GRADUATE LABOR ECONOMICS SYLLABUS Manuel Bagues CEMFI. September 2014

GRADUATE LABOR ECONOMICS SYLLABUS Manuel Bagues CEMFI September 2014 Topics I. Facts and Figures 1. Basic Definitions and Statistics 1.A Employment 1.B Income and Wages 1.C Education II. Labor Supply 1. Static and Dynamic Labor Supply 1.A Static Model of Labor Supply 1.B Dynamic Labor Supply: The Life-Cycle Model 1.C Estimating Labor Supply Elasticities 2. Household Production and Time Allocation in the Family 2.A Household Production 2.B Family Labor Supply 2.C Fertility Decisions III. Labor Demand and Labor Market Equilibrium 1. Labor Demand and Equilibrium under Perfect Competition 1.A Labor Demand of Price-Taking Firms 1.B Labor Market Equilibrium under Perfect Competition IV. Imperfect Labor Markets and Unemployment 1. Monopsony, Minimum Wages, and Unions 1.A Monopsony 1.B Minimum Wages 1.C Unions 2. Unemployment 2.A Labor Markets with Perfect Competition 2.B Labor Markets with Frictions

V. Human Capital and Schooling 1. Human Capital Theory 1.A Concept of Human Capital 1.B Schooling Choice 1.C Life-Cycle Wage Profiles 2. Returns to Education: The Textbook Example for Causal Inference in Applied Microeconomics 2.A The Mincer Wage Equation 2.B Empirical Strategies for Causal Inference in Applied Microeconomics 3. School Organization 3.A School Resources 3.B School Incentives VI. Wage Inequality 1. Wage Inequality and Technological Change 1.A Trends in Skill Premia and Skill Supply 1.B Skill-Biased Technological Change 1.C Estimating the Demand for Skill 2. Occupational Tasks and Labor Market Polarization 2.A Technology Adoption in the Workplace 2.B Occupational Tasks 2.C Labor Market Polarization VII. Migration 1. Immigration 1.A Empirical Patterns of Immigration 1.B A Theory of Immigrant and Native Labor 1.C Empirical Estimates of Immigrants' Impact on Native Workers 1.D Other Aspects of Immigration VIII. Discrimination 1. Discrimination Theories 1.A The Concept of Discrimination 1.B Taste-Based Discrimination 1.C Statistical Discrimination 1.D Stereotype Threat 2. Evidence for Discrimination 2.A The Gender Wage Gap 2.B Audit Studies and Hiring Experiments 2.C Empirical Evaluation of Discrimination Theories

IX. Social Environment 1. Family Background 1.A Intergenerational Correlations 1.B Nature vs. Nurture 2. Peers 2.A Peers Effects 2.B Job Search Networks X. Fairness and Norms 1. Fairness 1.A Theory and Experiments 1.B Beyond Experiments 2. Reference Points 2.A Reference-Dependent Utility 2.B Reference-Dependent Effort

