighScope Perry Preschool Study Through Age 40.
High/Scope Press, 2005. ISBN: 9781573792523.
Anderson, Michael. "Multiple Inference and Gender
Differences in the Effects of Early Intervention: A
Reevaluation of the Abecedarian, Perry Preschool, and
Early Training Projects." Journal of the American
Statistical Association 103, no. 484 (2008): 1481-1495.
Heckman,
James, and Alan Krueger. Inequality in America: What
Role for Human Capital Policies? MIT Press, 2004. ISBN:
9780262582605.
Ludwig, Jens, and Douglas Miller. "Does Head Start
Improve Children's Life Chances? Evidence from a
Regression Discontinuity Design." Quarterly Journal of
Economics 122 (2007): 159-208.
Head Start Impact Study: Final Report. US Department of
Health and Human Services, 2010. ( PDF - 4.3MB)
Fryer, Roland, and Will Dobbie. "Are High Quality Schools
Enough to Close the Achievement Gap? Evidence from a
Social Experiment in Harlem." National Bureau of
Economic Research Working Paper 15473, November
2009. ( PDF - 1.3MB)
Kane, Thomas, and Douglas Staiger. "Estimating Teacher
Impacts on Student Achievement: An Experimental
Evaluation." National Bureau of Economic Research
Working Paper 14607, December 2008.
Rothstein, Jesse. "Teacher Quality in Education
Production: Tracking, Decay and Achievement."
214. ( PDF)
Higher Education
Kane, Thomas, and Cecilia Rouse. "Labor Market Returns
to Two- and Four-Year College." American Economic
Review 85, no. 3 (1995): 600-614.
Dale, S., and Alan Krueger. "Estimating the Payoff to
Attending a More Selective College: An Application of
Selection on Observables and Unobservables." Quarterly
Journal of Economics 117, no. 4 (2002): 1491-1527.
Dynarksi, Susan. "Does Aid Matter? Measuring the Effect
of Student Aid on College Attendance and Completion."
(PDF)
22- Evaluation of government training LaLonde, Robert. "The Promise of Public Sector Training
23 programs Programs." Journal of Economic Perspectives 9, no. 2
(1995): 149-168.
Orr, Larry, Howard Bloom, Stephen
Bell, Fred Doolittle, and Winston Lin. Does Training for
the Disadvantaged Work? Evidence from the National
JTPA Study. University Press of America, 1996. ISBN:
9780877666479.
Ashenfelter, Orley. "Estimating the Effect of Training
Programs on Earnings." The Review of Economics and
Statistics 60 (1978): 47-57.
Ashenfelter, Orley, and David Card. "Using the
Longitudinal Structure of Earnings to Estimate the Effect
of Training Programs on Earnings." The Review of
LaLonde, Robert. "Evaluating the Econometric
Evaluations of Training Programs with Experimental
Data." American Economic Review 76 (1986): 604-620.
Heckman, James, and Joseph Hotz. "Choosing Among
Alternative Non-experimental Methods for Estimating
the Impact of Social Programs: The Case of Manpower
Training." Journal of the American Statistical Association
84, no. 408 (1989): 862-874.
Dehejia, Rajeev, and Sadek Wahba. "Causal Effects in
Nonexperimental Studies: Re-evaluating the Evaluation
of Training Programs." Journal of the American Statistical
Association 94, no. 448 (1999): 1053-1062.
Smith, Jeffrey, and Petra Todd. "Does Matching
Overcome LaLonde's Critique of Nonexperimental
Estimators?" Journal of Econometrics 125, no. 1-2 (2005):
305-353. ( PDF)
24 Externalities and peer effects Acemoglu, Daron. "A Microfoundation for Social
Increasing Returns in Human Capital Accumulation."
804.
Acemoglu,
Daron, and Joshua Angrist. "How Large are Human-
Capital Externalities? Evidence from Compulsory
Schooling Laws." In NBER Macroeconomics Annual 2000.
Edited by Ben Bernanke and Kenneth Rogoff. MIT Press,
2001. ISBN: 9780262523141.
Sacerdote, Bruce. "Peer Effects with Random
Assignment: Results from Dartmouth Roommates."
Quarterly Journal of Economics 116 (2001): 681-704.
Zimmerman, David. "Peer Effects in Higher Education:
Evidence from a Natural Experiment." Review of
Oreopoulos, Philip. "The Long-run Consequences of
Living in a Poor Neighborhood." Quarterly Journal of
Economics 118, no. 4 (2003): 1533-1575. ( PDF)
Kremer, Michael, and Dan Levy. "Peer Effects and Alcohol
use Among College Students." Journal of Economic
Perspectives 22, no. 3 (2008): 189-206.
Angrist, Joshua, and Kevin Lang. "How Important are
Classroom Peer Effects? Evidence from Boston's METCO
Program." American Economic Review 94 (2004): 1613-
1634.
Duflo, Esther, Pascaline Dupas, and Michael Kremer.
"Peer Effects, Teacher Incentives, and the Impact of
Tracking: Evidence from a Randomized Evaluation in
Kenya." National Bureau of Economic Research Working
Paper 14475, November 2008.
Moretti, Enrico. "Estimating the Social Return to Higher
Education: Evidence from Longitudinal and Repeated
Cross-Section Data." Journal of Econometrics 121, no. 1-2
(2004): 175-212.
Mas, Alexandre, and Enrico Moretti. "Peers at Work."
Kling, Jeffrey, Jeffrey B. Liebman, and Lawrence F. Katz.
"Experimental Analysis of Neighborhood Effects."
Econometrica 75 (2007): 83-119.
Angrist, Joshua and Jorn-Steffen
Pischke. Mostly Harmless Econometrics: An Empiricist's
Companion. Princeton University Press, 2008. ISBN:
9780691120355. (Read section 4.6.2)
V. Discrimination
Becker, Gary. The Economics of

Discrimination. 2nd ed. University of Chicago Press, 1971.
ISBN: 9780226041162.
Lang, Kevin. Poverty and
Discrimination. Princeton University Press, 2007. ISBN:
9780691119540.
Aigner, Dennis, and Glen Cain. "Statistical Theories of
Discrimination in Labor Markets." Industrial and Labor
Relations Review 20, no. 2 (1977): 175-187. ( PDF)
Autor, David, and D. Scarborough. "Does Job Testing
Harm Minority Workers? Evidence from Retail
25 Theory; wage gaps Establishments." Quarterly Journal of Economics 123
(2008): 219-277.
Wage Gaps
Smith, James, and Finis Welch. "Black Economic Progress
after Myrdal." Journal of Economic Literature 27, no. 2
(1989): 519-564.
Neal, Derek. "The Measured Black-White Wage Gap
among Women is Too Small." Journal of Political
Economy 112, no. S1 (2004): S1-S28. ( PDF)
Mulligan, Casey, and Yona Rubinstein. "Selection,
Investment, and Women's Relative Wages Over Time."
1110.
26 Anti-discrimination policy Leonard, J. "The Impact of Affirmative Action on

Employment." Journal of Labor Economics 2 (1984): 439-
177.
Heckman, James, and B. Payner. "Determining the
Impact of Federal Anti-discrimination Policy on the
Economic Status of Blacks: A Study of South Carolina."
American Economic Review 79 (1989): 138-177.
Donohue, John, and James Heckman. "Continuous v.
Episodic Change: the Impact of Civil Rights Policy on the
Economic Status of Blacks." Journal of Economic
Literature 29, no. 4 (1991): 1603-1643.
Angrist, Joshua, and Daron Acemoglu. "Consequences of
Employment Protection? The Case of the Americans with
Disabilities Act." Journal of Political Economy 109, no. 5
(2001): 915-957.
Chay, K. "The Impact of Federal Civil Rights Policy on
Black Economic Progress: Evidence from the Equal
Employment Opportunity Act of 1972." Industrial and
Labor Relations Review 51, no. 4 (1998).
McCrary, J. "The Effect of Court-Order Hiring Quotas on
the Composition and Quality of Police." American
Economic Review 97 no. 1 (2008): 318-353.
1RA PARTE LABOR ECONOMICS I
TOPICS READINGS
I. Moral hazard and agency
*Prendergast, C. "The Provision of Incentives in Firms." Journal of Economic Literature

