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Department of Economics Summer 2020

University of California, Berkeley Economics 151
Online Dr. Carson
Office: Evans Hall, tentative carson_s@utpb.edu

Economics 151 – Labor Economics

Economics addresses how scarce resources are allocated to meet human needs and
objectives. As junior economists, you may have been attracted to economics as a major
because of its relevance in commerce, financial markets, and international trade.
However, as you have learned in your intermediate micro and macroeconomics courses,
the tools of economics have a broad application in both private and public transactions.
For transactions involving the scarce resource labor, economics offers unique
contributions that address business, migration, health, education, and all areas involving
human interaction in the work relationship. As you plan your careers, keep your
economic interest in commerce, financial markets, and international trade, but realize that
much of the interesting ideas in business, private, and public policy-making involve the
tools developed and used in labor economics.

1. Gain a broad understanding of how labor markets work.

2. Understand what influences work force participation.

3. Learn the theory of human capital.

4. Understand factors leading to population change.

5. Learn the economics of education.

Assignments

You are graded on your performance relative to the class in six areas. Each assignment is
handed in as hard copy in class. There may be additional graded course work announced
in lecture, so you are responsible for any in-class announced assignments. Expect an
unannounced in-class assignment.

1. Optimization assignment (50 points) Due:

2. Guido and Murphy, Journal of Economic History Due:
3. Ed Lazear Journal of Economic Perspectives assignment (50 points) Due:
4. Midterm (100 points) Due:
5. New Geography of Jobs assignment and podcast (100 points) Due:
6. Comprehensive final (100 points) Due:
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Assignments are due in class on the day specified. Assignments are not accepted late
without prior approval and an acceptable reason.

Professor's Office Hours

M, T, W, H 2pm-3pm, Pacific Time

There are abundant office hours, so please take advantage of them.

Prerequisite

Economics 1 (Introduction to Microeconomics and Macroeconomics) is the only

prerequisite for the course. Some familiarity with the broad outlines of U.S. economic
history is presumed.

Required Textbooks

Borjas, George J. (2016). Labor Economics, 8th Edition. McGraw-Hill

I really do not care which edition you use.

Alfani, Guido and Tommy Murphy. (2017). “Plague and Lethal Epidemics in the Pre-
Industrial World.” Journal of Economic History, 77(1), pp. 314-343.

https://www.cambridge.org/core/services/aop-cambridge-
core/content/view/1D2D564AD8560ABACAF9D81A65F27CED/S0022050717000092a.
pdf/plague_and_lethal_epidemics_in_the_preindustrial_world.pdf

Lee, Ronald. (2003). “The Demographic Transition: Three Centuries of Fundamental

Change.” Journal of Economic Perspectives 17(4), pp. 167-190.

Carson, Scott Alan. (2005) “Chinese Sojourn Labor and the American Transcontinental
Railroad: Transaction Costs, Labor Queuing and Demand-Side Learning,” Journal of
Institutional and Theoretical Economics. Volume 161(1), pp. 80-102.

Lazear, Edward. (2018). “Compensation and Incentives in the Workplace.” Journal of

Economic Perspectives. 32(3). pp. 195-214.

https://www.jstor.org/stable/pdf/40752497.pdf

Moretti, Enrico. (2012). The New Geography of Jobs. Mariner Books: New York.

Grading
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Grades are assigned according to your point accumulation relative to the class high. Grades are
assigned according to the following scale:

Grade Percent
A 93%
A- 90%
B+ 87%
B 84%
B- 81%
C+ 78%
C 75%
C- 70%
D+ 67%
D 64%
D- 60%
F Below 60%

PACE OF THE COURSE AND OFFICE HOURS

Microeconomics is among the most important courses you will take as an undergraduate.
As the instructor, I must present the material in a timely, scheduled fashion. However,
you are given abundant time in class to stop me and ask questions. If you have additional
questions from class that you do not understand at the end of lecture, please see me
during office hours. You are welcome and invited.

Office hours are for conceptual questions and administrative issues. Help on homework
assignments are for GSI hours.

TEST DAY

Given the online format, we are working with identification on exam days. A
government issued photo identification is required to take exams. Bring it with you on
test day. Only four function electronic calculators are permissible on test days. Nothing
programmable. You do not need anything with greater capability.

Any individual or collective effort to gain an unfair advantage is treated as an explicit

attempt to defraud your fellow students and is dealt with through the office of student
affairs. This means a student conduct record will follow you through your time at the
University. So please, let’s not go there.

DSP Students
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If you are a DSP student, it is your responsibility to physically bring me your accommodation
letter the first week of class. Since this semester is online, we need to set up brief appointment so
that I can connect students with their accommodation letters. Simply emailing it to me is not
sufficient, as I have to connect each letter with the student. It is also your responsibility to know
when and where accommodations are met. These are typically done after lecture.

Physician’s Notes and Health Related Issues

A physician’s note does not dictate course grading or course policy. If you are under the
supervision of any form of a health practitioner, it is your responsibility to let the
instructor know as soon as possible. Do not go to a GSI, as they do not determine course
policy. For any consideration of a health related issue, communication with the health
care professional must be made on official letter head. Simply a note on unofficial letter
head or casual communication does not constitute communication with a health care
professional. Do not expect that any form of communication with a health care
professional is sufficient to alter course policy, and any form of misrepresentation with a
health care professional is regarded as fraud and dealt with under University fraud policy.

Outline
Chapter
1 Introduction
2 Labor Supply
3 Labor Demand
4 Labor Market Equilibrium
11 Incentive Pay
5 Compensating Wage Differentials
6 Human Capital
7 The Wage Distribution
8 Labor Mobility
9 Labor Market Discrimination

This is a tentative syllabus and outline. I reserve the right to make changes. However, all
changes will be announced in class. If you miss a day, you are responsible to be informed of
any changes to this syllabus.