References by Topic II Labor Supply 1. Static and Dynamic Labor Supply Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 2, sections 2 to 9 and chapter 3, section 1). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 1, sections 1.1, 1.3, and 2). ***** Ashenfelter, Orely and Mark W. Plant. 1990. "The Estimation of Income and Substitution Effects in a Model of Family Labor Supply." Journal of Labor Economics, 8, S395-S415. Ashenfelter, Orley, Kirk Doran, and Bruce Schaller. 2010. "A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply." Economica, 77(308), Pages 613 800. Bargain, Olivier, Kristian Orsini and Andreas Peichl. "Labor Supply Elasticities in Europe and the US." IZA Discussion Paper no. 5820, June. Becker, Gary and Gilbert Ghez. 1976. The Allocation of Time and Goods Over the Life- Cycle. New York: Columbia University Press. Blundell, Richard, Antoine Bozio and Guy Laroque.(forthcoming). "Extensive and Intensive Margins of Labour Supply: Working Hours in the US, UK and France." Fiscal Studies. Blundell, Richard, Alan S. Duncan and Costas Meghir. 1998. "Estimating Labor Supply Responses Using Tax Reforms." Econometrica, 66, 827-861. Blundell, Richard and Thomas MaCurdy. 1999. "Labor Supply: A Review of Alternative Approaches." Handbook of Labor Economics, 3, 1559-1695. Card, David and Dean R. Hyslop. 2005. "Estimating the Effects of a Time-Limited Earnings Subsidy for Welfare-Leavers." Econometrica, 73, 1723-1770. Eissa, Nada and Jeffrey B. Liebman. 1996. "Labor Supply Response to the Earned Income Tax Credit." Quarterly Journal of Economics, 111, 605-637. Farber, Henry S. 2005. "Is Tomorrow Another Day? The Labor Supply of New York City Cab Drivers." Journal of Political Economy, 103, 46-82. Farber, Henry S. 2014. " Why You Can t Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers" IZA Working paper 8562. Fehr, Ernst and Lorenz Götte. 2007. "Do Workers Work More if Wages are High? Evidence from a Randomized Field Experiment." American Economic Review, 298-317. Imbens, Guido W., Donald B. Rubin and Bruce I. Sacerdote, Estimating the Effect of

Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players. American Economic Review, 91, 778-794. Liebman, Jeffrey B. and Erzo F.P. Luttmer. 2011. "Would People Behave Differently if They Better Understood Social Security? Evidence from a Field Experiment." NBER Working Paper No. 17287, August. MaCurdy, Thomas. 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting." Journal of Political Economy, 89, 1059-1085. Oettinger, Gerald S. 1999. "An Empirical Analysis of the Daily Labor Supply of Stadium Vendors." Journal of Political Economy, 107, 360-392. Pencavel, John. 1987. "Labor Supply of Men: A Survey." Handbook of Labor Economics, 1, 3-102. 2. Household Production and Time Allocation in the Family Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 3, sections 5 and 6). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 1, section 1.2). ***** Aguiar, Mark and Erik Hurst. 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades." Quarterly Journal of Economics, 122, 969-1006. Becker, Gary. 1973. "A Theory of Marriage: Part I." Journal of Political Economy, 81, 813-846. Becker, Gary. 1981. A Treatise on the Family. Cambridge: Harvard University Press. Browning, Martin. 1992. "Children and Household Economic Behavior." Journal of Economic Literature, 30, 1434-1475. Chiappori, Pierre-André, Bernard Fortin and Guy Lacroix. 2001. "Marriage Market, Divorce Legislation, and Household Labor Supply." Journal of Political Economy, 110, 37-72. Gelbach, Jonah B. 2002. "Public Schooling for Young Children and Maternal Labor Supply." American Economic Review, 92, 307-322. Gronau, Reuben. 1977. "Leisure, Home Production and Work - The Theory of the Allocation of Time Revisited." Journal of Political Economy, 85, 1099-1124. Gronau, Reuben. 1987. "Home Production - A Survey." Handbook of Labor Economics, 1, 273-304. Montgomery, Mark R. and Trussell James. 1987. "Models of Marital Status and Childbearing." Handbook of Labor Economics, 1, 205-271.

Willis, Robert J. 1987. "What Have We Learned from the Economics of the Family?" American Economic Review, 77, 68-81. III. Labor Demand and Labor Market Equilibrium Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 4, sections 1 to 5 and 9; chapter 5, section 1). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 4, sections 1.1 to 1.3). ***** Hamermesh, Daniel. 1987. "The Demand for Labor in the Long Run." Handbook of Labor Economics, 1, 429-471. Hamermesh, Daniel. 1993. Labor Demand. Princeton: Princeton University Press. Nickell, Stephen. 1987. "Dynamic Models of Labour Demand." Handbook of Labor Economics, 1, 473-522. IV. Imperfect Labor Markets and Unemployment Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 4, section 10; chapter 5, section 6; chapter 11, sections 3 and 7; chapter 13, sections 2 to 4). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 5, section 2.1; chapter 7, sections 1, 3, 4, and 6; chapter 8, sections 1, 3, and 4; chapter 12, section 1 and 2). ***** Addison, John and Paulino Teixeira. 2003. "The Economics of Employment Protection." Journal of Labor Research, 24, 85-129. Alesina, Alberto, Yann Algan, Pierre Cahuc, and Paola Giuliano. 2010. "Family Values and the Regulation of Labor." IZA Discussion Paper, no. 4747. Ashenfelter, Orley C., Henry Farber, and Michael R. Ransom. 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey." Journal of Labor Economics, forthcoming. Bentolila, Samuel and Giuseppe Bertola. 1990. "Firing Costs and Labour Demand: How Bad is Eurosclerosis?" Review of Economic Studies, 57, 381-402. Blanchard, Olivier and Pedro Portugal. 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and US Labor Markets." American Economic Review, 90, 187-207.