Moral hazard and 37, no. 1 (March 1999): 7-63.
agency *Acemoglu, D. "Incentives, Agency Theory, and Efficiency Wages." Part 2 of Lecture
Notes for Graduate Labor Economics (mimeo).
Static single agent Holmström, B. "Moral Hazard and Observability." Bell Journal of Economics 10, no. 1
models (1979): 74-91.
Holmström, B., and P. Milgrom. "Aggregation and Linearity in the Provision of

Intertemporal Incentives." Econometrica 55, no. 2 (1987): 303-328.
*Lazear, E. "Performance Pay and Productivity." American Economic Review 90, no. 5
(December 2000): 1346-1391.
Shearer, B. "Piece Rates, Fixed Wages and Incentives: Evidence from a Field
Experiment." Review of Economic Studies 71 (April 2004): 513-534.
Asch, B. "Do Incentives Matter? The Case of Navy Recruiters." Industrial and Labor
Relations Review 43, no. 3, Special Issue: Do Compensation Policies Matter? (1990):
89S-106S.
Oyer, P. "Fiscal Year Ends and Nonlinear Incentive Contracts: The Effect on Business
Seasonality." Quarterly Journal of Economics 113, no. 1 (February 1998): 149-185.
Levitt, S., and B. Jacob. "Rotten Apples: An Investigation of the Prevalence and
Predictors of Teacher Cheating." Quarterly Journal of Economics 118, no. 3 (August
2003): 843-877.
Ackerberg, D., and M. Botticini. "Endogenous Matching and the Empirical
Determinants of Contract Form." Journal of Political Economy 110, no. 3 (June 2002):
564-591.
Jensen, M., and K. Murphy. "Performance Pay and Top Management Incentives."
Journal of Political Economy 98, no. 2 (April 1990): 225-264.
Aggarwal, R., and A. Samwick. "The Other Side of the Trade-Off: The Impact of Risk on
Executive Compensation." Journal of Political Economy 107, no. 1 (February 1999): 65-
105.
*Prendergast, C. "The Tenuous Trade-off Between Risk and Incentives." Journal of
Political Economy 110, no. 5 (October 2002): 1071-1102.
Frey, B., and F. Oberholzer-Gee. "The Cost of Price Incentives: An Empirical Analysis of
Motivation Crowding-Out." American Economic Review 87, no. 4 (September 1997):
746-755.
Gneezy, U., and A. Rustichini. "Pay Enough or Don't Pay at All." Quarterly Journal of
Economics 115, no. 3 (August 2000): 791-810.
Nagin, D., J. Rebitzer, S. Sanders, and L. Taylor. "Monitoring, Motivation, and
Intrinsic Management: The Determinants of Opportunistic Behavior in a Field Experiment."
motivation American Economic Review 92, no. 4 (September 2002): 850-873.
Fehr, E., and S. Gächter. "Do Incentive Contracts Crowd Out Voluntary Cooperation?"
Center for Economic Policy Research Discussion Paper No. 3017, October 2001.
Falk, A., and M. Kosfeld. "The Hidden Costs of Control." American Economic Review
96, no. 5 (December 2006): 1611-1630.
Besley, T., and M. Ghatak. "Competition and Incentives with Motivated Agents."
American Economic Review 95, no. 3 (June 2005): 616-636.
Kerr, S. "On the Folly of Rewarding A, While Hoping for B." Academy of Management
Journal 18, no. 4 (December 1975): 769-783.
Holmström, B., and P. Milgrom. "Multi-Task Principal Agent Analysis: Incentive
Contracts, Asset Ownership, and Job Design." Journal of Law Economics and
Organization 7, Special Issue: Papers from the Conference on the New Science of
Organization (1991): 24-52.
Milgrom, P., and J. Roberts. "Complementarities and Fit. Strategy, Structure, and
Organizational Change in Manufacturing." Journal of Accounting and Economics 19
Multiple tasks
(March-May 1995): 179-208, especially section 5.
Brickley, J., and J. Zimmerman. "Changing Incentives in a Multitask Environment:
Evidence from a Top-tier Business School." Journal of Corporate Finance 7 (December
2001): 367-396.
Jacob, B. "Accountability, Incentives and Behavior: Evidence from School Reform in
Chicago." Journal of Public Economics 89 (2005): 761-796.
Cockburn, I., R. Henderson, and S. Stern. "Balancing Incentives in Pharmaceutical
Research." mimeograph, MIT, 2004.
Multiple agents Holmström, B. "Moral Hazard in Teams." Bell Journal of Economics 13, no. 2 (1982):
324-340.
Lazear, E., and S. Rosen. "Rank-Order Tournaments as Optimum Labor Contracts."
Journal of Political Economy 89, no. 5 (October 1981): 841-864.
Gaynor, M., and M. Pauly. "Compensation and Productive Efficiency in Partnerships:
Evidence from Medical Groups Practice." Journal of Political Economy 98, no. 3 (June
1990): 544-573.
Gaynor, M., J. Rebitzer, and L. Taylor. "Physician Incentives in HMOs." Journal of
Political Economy 112, no. 4 (August 2004): 915-931.
Ehrenberg, R., and M. Bognanno. "The Incentive Effects of Tournaments Revisited:
Evidence from the European PGA Tour." Industrial and Labor Relations Review 43,
Special Issue (February 1990): 74S-88S.
Eriksson, T. "Executive Compensation and Tournament Theory: Empirical Tests on
Danish Data." Journal of Labor Economics 17, no. 2 (April 1999): 262-280.
Gibbons, R., and K. Murphy. "Relative Performance Evaluation for CEOs." Industrial
and Labor Relations Review 43, Special Issue (February 1990): 30S-51S.
Duggan, M., and S. Levitt. "Winning Isn't Everything: Corruption in Sumo Wrestling."
American Economic Review 92, no. 5 (December 2002): 1594-1605.
Kandel, E., and E. Lazear. "Peer Pressure and Partnerships." Journal of Political
Economy 100, no. 4 (1992): 801-817.
Knez, M., and D. Simister. "Firm-Wide Incentives and Mutual Monitoring at
Continental Airlines." Journal of Labor Economics 19, no. 4 (2001): 743-772.
Hamilton, B., J. Nickerson, and H. Owan. "Team Incentives and Worker Heterogeneity:
An Empirical Analysis of the Impact of Teams on Productivity and Participation."
Journal of Political Economy 111, no. 3 (June 2003): 465-497.
Falk, A., and A. Ichino. "Clean Evidence on Peer Effects." Journal of Labor Economics
24, no. 1 (January 2006): 39-57.
Mas, A., and E. Moretti. "Peers at Work." National Bureau of Economic Research
Working Paper No. 12508, September 2006, pp. 1-51.
Bandiera, O., I. Barankay, and I. Rasul. "Social Preferences and the Response to
Incentives: Evidence from Personnel Data." Quarterly Journal of Economics 120, no. 3
(August 2005): 917-962.
Lazear, E. "Why Is There Mandatory Retirement?" Journal of Political Economy 87, no.
6 (December 1979): 1261-84.
Holmström, B. "Managerial Incentive Schemes - A Dynamic
Perspective." In Vetenskap och företagsledning: studier i ekonomi och ledarskap
tillägnade Lars Wahlbeck (Essays in Economics and Management in the Honor of Lars
Wahlbeck). Helsingfors, Sweden: Svenska handelshögskolan, 1982. ISBN:
Dynamic agency 9789515551580.
———. "Managerial Incentive Problems: A Dynamic Perspective." The Review of
Economic Studies 66, no. 1, Special Issue: Contracts (January 1999): 169-182.
Gibbons, R., and K. Murphy. "Optimal Incentive Contracts in the Presence of Career
Concerns: Theory and Evidence." Journal of Political Economy 100, no. 3 (1992): 468-
505.
Chevalier, J., and G. Ellison. "Career Concerns of Mutual Fund Managers." Quarterly
Journal of Economics 114, no. 2 (May 1999): 389-432.
Efficiency wages *Shapiro, C., and J. Stiglitz. "Equilibrium Unemployment as a Worker Discipline
Device." American Economic Review 74, no. 3 (1984): 433-444.
Bulow, J., and L. Summers. "A Theory of Dual Labor Markets with Applications to
Industrial Policy, Discrimination, and Keynesian Unemployment." Journal of Labor
Economics 4, no. 3 (1986): 376-415.
Krueger, A. "Ownership, Agency, and Wages: An Examination of Franchising in the Fast
Food Industry." Quarterly Journal of Economics 106, no. 1 (1991): 75-101.
Holzer, H., L. Katz, and A. Krueger. "Job Queues and Wages." Quarterly Journal of
Cappelli, P., and K. Chauvin. "An Interplant Test of the Efficiency Wage Hypothesis."
Quarterly Journal of Economics 106, no. 3 (1991): 769-787.
*Bewley, T. Why Wages Don't Fall During a Recession. Cambridge,
MA: Harvard University Press, 1999, sections 7.1 and 11.2, pp. 87-92, 173-180. ISBN:
9780674952416.
Fehr, E., G. Kirchsteiger, and A. Riedl. "Does Fairness Prevent Market Clearing? An
Experimental Investigation." Quarterly Journal of Economics 108, no. 2 (1993): 437-
460.
Gneezy, U., and J. List. "Putting Behavioral Economics to Work: Field Evidence on Gift
Exchange." Econometrica 74, no. 5 (September 2006): 1365-1384.
II. Employer wage differentials
*Krueger, A., and L. Summers. "Efficiency Wages and the Inter-industry Wage
Structure." Econometrica 56, no. 2 (March 1988): 259-293.
Katz, L., and L. Summers. "Industry Rents: Evidence and Implications." Brookings
Papers on Economic Activity, Special Issue (1989): 209-275.
Brown, C., and J. Medoff. "The Employer Size Wage Effect." Journal of Political
Economy 97, no. 5 (October 1989): 1027-1059.
Murphy, K., and R. Topel. "Efficiency Wages Reconsidered: Theory
and Evidence." In Advances in the Theory and Measurement of Unemployment. Edited
by Y. Weiss and G. Fishelson. New York, NY: St. Martin's Press, 1990. ISBN:
9780312027971.
Industry and firm Neal, D. "Industry-Specific Human Capital: Evidence from Displaced Workers." Journal
size differentials of Labor Economics 13, no. 4 (October 1995): 653-677.
*Gibbons, R., and L. Katz. "Does Unmeasured Ability Explain Inter-Industry Wage
Differentials?" Review of Economic Studies 59, no. 3 (July 1992): 515-535.
Gibbons, R., L. Katz, T. Lemieux, and D. Parent. "Comparative Advantage, Learning,
and Sectoral Wage Determination." Journal of Labor Economics 23, no. 4 (2005): 681-
723.
Bertrand, M., and S. Mullainathan. "Enjoying the Quiet Life? Corporate Governance
and Managerial Preferences." Journal of Political Economy 111, no. 5 (October 2003):
1043-1075.
Abowd, J., F. Kramarz, and D. Margolis. "High Wage Workers and High Wage Firms."
Econometrica 67, no. 2 (March 1999): 251-333.
Compensating Rosen, S. "The Theory of Equalizing Differences." In Handbook of

