Overview of the Labor Market

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Economics 321 Labor Economics Fall
2008 Monday/Wednesday/Friday 210PM-300PM 138
Horticulture
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Ms. Hai-Lan (Helen) Yang 78 Heady
Hall pseudo_at_iastate.edu 
Teaching Assistant
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• Aim To develop a working knowledge of
• economic models of discrimination
• federal antidiscrimination laws
• Models of marriage and household decisions
• Facts regarding wages, education, occupation and
  labor supply for various majority and minority
  groups.

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• 3x5 Card
• Name Last, First
• Long Term Academic Objective
• Long Term Job Objective
• 1 thing you want to learn this term in Econ 321

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Blau, Francine D., Marianne A. Ferber, and Anne
E. Winkler. 2006. The Economics of Women, Men and
Work, 5th edition. Pearson Prentice Hall.
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Topics

• A. Economics of Discrimination
• Models of Discrimination
• Empirical Evidence on Differences
• Explained Differences the Human Capital Model
• Measuring Discrimination the Earnings Function
• Applications to various groups
• Discrimination laws
• B. Household Formation and Production
• Theory of Marriage
• Time Allocation in the household

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Expectations Exams Problems Sets Class
Participation Team Class Presentation Econ
ometric Exercise http//www.econ.iastate.edu/clas
ses/econ321/Orazem/
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Team

• Take 5 minutes to locate your teammates
• Pick 3 papers you would be willing to present in
  order of preference
• List on 4x6 card with your names and hand in

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What is discrimination?

• Websters discriminate
• To make a distinction to use good judgment
• To make a difference in treatment or favor on a
  basis other than individual merit.

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What is discrimination?

• Economic definition (Thomas Sowell)
• To offer different transaction terms to
  individuals differing only by group membership
  (antagonism. See Blau et al, p. 203)
• To offer different transaction terms to
  individuals because of subjectively held opinions
  regarding relevant criteria (institutional or
  unconscious)
• To offer different transaction terms to
  individuals because of accurate knowledge of
  group differences (statistical)
• To put a price on unproductive attributes
  (Becker?)

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What is discrimination?

• Economic definition (Thomas Sowell)
• To offer different transaction terms to
  individuals based on individual attributes
• Can be unfair, but it is not discrimination
  unless it has a group dimension

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What is discrimination?

• Deviation from competitive labor market
  equilibrium
• To be shown