Brown, Charles. 1999. "Minimum Wages, Employment, and the Distribution of Income." Handbook of Labor Economics, 3, 2101-2163. Burda, Michael C. and Jennifer Hunt. 2011. "What Explains the German Labor Market Miracle in the Great Recession?" Brookings Papers on Economic Activity, 42-1 (Spring), 273-335. Card, David and Alan Krueger. 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey." American Economic Review, 84, 772-793. Card, David and Alan Krueger. 1995. Myth and Measurement: The New Economics of the Minimum Wage. Princeton: Princeton University Press. Davis, Steven J. and Till M. von Wachter. 2011. "Recessions and the Cost of Job Loss." Brookings Papers on Economic Activity, 43(2): 1-72. Draca, Mirko, Stephen Machin and John van Reenen. 2011. "Minimum Wages and Firm Profitability." American Economic Journal: Applied Economics, 3, 129-151. Farber, Henry S. 1987. "The Analysis of Union Behavior." Handbook of Labor Economics, 2, 1039-1089. Jakubson, George. 1991. "Estimation and Testing of the Union Wage Effect Using Panel Data." Review of Economic Studies, 58, 971-991. Kennan, John. 1995. "The Elusive Effects of Minimum Wages." Journal of Economic Literature, 33, 1950-1965. Krusell, Per and Leena Rudanko. 2012. "Unions in a Frictional Labor Market." NBER Working paper no. 18218, July. Lazear, Edward. 1990. "Job Security Provisions and Employment." Quarterly Journal of Economics, 105, 699-725. Lee, David and Alexandre Mas. 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961-1999." Quarterly Journal of Economics, 127(1), 333-378. Lewis, H. Gregg. 1987. "Union Relative Wage Effects." Handbook of Labor Economics, 2, 1139-1181. Machin, Stephen and Alan Manning. 1999. "The Causes and Consequences of Longterm Unemployment in Europe." Handbook of Labor Economics, 3, 3085-3139. Machin, Stephen and Alan Manning. 2003. "Where the Minimum Wage Bites Hard: Introduction of Minimum Wages to a Low Wage Sector." Journal of the European Economic Association, 1, 154-180.