differentials Labor Economics. Vol. 1. Edited by Orley Ashenfelter and P. R. G. Layard. New York,
NY: Elsevier, 1986. ISBN: 9780444878564.
*Brown, C. "Equalizing Differences in the Labor Market." Quarterly Journal of
Economics 94, no. 1 (February 1980): 113-134.
Abowd, J., and O. Ashenfelter. "Temporary Layoffs, Anticipated
Unemployment and Compensating Wage Differentials." In Studies in Labor Markets.
Edited by S. Rosen. Chicago, IL: University of Chicago Press, 1981, pp. 141-170. ISBN:
9780226726281.
Murphy, K., and R. Topel. "Unemployment, Risk, and Earnings:
Testing for Equalizing Differences in the Labor Market." In Unemployment and the
Structure of Labor Markets. Edited by K. Lang and J. Leonard. New York, NY: Blackwell,
1987, pp. 103-140. ISBN: 9780631153788.
Gruber, J. "The Incidence of Mandated Maternity Benefits." American Economic
Review 84, no. 3 (June 1994): 622-641.
Fishback, P., and S. Kantor. "Did Workers Pay for the Passage of Workers'
Compensation Laws?" Quarterly Journal of Economics 110, no. 3 (August 1995): 713-
742.
Stern, S. "Do Scientists Pay to be Scientists?" Management Science 50, no. 6 (June
2004): 835-853.
Krueger, A. B., and L. H. Summers. "Reflections on the Inter-
industry Wage Structure." In Unemployment and the Structure of Labor Markets.
Edited by K. Lang and J. S. Leonard. New York, NY: B. Blackwell, 1987. ISBN:
9780631153788.
III. Discrimination and differentials by race and gender
Discrimination Altonji, J., and R. Blank. "Race and Gender in the Labor Market."
and differentials In Handbook of Labor Economics. Vol. 3C. Edited by O. Ashenfelter and D. Card. New
by race and York, NY: Elsevier, 1999, chapter 48, pp. 3143-3259. ISBN: 9780444501899.
gender Becker, G. The Economics of Discrimination. 2nd ed. Chicago, IL:
Arrow, K. "The Theory of Discrimination." In Discrimination in
Labor Markets. Edited by O. Ashenfelter and A. Rees. Princeton, NJ: Princeton
University Press, 1973, pp. 3-33. ISBN: 9780691041704.
Smith, J., and F. Welch. "Black Economic Progress after Myrdal." Journal of Economic
Literature 27 (June 1989): 519-564.
*Donohue III, J., and J. Heckman. "Continuous versus Episodic Change: The Impact of
Civil Rights Policy on the Economic Status of Blacks." Journal of Economic Literature 29
(December 1991): 1603-1643.
Chay, K. "The Impact of Federal Civil Rights Policy on Black Economic Progress:
Evidence from the Equal Employment Opportunity Act of 1972." Industrial and Labor
Relations Review 51, no. 4 (July 1998): 608-632.
Juhn, C., K. Murphy, and B. Pierce. "Accounting for the Slowdown
in Black-White Wage Convergence." In Workers and Their Wages: Changing Patterns
in the United States. Edited by M. Kosters. Washington, DC: AEI Press, 1991, chapter 4,
pp. 107-143. ISBN: 9780844737478.
Card, D., and T. Lemieux. "Wage Dispersion, Returns to Skill and Black-White Wage
Differentials." Journal of Econometrics 74 (October 1996): 319-361.
Oaxaca, R. "Male-Female Wage Differentials in Urban Labor Markets." International
Economic Review 14, no. 3 (October 1973): 693-709.
Blinder, A. "Wage Discrimination: Reduced Form and Structural Estimates." Journal of
Human Resources 8, no. 4 (1973): 436-455.
Goldin, C. Understanding the Gender Gap: An Economic History of
American Women. New York, NY: Oxford University Press, 1992, chapter 4, pp. 83-
118. ISBN: 9780195050776.
Wood, R., M. Corcoran, and P. Courant. "Pay Differentials Among the Highly Paid: The
Male-Female Earnings Gap in Lawyer's Salaries." Journal of Labor Economics 11, no. 3
(1993): 417-441.
Neal, D., and W. Johnson. "The Role of Premarket Factors in Black-White Wage
Differences." Journal of Political Economy 104, no. 5 (1996): 869-895.
Mincer, J., and S. Polacheck. "Family Investments in Human Capital: Earnings of
Women." Journal of Political Economy 82, no. 2 (1974): S76-S110.
Polachek, S., and S. Siebert. "Gender in the Labour Market."
Chapter 6 in The Economics of Earnings. New York, NY: Cambridge University Press,
1992, pp. 137-173. ISBN: 9780521367288.
Altonji, Joseph G., and C. Pierret. "Employer Learning and Statistical Discrimination."
Quarterly Journal of Economics 116, no. 1 (February 2001): 313-350.
Black, S., and P. Strahan. "The Division of Spoils: Rent-Sharing and Discrimination in a
Regulated Industry." American Economic Review 91, no. 4 (September 2001): 814-831.
List, J. "The Nature and Extent of Discrimination in the Marketplace: Evidence from
the Field." Quarterly Journal of Economics 119, no. 1 (February 2004): 49-89.
Fershtman, C., and U. Gneezy. "Discrimination in a Segmented Society." Quarterly
Journal of Economics 116, no. 1 (February 2001): 351-377.
Goldin, C., and C. Rouse. "Orchestrating Impartiality: The Impact of Blind Auditions on
the Sex Composition of Orchestras." American Economic Review 90, no. 4 (September
2000): 715-41.
Bertrand, M., and S. Mullainathan. "Are Emily and Brendan More Employable than
Lakisha and Jamal? A Field Experiment on Labor Market Discrimination." American
Economic Review 94, no. 4 (September 2004): 991-1014.
Wolfers, J. "Diagnosing Discrimination: Stock Returns and CEO Gender." Journal of the
European Economic Association 4, nos. 2-3 (April/May 2006): 531-541.
*Babcock, L., and S. Laschever. Women Don't Ask: Negotiation
and the Gender Divide. Princeton, NJ: Princeton University Press, 2003, introduction,
pp. 1-16. ISBN: 9780691089409.
Gneezy, U., M. Niederle, and A. Rustichini. "Performance in Competitive
Environments: Gender Differences." Quarterly Journal of Economics 118, no. 3 (August
2003): 1049-1074.
Niederle, N., and L. Vesterlund. "Do Women Shy Away from Competition? Do Men
Compete too Much?" Forthcoming in Quarterly Journal of Economics (2007).
Paserman, D. "Gender Differences in Performance in Competitive Environments: Field
Evidence from Professional Tennis Players." mimeograph, Hebrew University, January
2007, pp. 1-42. ( PDF)
IV. Changes in the wage structure and inequality
The facts *Katz, L., and K. Murphy. "Changes in Relative Wages, 1963-1987: Supply and Demand
Factors." Quarterly Journal of Economics 107, no. 1 (February 1992): 35-78.
*Juhn, C., K. Murphy, and B. Pierce. "Wage Inequality and the Rise in Returns to Skill."
Journal of Political Economy 101, no. 3 (1993): 410-442.
Katz, L., and D. Autor. "Changes in the Wage Structure and
Earnings Inequality." In Handbook of Labor Economics. Vol. 3A. Edited by O.
Ashenfelter and D. Card. New York, NY: Elsevier, 1999, chapter 26, pp. 1463-1555.
ISBN: 9780444501875.
Goldin, C., and R. Margo. "The Great Compression: The Wage Structure in the United
States at Mid-Century." Quarterly Journal of Economics 107, no. 1 (February 1992): 1-
34.
Goldin, C., and L. Katz. "The Returns to Skill in the United States across the Twentieth
Century." National Bureau of Economic Research Working Paper No. 7126, May 1999,
pp. 1-51.
Piketty, T., and E. Saez. "Income Inequality in the United States, 1913 - 1998."
Quarterly Journal of Economics 118, no. 1 (February 2003): 1-39.
Frydman, C., and R. Saks. "Historical Trends in Executive Compensation, 1936 - 2003."
mimeograph, MIT, 2007.
*Autor, D., L. Katz, and M. Schettini Kearney. "Trends in U.S. Wage Inequality: Re-
Assessing the Revisionists." National Bureau of Economic Research Working Paper No.
11627, September 2005, pp. 1-60.
———. "The Polarization of the U.S. Labor Market." American Economic Review
Papers and Proceedings 96, no. 2 (May 2006): 189-194.
Lemieux, T. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or
Rising Demand for Skill?" American Economic Review 96, no. 3 (June 2006): 461-498.
Gottschalk, P., and R. Moffitt. "The Growth of Earnings Instability in the U.S. Labor
Market." Brookings Papers on Economic Activity 2 (1994): 217-272.
*Katz, L., and K. Murphy. "Changes in Relative Wages, 1963-1987: Supply and Demand
Factors." Quarterly Journal of Economics 107, no. 1 (February 1992): 35-78.
Explanations:
Supply and
11627, September 2005, pp. 1-60.
demand for skills
Card, D., and T. Lemieux. "Can Falling Supply Explain the Rising Return to College for
Younger Men? A Cohort-Based Analysis." Quarterly Journal of Economics 116, no. 2
(May 2001): 705-746.
*Acemoglu, D. "Technical Change, Inequality and the Labor Market." Journal of

Economic Literature 40 (March 2002): 7-72.
———. "Why do New Technologies Complement Skills: Directed Technical Change and
Wage Inequality." Quarterly Journal of Economics 113, no. 4 (November 1998): 1055-
1089.
Autor, D., L. Katz, and A. Krueger. "Computing Inequality: Have Computers Changed
the Labor Market." Quarterly Journal of Economics 113, no. 4 (November 1998): 1169-
Skill biased
1213.
technical and
Card, D., and J. DiNardo. "Skill Biased Technological Change and Rising Wage
organizational
Inequality: Some Problems and Puzzles." Journal of Labor Economics 20, no. 4 (2002):
change
733-783.
Autor, D., F. Levy, and R. Murnane. "The Skill Content of Recent Technological Change:
An Empirical Exploration." Quarterly Journal of Economics 118, no. 4 (November
2003): 1279-1333.
Bresnahan, T., E. Brynolfsson, and L. Hitt. "Information Technology, Workplace
Organization and the Demand for Skilled Labor: Firm-level Evidence." Quarterly
Journal of Economics 117, no. 1 (February 2002): 339-376.
Acemoglu, D. "Patterns of Skill Premia." Review of Economic Studies 70, no. 2 (2003):
199-230.
Berman, E., J. Bound, and S. Machin. "Implications of Skill-Biased Technological
Change: International Evidence." Quarterly Journal of Economics 113, no. 4
(November 1998): 1245-1280.
Feenstra, R., and G. Hanson. "The Impact of Outsourcing and High Technology Capital
on Wages: Estimates for the United States 1979 - 1990." Quarterly Journal of
International
trade and
———. "Global Production Sharing and Rising Inequality: A Survey of Trade and
immigration
Wages." National Bureau of Economic Research Working Paper No. 8372, July 2001,
pp. 1-66.
Krueger, A. "Labor Market Shifts and the Price Puzzle Revisited." National Bureau of
Economic Research Working Paper No. 5924, February 1997, pp. 1-32.
Borjas, G. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of
Immigration on the Labor Market." Quarterly Journal of Economics 118, no. 4
(November 2003): 1335-1374.
Labor market DiNardo, J., N. Fortin, and T. Lemieux. "Labor Market Institutions and the Distribution
institutions and of Wages, 1973-1992: A Semiparametric Approach." Econometrica 64, no. 5
(September 1996): 1001-1044.
Lee, D. "Wage Inequality in the U.S. During the 1980's: Rising Dispersion or Falling
Minimum Wage." Quarterly Journal of Economics 114, no. 3 (August 1999): 941-1024.
wage 11627, September 2005, pp. 1-60.
compression Card, D. "The Effect of Unions on the Distribution of Wages: Redistribution or
Relabelling?" National Bureau of Economic Research Working Paper No. 4195,
October 1992, pp. 1-61.
Acemoglu, D., P. Aghion, and G. Violante. "Deunionization, Technical Change, and
Inequality." Carnegie-Rochester Conference Series on Public Policy (February 2001): 1-
37.
Organisation for Economic Co-operation and Development (OECD). "Earnings