Machin, Stephen and Alan Manning. 2004. "A Test of Competitive Labor Market Theory: The Wage Structure Among Care Assistants in the South of England." Industrial and Labor Relations Review, 57, 371-385. Manning, Alan. 2003. Monopsony in Motion: Imperfect Competition in Labor Markets. Princeton: Princeton University Press. Nickell, Stephen and Richard Layard. 1999. "Labor Market Institutions and Economic Performance." Handbook of Labor Economics, 3, 3029-3084. V. Human Capital and Schooling Acemoglu, Daron and David Autor. Lectures in Labor Economics. Mimeograph MIT (Chapter 1, sections 1 to 3 and 6 to 7). Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 7, sections 1 to 5 and 8 to 10). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 2, sections 2 to 3.1 and 4). ***** 1.-2. Human Capital Theory and Returns to Education Abramitzky, Ran and Victor Lavy. 2011. "How Responsive is Investment in Schooling to Changes in Returns? Evidence from and Unusual Pay Reform in Israel's Kibbutzim." NBER Working Paper no. 17093, May. Angrist, Joshua D. 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administration Records." American Economic Review, 80, 313-336. Angrist, Joshua D. and Stacey Chen. 2008. "Long-Term Effect of Vietnam-Era Conscription: Schooling, Experience, and Earnings." Mimeograph, November 2008. Angrist, Joshua D. and Alan Krueger. 1991. "Does Compulsory Schooling Attendance Affect Schooling and Earnings?" Quarterly Journal of Economics, 106, 979-1014. Ashenfelter, Orley and Alan Krueger. 1994. Estimates of the Economic Return to Schooling from a New Sample of Twins, American Economic Review 84, 1157-1173 Becker, Gary. 1993. Human Capital. 3rd Edition. Chicago: University of Chicago Press. Bound, John and Sarah Turner. 2002. "Going to War and Going to College. Did World War II and The G.I. Bill Increase Educational Attainment for Returning Veterans?" Journal of Labor Economics, 20, 784-815. Card, David. 1999. "The Causal Effect of Education on Earnings." Handbook of Labor Economics, 3, 1801-1863. Dale, Stacey and Alan B. Krueger. 2011. "Estimating the Return to College Selectivity over the Career Using Administrative Data." NBER Working Paper no. 17159, June.

Freeman, Richard B. 1987. "Demand for Education." Handbook of Labor Economics, 1, 357-386. Freeman, Richard B. 1975. "Overinvestment in College Training." Journal of Human Resources, 10, 287-311. Griliches, Zvi. 1977. "Estimating the Returns to Schooling: Some Econometric Problems." Econometrica, 45, 1-22. Griliches, Zvi and William M. Mason. 1972. "Education, Income, and Ability." Journal of Political Economy, 80, S74-S103. Oreopoulos, Philip. 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter." American Economic Review, 96, 152-175. Mincer, Jacob. 1974. Schooling, Experience, and Earnings. New York: NBER. Willis, Robert J. 1987. "Wage Determinants." Handbook of Labor Economics, 1, 525-602. Willis, Robert J. and Sherwin Rosen. 1979. "Education and Self-Selection." Journal of Political Economy, 87, S7-S36. 3. School Organization Angrist, Joshua D. and Victor Lavy. 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement." Quarterly Journal of Economics, 114, 533-575. Angrist, Joshua D. and Victor Lavy. Forthcoming. The Effect of High Stakes High School Achievement Awards: Evidence from a Group-Randomized Trial. American Economic Review. Chetty, Raj, John N. Friedman and Jonah E. Rockoff. 2011. "The Long-Term Impacts of Teachers: Teacher Value-Added and Student Outcomes in Adulthood." NBER Working Paper no. 17699, December. Chetty, Raj, John Friedman, Nathaniel Hilger, Emmanuel Saez, Diane Schanzenbach, and Danny Yagan. 2011. How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project STAR, Quarterly Journal of Economics, 126, 1593-1660. Clark, Damon. 2009. "The Performance and Competitive Effects of School Autonomy." Journal of Political Economy, 117, 745-783. Cullen, Julie Berry, Brian A. Jacob and Steven D. Levitt. 2005. "The Impact of School Choice on Student Outcomes: An Analysis of the Chicago Public Schools." Journal of Public Economics, 89, 729-760. Dee, Thomas. 2011. "Conditional Cash Penalties in Education: Evidence from the Learnfare Experiment." Economics of Education Review, 30(5), 924-937.