Inequality: Changes in the 1980s." Chapter 5 in OECD Employment Outlook 1993.
Paris, France: OECD. pp. 157-184.
Piketty, T., and E. Saez. "The Evolution of Top Incomes: A Historical and International
Perspective." American Economic Review Papers and Proceedings 96, no. 2 (May
2006): 200-205.
Blau, F., and L. Kahn. "International Differences in Male Wage Inequality: Institutions
versus Market Forces." Journal of Political Economy 104, no. 4 (August 1996): 791-837.
Leuven, E., H. Oosterbeek, and H. van Ophem. "Explaining International Differences in
Male Skill Wage Differentials by Differences in Demand and Supply of Skill." Economic
Journal 114 (April 2004): 466-486.
Blau, F., and L. Kahn. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?"
Review of Economics and Statistics 87, no. 1 (February 2005): 184-193.
Krugman, P. "Past and Prospective Causes of High Unemployment." In Reducing
International
Unemployment: Current Issues and Policy Options, A Symposium, Jackson Hole,
evidence
Wyoming, August 24-27, 1994. Kansas City, MO: Federal Reserve Bank of Kansas City,
1994, pp. 23-43.
Nickell, S., and B. Bell. "The Collapse in Demand for the Unskilled and Unemployment
across the OECD." Oxford Review of Economic Policy 11, no. 1 (1995): 40-62.
Card, D., F. Kramarz, and T. Lemieux. "Changes in the Relative Structure of Wages and
Employment: A Comparison of the United States, Canada, and France." Canadian
Journal of Economics 32, no. 4 (August 1999): 843-877.
Acemoglu, D. "Cross-country Inequality Trends." Economic Journal 113 (February
2003): F121-F149.
Pischke, J.-S. "Labor Market Institutions, Wages, and Investment: Review and
Implications." CESifo Economic Studies 51 (January 2005): 47-75.
Beaudry, P., and D. Green. "Wages and Employment in the United States and
Germany: What Explains the Differences?" American Economic Review 93, no. 3 (June
2003): 573-602.
2DA PARTE LABOR ECONOMICS II
TOPICS READINGS
I. Introduction and overview

Osterman, Paul, Thomas Kochan, Richard Locke, and Michael Piore.
Working in America: A Blueprint for the New Labor Market. Cambridge, MA: MIT Press,
2001, chapters 1 and 2, pp. 1-56. ISBN: 9780262151054.
Piore, Michael, and Sean Safford. "Changing Regimes of Workplace Governance: Shifting
Axes of Social Mobilization and the Challenge to Industrial Relations Theory." Industrial
Relations: A Journal of Economy and Society 45, no. 3 (2006): 299-325.
Introduction Berger, Peter, and Thomas Luckman. "From the Social Construction
and overview of Reality: A Treatice in the Sociology of Knowledge." In The New Economic Sociology.
Edited by Frank Dobbin. Princeton, NJ: Princeton University Press, 2004, pp. 325-348
and 496-517. ISBN: 9780691049069.
Additional recommended reading
Mishel, Lawrence, Jared Bernstein, and Sylvia Allegretto. The State
of Working America 2004/2005. Ithaca, NY: Cornell University Press, 2005. ISBN:
9780801489624.
II. Worker motivation and behavior
McKenna, Richard. The Sand Pebbles. New ed. Annapolis, MD: U.S.
Naval Institute Press, 2000, pp. 143-149. ISBN: 9781557504463.
Bloch, Marc. "The Characteristics of Customary Law." In Feudal
Society. Vol. 1. Chicago, IL: University of Chicago Press, 1961, chapter 2, pp. 113-116.
Worker ISBN: 9780226059785.
motivation and Winograd, Terry, and Fernando Flores. Understanding Computers
behavior and Cognition: A New Foundation for Design. Reading, MA: Addison-Wesley, 1987, pp.
14-37. ISBN: 9780201112979.
Fehr, Ernst, Urs Fischbacher, and Michael Kosfeld. "Neuroeconomic Foundations of
Trust and Social Preferences." Center for Economic Policy Research Discussion Paper No.
5127 (forthcoming in American Economic Review).
III. Technology, Job Characteristics, and Structure
Technology, job Autor, David H., Frank Levy, and Richard J. Murnane. "The Skill Content of Recent
characteristics, Technological Change: An Empirical Exploration." Quarterly Journal of Economics 118,
and structure no. 4 (November 2003): 1279-1333.
Marx, Karl. Capital: A Critique of Political Economy. Vol. 1. Reprint
ed. New York, NY: Penguin Classics, part IV, chapters 12-15, pp. 312-394. ISBN:
9780140445688.
Young, Allyn. "Increasing Returns and Economic Progress." The Economic Journal 38
(December 1928): 527-542.
Marglin, Stephen A. "What Do Bosses Do? The Origins and Functions of Hierarchy in
Capitalist Production." Review of Radical Political Economics 6, no. 2 (1974): 60-112.
Becker, Gary, and Kevin Murphy. "The Division of Labor, Coordination Costs and
Knowledge." Quarterly Journal of Economics 107, no. 4 (November 1992): 1137-1160.
Sabel, Charles, and Jonathan Zeitlin. "Neither Modularity nor Relational Contracting:
Inter-Firm Collaboration in the New Economy." Enterprise and Society 5, no. 3 (2004):
388-403.
Baldwin, Carliss Y., and Kim B. Clark. "Modularity after the Crash."
Mimeo, Harvard Business School, 2001.
Also in Garud, Raghu, Arun Kumaraswamy, and Richard Langlois, eds. Managing the
Modular Age: Architectures, Networks And Organizations. Malden, MA: Blackwell
Publishers, 2003. ISBN: 9780631233169.
See also:
Kremer, Michael. "The O-Ring Theory of Economic Development." Quarterly Journal of
Economics 108, no. 3 (1993): 551-575.
Also: Some recent empirical evidence and additional theoretical speculation.
Ichniowski, Casey, Kathryn Shaw, and Giovanna Prennushi. "The Effects of Human
Resource Management Practices on Productivity: A Study of Steel Finishing Lines."
MacDuffie, John Paul. "Human Resource Bundles and Manufacturing Performance:
Organizational Logic and Flexible Production Systems in the World Automobile
Industry." Industrial and Labor Relations Review 48, no. 2 (January 1995): 197-221.
Osterman, Paul. "Work Reorganization in an Era of Restructuring: Trends in Diffusion
and Effects on Employee Welfare." Industrial and Labor Relations Review 53, no. 2
(January 2000): 179-196.
Milgrom, Paul, and John Roberts. "Complementarities and Fit: Strategy, Structure and
Organizational Change in Manufacturing." Journal of Accounting and Economics 19, nos.
2-3 (April 1995): 179-208.
Piore, Michael. "Labor Standards and Business Strategies." In Labor Standards and
Development in the Global Economy. Edited by Stephen Herzenberg, and Jorge Perez
Lopez. U.S. Department of Labor, Bureau of International Labor Affairs, Washington,
D.C., 1990.
IV. The social dimensions of the labor force
Marx, Karl. The Communist Manifesto.

Gans, Herbert. Urban Villagers. Expanded ed. New York, NY: Free
Social class Press, 1982, pp. 229-262. ISBN: 9780029112403.
Newman, Katherine S. No Shame in My Game: The Working Poor in
the Inner City. New York, NY: Alfred A. Knopf, 1999. ISBN: 9780375402548. (skim)
Granovetter, Mark S. "The Strength of Weak Ties." American Journal of Sociology 78, no.
6 (1973): 1360-1380.
Coleman, James S. "Social Capital in the Creation of Human Capital." American Journal
of Sociology 94, Supplement (1988): S95-S120.
Social capital Adler, Paul, and Seok-Woo Kwon. "Social Capital: Prospects for a New Concept."
Academy of Management Review 27, no. 1 (2002): 17-40.
Wilson, William J. The Truly Disadvantaged. Chicago, IL: University
of Chicago Press, 1990, chapters 1-3, pp. 3-92. ISBN: 9780226901312. (skim)
Identity Akerlof, George, and Rachel Kranton. "Economics and Identity." Quarterly Journal of
Economics 115, no. 3 (2000): 715-753.
Lazear, Edward. "Culture and Language." Journal of Political Economy 107, no. 6, part 2
(December 1999): S95-126.
Sabel, Charles. Work and Politics: The Division of Labor in Industry.
Reprint ed. New York, NY: Cambridge University Press, 1982, pp. 1-32 and 78-194. ISBN:
9780521319096.
Barley, Steven. "Careers, Identities and Institutions: the Legacy of
the Chicago School of Sociology." In Handbook of Career Theory. Edited by Michael B.
Arthur, Douglas T. Hall, and Barbara S. Lawrence. New York, NY: Cambridge University
Press, 1989, pp. 41-65. ISBN: 9780521389440.
Networks
Granovetter, Mark S. "The Strength of Weak Ties." American Journal of Sociology 78, no.
6 (1973): 1360-1380.
Podolny, Joel, and James Baron. "Resources and Relationships: Social Networks and
Mobility in the Workplace." American Sociological Review 62, no. 5 (1997): 673-693.
Uzzi, Brian. "The Sources and Consequences of Embeddedness for the Economic
Performance of Organizations: The Network Effect." American Sociological Review 61,
no. 4 (1996): 674-698.
Immigration
Jasso, Guillermina, Douglas S. Massey, Mark R. Rosenzweig, and James P. Smith. "The
U.S. New Immigrant Survey: Overview and Preliminary Results Based on the New
Immigrant Cohorts of 1996 and 2003." March 2005. London, UK: Immigration Research
and Statistics Service. (Forthcoming.)
Piore, Michael J. Birds of Passage: Migrant Labor and Industrial
Societies. New York, NY: Cambridge University Press, 1979, chapter 3. ISBN:
9780521224529.
Special topics Saxenian, AnnaLee. Silicon Valley's New Immigrant Entrepreneurs.
San Francisco, CA: Public Policy Institute of California, 1999. ISBN: 9781582130095.
See also:
Saxenian, AnnaLee. "Silicon Valley's New Immigrant Entrepreneurs: Skills, Networks and
Careers." Task Force on Reconstructing America's Labor Market Institutions Working
Paper #WP05, MIT Sloan School of Management, 1999.
Kerr, William R. "Ethnic Scientific Communities and International Technology Diffusion."
Harvard Business School Working Paper No. 06-022, 2006.
Borjas, George. "The Labor Market Impact of High-Skill Immigration." American
Economic Review 95, no. 2 (May 2005): 56-60.
Freeman, Richard B. "Fellowship Stipend Support and the Supply of Science and
Engineering Students: NSF Graduate Research Fellowships." American Economic Review
95, no. 2 (May 2005): 61-65.
Chen, Yiu Por. "Skill-Sorting, Self-Selectivity, and Immigration Policy Regime Change:
Two Surveys of Chinese Graduate Students' Intention to Study Abroad." American
Economic Review 95, no. 2 (May 2005): 66-70.
Stephan, Paula, and Jennifer Ma. "The Increased Frequency and Duration of the
Postdoctorate Career Stage." American Economic Review 95, no. 2 (May 2005): 71-75.
V. Institutions
General Djankov, Simeon, Rafael La Porta, Florencio Lopez-de-Silane, Andrei Shleifer, and Juan
Botero. "The Regulation of Labor." National Bureau of Economic Research Working
Paper No. 9756, 2003.
Streeck, Wolfgang, and Kathleen Thelen. Beyond Continuity:
Institutional Change in Advanced Political Economies. New York, NY: Oxford University
Press, 2005, pp. 1-39. ISBN: 9780199280452.
Hall, Peter A., and David Soskice, eds. "An Introduction to Varieties
of Capitalism." In Varieties of Capitalism: The Institutional Foundations of Comparative
Advantage. New York, NY: Oxford University Press, 2001, pp. 1-68. ISBN:
9780199247752.
Milgrom, Paul, and John Roberts. "Complementarities and Fit: Strategy, Structure and
Organizational Change in Manufacturing." Journal of Accounting and Economics 19, nos.
2-3 (April 1995): 179-208.
Acemoglu, Daron. "Constitutions, Politics, and Economics: A Review Essay on Persson
and Tabellini's The Economic Effects of Constitutions." Journal of Economic Literature
43, no. 4 (2005): 1025-1048.
See also, for a classic perspective:
North, Douglass. Institutions, Institutional Change and Economic
Performance. New York, NY: Cambridge University Press, 1990. ISBN: 9780521397346.
Thelen, Kathleen. How Institutions Evolve: The Political Economy of
Skills in Germany, Britain, the United States, and Japan. Cambridge, UK: Cambridge
Dunlop, John. Industrial Relations Systems. Carbondale, IL: Southern Illinois University
Press, 1977, 1958, chapter 1, pp. 43-61.
Kochan, Thomas, Harry Katz, and Robert McKersie. The
Transformation of American Industrial Relations. Ithaca, NY: ILR/Cornell University Press,
1994, chapters 2-3. ISBN: 9780875463209.
Freeman, Richard B., and James L. Medoff. What Do Unions Do?
New York, NY: Basic Books, 1984, chapters 1 and 16, pp. 3-25 and 246-251. ISBN:
Trade unions
9780465091331.
Piore, Michael. "The Future of Unions." In The State of the Unions.
Edited by George Strauss, Daniel Gallagher, and Jack Fiorito. Madison, WI: Industrial
Relations Research Association, 1991, pp. 387-410. ISBN: 9780913447499.
2001, chapter 4. ISBN: 9780262650625.
Fine, Janice. "Community Unions and the Revival of the American Labor Movement."
Quasi-unions in Politics & Society 33, no. 1 (March 2005): 153-199.
the new labor Safford, Sean. "The Role of National Membership Organizations in Contemporary
market American Industrial Relations." Mimeo, University of Chicago, Graduate School of
Business, September 2005.
Labor market Dobbin, Frank, and John Sutton. "The Strength of a Weak State: The Rights Revolution
institutions in and the Rise of Human Resources Management Divisions." American Journal of
the new Sociology 104, no. 2 (1998): 441-476.
economy Supreme Court of the United States. Circuit City Stores, Inc., Petitioner v. Saint Clair
Adams. No. 99-1379 (9th Cir. 2001).
Van Wezel Stone, Katherine. "Labor/Employment Law: Mandatory Arbitration of
Individual Employment Rights: The Yellow Dog Contract of the 1990s." Denver
University Law Review 1017, no. 73 (1996).
Autor, David. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the
Growth of Employment Outsourcing." Journal of Labor Economics 21, no. 1 (January
2003): 1-42.
Piore, Michael. "Reconfiguration of Work and Employment
Relations in the United States at the Turn of the Century." In Changing Life Patterns in
Western Industrial Society. Edited by Janet Giele and Elke Holst. Oxford, UK: Elsevier,
2004, pp. 23-44. ISBN: 9780762310203.
2001, chapter 5, pp. 131-148. ISBN: 9780262650625.
Auer, Peter, and Sandrine Cazes. Employment Stability in an Age of

Flexibility, Evidence from Industrialized Countries. Geneva, Switzerland: ILO, 2003, intro,
chapter 3 (Denmark) and chapter 5 (Japan), pp. 59-105 and 159-217. ISBN:
9789221127161.
Bertola, Guiseppe, Francine Blau, and Lawrence Kahn. "Comparative
International Analysis of Labor Market Outcomes: Lessons for the United States from International
comparison Long-Run Evidence." In The Roaring Nineties: Can Full Employment Be Sustained. Edited
by Alan Krueger and Robert Solow. New York, NY: Russell Sage Foundation, 2002, pp.
159-218. ISBN: 9780871548177.
Mosher, Jim. "The Institutional Origins of Wage Equality: Labor Unions and Their Wage
Policies." Mimeo, University of Wisconsin-Madison, 1999. Prepared for delivery at the
APSA Annual Meeting, September 2-5, 1999, Atlanta, Georgia.
Schrank, Andrew. "Labor Standards and Human Resources: A Natural Experiment in an

Unlikely Laboratory." Mimeo, University of New Mexico, 2005.
———. "Professionalization and Probity in the Patrimonial State: Labor Law
Enforcement in the Dominican Republic." Mimeo, Yale University, 2005.
Labor market
regulations in a Piore, Michael. "Rethinking International Labor Standards." In Labor
global economy and the Globalization of Production: Causes and Consequences of Industrial Upgrading.
Edited by Will Milberg. New York, NY: Palgrave Macmillan, 2004, pp. 249-265. ISBN:
9781403935021.
Weil, David. "Are Mandated Health and Safety Committees Substitutes or Supplements
for Labor Unions?" Industrial and Labor Relations Review 52, no. 3 (April 1999): 339-360.
CAPITALISM AND ITS CRITIQUES
WEEK # TOPICS READINGS
I. Introduction and Overview
The Evolution of the Industrial