Dobbie, Will and Roland G. Fryer Jr. 2011. "Are High Quality Schools Enough to Close the Achievement Gap? Evidence from a Social Experiment in Harlem." American Economic Journal: Applied Economics, 3(3): 158-187. Dobbie, Will and Roland G. Fryer, Jr. 2011. "Getting Beneath the Veil of Effective Schools: Evidence from New York City." NBER Working paper no. 17632, December. Figlio, David N. and Cecilia Rouse. 2006. "Do Accountability and Voucher Threats Improve Low-Performing Schools?" Journal of Public Economics, 90, 239-255. Fredriksson, Peter, Björn Öckert and Hessel Oosterbeck. 2011. "Long-Term Effects of Class Size." IZA Discussion Paper no. 5879, July. Fryer, Roland G. 2011. "Financial Incentives and Student Achievement: Evidence from Randomized Trials." Quarterly Journal of Economics, 126(4), 1755-1798. Fryer, Roland G. (forthcoming). "Teacher Incentives and Student Achievement: Evidence from New York City Public Schools." Journal of Labor Economics. Fryer, Roland G., Steven D. Levitt, John List, and Sally Sadoff. 2012. "Enhancing the Efficacy of Teacher Incentives through Loss Aversion: A Field Experiment." NBER Working paper no. 18237, July. Hanushek, Eric A. 2006. "School Resources." Handbook of the Economics of Education, 2, 865-908. Hanushek, Eric A. and Steven G. Rivkin. 2006. "Teacher Quality." Handbook of the Economics of Education, 2, 1051-1078. Hanushek, Eric A. and Ludger Wössmann. 2006. "Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence Across Countries." Economic Journal, 116, C63-C75. Hoxby, Carline M. 2000. "Does Competition among Public Schools Benefit Students and Taxpayers? American Economic Review, 90, 1209-1238. Jacob, Brian A. 2005. "Accountability, Incentives and Behavior: Evidence from School Reform in Chicago." Journal of Public Economics, 89, 761-796. Jacob, Brian A. and Steven D. Levitt. 2003. "Rotten Apples: An Investigation of the Prevalence and Predictors of Teacher Cheating." Quarterly Journal of Economics, 118, 843-877. Krueger, Alan B. 1999. "Experimental Estimates of Education Production Functions." Quarterly Journal of Economics, 114, 497-532. Lavy, Victor. 2002. "Evaluating the Effect of Teachers' Group Performance Incentives on Pupil Achievement." Journal of Political Economy, 110, 1286-1317.

Neal, Derek and Diane Whitmore Schanzenbach. Forthcoming. "Left Behind by Design: Proficiency Counts and Test-Based Accountability." Review of Economics and Statistics. Rodríguez-Planas, Nuria. (forthcoming). Longer-Term Impacts of Mentoring, Educational Services, and Learning Incentives: Evidence from a Randomized Trial in the U.S. American Economic Journal: Applied Economics. VI. Wage Inequality Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 8, sections 1 to 3). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 5, sections 2.3 and 4.2). 1. Wage Inequality and Technological Change Acemoglu, Daron. 2002. Technical Change, Inequality and the Labor Market. Journal of Economic Literature, 40, 7-72. Atkinson, Anthony B., Thomas Piketty and Emmanuel Saez. 2011. "Top Incomes in the Long Run of History." Journal of Economic Literature, 49(1), 3-71. Autor, David H., Lawrence F. Katz and Melissa Schettini Kearney. 2008. Trends in U.S. Wage Inequality: Re-Assessing the Revisionists. Review of Economics and Statistics, 90, 300-323. Blau, Francine D. and Lawrence M. Kahn. 1996. International Differences in Male Wage Inequality: Institutions versus Market Forces. Journal of Political Economy, 104, 791-837. Blau, Francine D. and Lawrence M, Kahn. 2005. Do Cognitive Test Scores Explain Higher US Wage Inequality? Review of Economics and Statistics, 87, 1984-1993. Bonhomme, Stéphane and Laura Hospido. 2012. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data." IZA Discussion Paper no. 6669. June. Card, David and John DiNardo. 2002. Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles. Journal of Labor Economics, 20, 733-783. Card, David, Jörg Heining and Patrick Kline. 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality." IZA Discussion Paper no. 7200. February. Card, David and Thomas Lemieux. 2001. Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis. Quarterly Journal of Economics, 116, 705-746.