1 No readings
State
2 Paradigms in Social Science Kuhn, Thomas S. "The Route to

Normal Science." Chapter 2 in The Structure of Scientific
Revolutions: 50th Anniversary Edition. University of
Chicago Press, 2012. ISBN: 9780226458120. [Preview
with Google Books]
———. "The Nature of Normal
Science." Chapter 3 in The Structure of Scientific
with Google Books]
———. "The Nature and Necessity of
Scientific Revolutions." Chapter 9 in The Structure of
Scientific Revolutions: 50th Anniversary Edition. University
of Chicago Press, 2012. ISBN: 9780226458120. [Preview
with Google Books]
———. "Revolutions as Changes of
World View." Chapter 10 in The Structure of Scientific
with Google Books]
Friedman, Milton. "Methodology of
Positive Economics." In Essays in Positive Economics.
[Preview with Google Books]
II. Liberalism and Neoclassical Economics
The Fountainhead. Directed by

2 King Vidor. Black and White, 114 No readings
min. 1949.
[Rand]
Discussion of Rand Friedman, Milton. Chapters 1–3, 6,
3 Milton Friedman, Capitalism and 10, and 12–13 in Capitalism and Freedom: 40th
Freedom Anniversary Edition. University of Chicago Press, 2002.
ISBN: 9780226264219. [Preview with Google Books]
Becker, Gary S. "The Economic

Approach to Human Behavior." Chapter 1 in The
Economic Approach to Human Behavior. University of
with Google Books]
———. "Altruism, Egoism, and
Becker Genetic Fitness: Economics and Sociobiology." Chapter 13
4
Gilder in The Economic Approach to Human Behavior. University
of Chicago Press, 1978. ISBN: 9780226041124.
Gilder, George. "The Mandate for
Capitalism." Part One in Wealth and Poverty: A New
Edition for the Twenty-First Century. Regnery Publishing,
2012. ISBN: 9781596988095. [Preview with Google
Books]
III. Marxism, Economics and Politics
5 Marxism: The Manifesto Marx, Karl, and Frederick Engels. "Manifesto of the
Elster Communist Party." 1848. anu.edu.au.
Marx, Karl. Capital: A Critique of Political Economy.
Chapters XIV, and XV, Sections 1, and 2. marxists.org.
Elster, Jon. "Marxist Methodology."
Chapter 2 in An Introduction to Karl Marx. Cambridge
University Press, 1986. ISBN: 9780521338318. [Preview
with Google Books]
———. "Marxian Economics."
University Press, 1986. ISBN: 9780521338318
———. "Historical Materialism."
University Press, 1986. ISBN: 9780521338318
———. "Class Consciousness and
Class Struggle." Chapter 7 in An Introduction to Karl Marx.
Cambridge University Press, 1986. ISBN:
9780521338318.
———. "Marx's Theory of Politics."
Bowles, Samuel, and Herbert Gintis. "The Crisis of Liberal

Democratic Capitalism: The Case of the United States."
Capital, The Division of Labor and Politics & Society 11, no. 1 (1982): 51–93.
Machinery
6 Foley, Duncan K. "The Severest
Bowles and Gintis
Foley Critic." Chapter 3 in Adam's Fallacy: A Guide to Economic
Theology. Belknap Press, 2008. ISBN: 9780674027299.
IV. The Social Embeddedness of the Economy
Weber, Max. "The Spirit of Capitalism." Chapter 2 in The

Protestant Ethic and the Spirit of Capitalism. marxists.org.
Introduction
8 ———. "Asceticism and the Spirit of Capitalism." Chapter
Weber
5 in The Protestant Ethic and the Spirit of Capitalism.
marxists.org.
Polanyi, Karl. The Great

Transformation: The Political and Economic Origins of
Our Time. 2nd ed. Beacon Press, 2001, pp. 43–52, 68–76,
130–50, 192–200, 200–19, and 249–58. ISBN:
Polanyi 9780807056431.
9
Schumpeter Schumpeter, Joseph A. "Can
Capitalism Survive?" Part II (especially pages 121–63) in
Capitalism, Socialism and Democracy. 3rd ed. Harper
Perennial Modern Classics, 2008. ISBN: 9780061561610.
10 Keynes Keynes, John Maynard. The General

Theory of Employment, Interest, and Money. Harcourt,
Brace & World, 1965, pp. 3–34, and 245–79. ISBN:
V. The Rise and Fall of the Corporate State
Galbraith, John Kenneth. "The

Corporation." Chapter 7 in The New Industrial State.
10 Galbraith and Solow Princeton University Press, 2007. ISBN: 9780691131412.
Solow, Robert M. "The New Industrial State or Son of
Affluence." The Public Interest, no. 9 (1967): 100–19.
Piore, Michael J., and Charles F.

Sabel. "Mass Production as Destiny and Blind Decision."
Chapter 2 in The Second Industrial Divide: Possibilities for
Prosperity. Basic Books, 1986. ISBN: 9780465075614.
———. "The Corporation." Chapter 3
11 Piore and Sabel in The Second Industrial Divide: Possibilities for Prosperity.
Basic Books, 1986. ISBN: 9780465075614.
———. "Possibilities for Prosperity:
International Keynesianism and Flexible Specialization."
Chapter 10 in The Second Industrial Divide: Possibilities
for Prosperity. Basic Books, 1986. ISBN: 9780465075614.
VI. The Crisis
Davis, Gerald F. Managed by the

Markets: How Finance Re-Shaped America. Oxford
The Crisis University Press, 2009, pp. 1–14, and 235–55. ISBN:
12-13 Davis 9780199216611. [Preview with Google Books]
Lo Dubner, Stephen J. "This is Your Brain on Prosperity:
Andrew Lo on Fear, Greed, and Crisis Management."
January 9, 2009. freakonomics.com.
VII. Recasting Individualism
13 Thaler and Sunstein Thaler, Richard H., and Cass R.

DellaVigna Sunstein. "Introduction." In Nudge: Improving Decisions
About Health, Wealth, and Happiness. Revised and
expanded edition. Penguin Books, 2009. ISBN:
———. "Biases and Blunders."
Chapter 1 in Nudge: Improving Decisions About Health,
Wealth, and Happiness. Revised and expanded edition.
Penguin Books, 2009. ISBN: 9780143115267. [Preview
with Google Books]
DellaVigna, Stefano. "Psychology and Economics:
Evidence from the Field." Journal of Economic Literature
47, no. 2 (2009): 315–72.
Arendt, Hannah. "Vita Activa and the

Human Condition." Chapter 1 in The Human Condition.
2nd ed. University of Chicago Press, 1998. ISBN:
———. "The Term Vita Activa."
Chapter 2 in The Human Condition. 2nd ed. University of
Chicago Press, 1998. ISBN: 9780226025988.[Preview with
Google Books]
Arendt ———. "Eternity Versus
14 Sacks Immortality." Chapter 5 in The Human Condition. 2nd ed.
Lester and Piore University of Chicago Press, 1998. ISBN: 9780226025988.
Sacks, Oliver. Seeing Voices: A
Journey into the World of the Deaf. Vintage Books, 2000.
ISBN: 9780375704079.
Lester, Richard K., and Michael J.
Piore. Innovation—The Missing Dimension. Harvard
University Press, 2004. ISBN: 9780674019942. [Preview
with Google Books]
The Soul of A New Machine

The Double Helix: A Personal [Watson]
15
Account of the Discovery of the [Kidder]
Structure of DNA
Recommended Readings
Rawls, John. "Some Reasons for the Maximin Criterion." American Economic Review 64, no. 2 (1974): 141–6.
Foley, Duncan K. "Adam's Vision." Chapter 1 in Adam's Fallacy: A Guide to Economic
Theology. Belknap Press, 2008, pp. 1–4. ISBN: 9780674027299. [Preview with Google Books]
———. "Grand Illusions." Chapter 6 in Adam's Fallacy: A Guide to Economic Theology.
Belknap Press, 2008. ISBN: 9780674027299. [Preview with Google Books]
Althusser, Louis. For Marx (Part 1), pp. 94–101, 104–7, and 110–16. marx2mao.com.
Althusser, Louis, and Étienne Balibar. "The Errors of Classical Economics: Outline of a Concept of Historical
Time." Chapter 4 in Reading Capital (Part 2), pp. 91–101. marx2mao.com.
Krugman, Paul. "How Did Economists Get It So Wrong?" New York Times Magazine, September 2, 2009.
Solow, Robert M. "How To Understand the Disaster." New York Review of Books, May 14, 2009.
SE
S TOPICS READINGS
#
Laying the Theoretical Foundations
1 Introduction, [BSO] Lawson, George. Chapter 2: The Rise of the Modern Internationa
Syllabus [BSO] Scott, Len. Chapter 3: International History 1990–99. [Preview w
2 Realism [BSO] Dunne, Tim, and Brian C. Schmidt. Chapter 6: Realism. [Preview
3 Liberalism [BSO] Dunne, Tim. Chapter 7: Liberalism. [Preview with Google Books]
[BSO] Hobden, Stephen, and Richard Wyn Jones. Chapter 8: Marxist Th

4 Marxism
Global
5 Political [BSO] Phillips, Nicola. Chapter 16: Global Political Economy.
Economy
Constructivis
6 [BSO] Barnett, Michael. Chapter 9: Social Constructivism. [Preview wit
m
Poststructural
ism [BSO] Hansen, Lene. Chapter 10: Poststructuralism.
7
Post- [BSO] Sylvester, Christine. Chapter 11: Post-colonialism.
colonialism
Re-examining IR Theory and History
[BL] "Introduction."
Challenging
8 [BL] Chapter 1: Systems, History, Theory, and the Study of Internation
IR Theory
[BL] Chapter 2: Competing Conceptions of the International System.
Theoretical [BL] Chapter 4: The Theoretical Toolkit of this Book.

9
Toolkit I & II [BL] Chapter 5: Establishing Criteria for International Systems.
Pre-
[BL] Chapter 6: The Origins of Pre-international Systems.
10 international
[BL] Chapter 7: The Transition from Pre-international to International S
Systems
Ancient and
[BL] Chapter 8: The New Units: City-States, Empires, and Barbarians a
Classical
11 Classical World.
Systems I &
[BL] Chapter 9: Interaction Capacity in Ancient and Classical Internatio
II
Ancient and
[BL] Chapter 10: Process in Ancient and Classical International System
12 Classical
[BL] Chapter 11: Structure in Ancient and Classical International Syste
Systems III
Modern [BL] Chapter 12: Units in the Modern International System.
13
System I & II [BL] Chapter 13: Interaction Capacity Structure in the Modern Internat
Modern [BL] Chapter 14: Process in the Modern International System.

14
System III [BL] Chapter 15: Structure in the Modern International System.
Actors, Institutions, and Issues in International Relations
Postmodern
System / [BL] Chapter 16: Outlook: A Postmodern International System?
16
World History [BL] Chapter 17: What World History Tells us about International Relat
and IR
Environmenta
17 [BSO] Vogler, John. Chapter 24: Environmental Issues. [Preview with G
l Issues
United
Nations [BSO] Reus-Smit, Christian. Chapter 19: International Law. [Preview w
18
International [BSO] Curtis, Devon E.A., and Paul Taylor. Chapter 21: The United Nat
Law
International
Organizations [BSO] Park, Susan. Chapter 20: International Organizations in World P
19
NGOs in [BSO] Joachim, Jutta. Chapter 22: NGOs in World Politics.
World Politics
War
International [BSO] Barkawi, Tarak. Chapter 14: War and World Politics. [Preview wi
20
and Global [BSO] Baylis, John. Chapter 15: International and Global Security. [Pre
Security
Human
Security [BSO] Kiras, James D. Chapter 25: Terrorism and Globalization.
21
Terrorism and [BSO] Donnelly, Jack. Chapter 31: Human Rights.
Globalization
WMD
22 [BSO] Greitens, Sheena Chestnut. Chapter 26: Proliferation of Weapon
Proliferation
Human Rights
Poverty, [BSO] Evans, Tony, and Caroline Thomas. Chapter 29: Poverty, Hunge
23
Development, [BSO] Donnelly, Jack. Chapter 31: Human Rights.
and Hunger
Global Trade
24 [BSO] Watson, Matthew. Chapter 28: Global Trade and Global Finance.
and Finance
Race [BSO] Kirby, Paul. Chapter 17: Gender.

25
Gender [BSO] Shilliam, Robbie. Chapter 18: Race in World Politics.
[BSO] Breuilly, John. Chapter 27: Nationalism, National Self-determina

Nationalism
Brueilly, John. "Nationalism." Chapter 25 in The Globaliz
26 Culture in
to International Relations. 6th edition. Edited by John Baylis, Steve Sm
World Affairs

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SES # TOPICS READINGS

The principle of optimality

Models with constant returns to scale

Stochastic dynamic programming

10-12 Continuous time Calculus of variations

The maximum principle

Discounted infinite-horizon optimal control

2) Introduction to modern economic growth. Daron Acemoglou

Brunnermeier, Markus K. "Deciphering the Liquidity and Credit

* Holmstrom, Bengt, and Jean Tirole. "Financial Intermediation,

* Geanakoplos, John. "The Leverage Cycle." (PDF) NBER

* Diamond, Douglas W., and Philip H. Dybvig. "Bank Runs, Deposit

* Holmstrom, Bengt. "Understanding the Role of Debt in the

McDonald, Robert, and Anna Paulson. "AIG in Hindsight." Journal of

Section I: Core Models of International Trade

2& Lecture 2&3: The Ricardian Essential

5 Lecture 5: Gains from Trade Essential

10 & Lectures 10&11: Empirics of Heckscher-Ohlin: General/Introduction

16 Lecture 16: Gravity Models Essential

Section II: Miscellaneous Topics in Trade

18 Lecture 18: Trade Costs Recommended

19 & Lecture 19&20: Offshoring and Recommended (Theory)

23 & Lecture 23&24: Trade Policy Essential (Trade Policy)

Recommended (Political Economy of Trade Policy)

I. Labor Market Facts and Trends

Goldin, Claudia. "Labor Markets in the 20th Century."

II. Neoclassical Labor Supply

Camerer, Colin, Linda Babcock, George Lowenstein, and

7 Household family models; theory of Becker, Gary S. A Treatise on the

III. Labor Demand, Immigration, Minimum Wages, Unions

Hamermesh, Daniel. Labor Demand.

10 Empirical studies of immigration Johnson, George E. "The Labor Market Effects of

11 Minimum wages; review of Brown, Charles. "Minimum Wages,

Angrist, Joshua, and Jorn-Steffen

13- Union relative wage effects; Freeman, Richard, and James

IV. Human Capital

Mincer, Jacob. Schooling,

Hoxby, Caroline. "Does Competition among Public

21 Human capital policy; higher Schweinhart, Lawrence J., W. Steven

Becker, Gary. The Economics of

26 Anti-discrimination policy Leonard, J. "The Impact of Affirmative Action on

1RA PARTE LABOR ECONOMICS I

I. Moral hazard and agency

*Prendergast, C. "The Provision of Incentives in Firms." Journal of Economic Literature

Holmström, B., and P. Milgrom. "Aggregation and Linearity in the Provision of

II. Employer wage differentials

Compensating Rosen, S. "The Theory of Equalizing Differences." In Handbook of

III. Discrimination and differentials by race and gender

IV. Changes in the wage structure and inequality

*Acemoglu, D. "Technical Change, Inequality and the Labor Market." Journal of

Organisation for Economic Co-operation and Development (OECD). "Earnings

2DA PARTE LABOR ECONOMICS II

I. Introduction and overview

II. Worker motivation and behavior

III. Technology, Job Characteristics, and Structure

IV. The social dimensions of the labor force

Marx, Karl. The Communist Manifesto.

Auer, Peter, and Sandrine Cazes. Employment Stability in an Age of

Schrank, Andrew. "Labor Standards and Human Resources: A Natural Experiment in an

CAPITALISM AND ITS CRITIQUES

WEEK # TOPICS READINGS

I. Introduction and Overview