DiNardo, John, Nicole Fortin and Thomas Lemieux. 1996. Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach. Econometrica, 64, 1001-1044. Dustmann, Christian, Johannes Ludsteck and Uta Schöenberg. 2009. Revisiting the German Wage Structure. Quarterly Journal of Economics, 124, 843-881. Goldin, Claudia and Lawrence Katz. 2009. The Race between Education and Technology: The Evolution of U.S. Educational Wage Differentials, 1890 to 2005. NBER Working Paper No. 12984, March. Gottschalk, Peter and Timothy M. Smeeding. 1997. Cross-National Comparisons of Earnings and Income Inequality. Journal of Economic Literature, 35, 633-687. Katz, Lawrence F. and David H. Autor. 1999. Changes in the Wage Structure and Earnings Inequality. Handbook of Labor Economics, 3, 1463-1555. Katz, Lawrence F. and Kevin M. Murphy. 1992. Changes in Relative Wages, 1963-1987: Supply and Demand Factors. Quarterly Journal of Economics, 107, 35-78. Krusell, Per, Lee Ohanian, Victor Rios-Rull and Giovanni Violante. 2000. Capital- Skill Complementarity and Inequality. Econometrica, 6, 1029-1053. Lee, David. 1999. Wage Inequality in the U.S. During the 1980 s: Rising Dispersion or Falling Minimum Wage. Quarterly Journal of Economics, 114, 941-1024. Leuven, Edwin, Hessel Oosterbeek and Hans van Ophem. 2004. Explaining International Differences in Male Skill Wage Differentials by Differences in Demand and Supply of Skill. Economic Journal, 114, 466-486. Machin, Stephen and John Van Reenen. 1998. Technology and Changes in Skill Structure: Evidence from Seven OECD Countries. Quarterly Journal of Economics, 113, 1215-44. Osberg, Lars and Timothy Smeeding. 2006. "Fair Inequality? Attitudes towards Pay Differentials: The United States in Comparative Perspective." American Sociological Review, 71, 450-473. Piketty, Thomas and Emmanuel Saez. Income Inequality in the United States, 1913 1998. Quarterly Journal of Economics, 118, 2003, 1-40. 2. Occupational Tasks and Labor Market Polarization Acemoglu, Daron and David H. Autor. 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings." in: Orley Ashenfelter and David Card (eds.): Handbook of Labor Economics Vol. 4. Amsterdam: Elsevier.

Autor, David H. and David Dorn. 2009. This Job is Getting Old: Measuring Changes in Job Opportunities using Occupational Age Structure. American Economic Review, Papers and Proceedings, 99, 45-51. Autor, David H. and David Dorn. 2013. The Growth of Low Skill Service Jobs and the Polarization of the U.S. Labor Market. American Economic Review, 103(5): 1553-1597. Autor, David H., Lawrence F. Katz and Melissa Schettini Kearney. 2006. The Polarization of the U.S. Labor Market. American Economic Review, Papers and Proceedings, 96, 189-194. Autor, David H., Frank Levy and Richard J. Murnane. 2002. Upstairs, Downstairs: Computers and Skills on Two Floors of a Large Bank. Industrial and Labor Relations Review, 55, 2002, 432-447. Autor, David H., Frank Levy and Richard J. Murnane. 2003. The Skill Content of Recent Technological Change: An Empirical Exploration. Quarterly Journal of Economics, 116, 1279-1333. Bartel, Ann P., Casey Ichniowski, and Kathryn L. Shaw. 2007. How Does Information Technology Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement and Worker Skills. Quarterly Journal of Economics, 122, 1721-1758. Bresnahan, Timothy F., Erik Brynolfsson, and Lorin M. Hitt. 2002. Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-level Evidence. Quarterly Journal of Economics, 117, 339-376. Caroli, Eve and John van Reenen. 2001. Skill-Biased Organizational Change: Evidence from a Panel of British and French Establishments. Quarterly Journal of Economics, 116, 1449-1492. Firpo, Sergio, Nicole Fortin and Thomas Lemieux. 2011. Occupational Tasks and Changes in the Wage Structure. IZA Discussion paper no. 5542, February. Goos, Maarten and Alan Manning. 2007. Lousy and Lovely Jobs: The Rising Polarization of Work in Britain. Review of Economics and Statistics 89(1), 118-133. Goos, Maarten, Alan Manning and Anna Salomons. 2009. The Polarization of the European Labor Market. American Economic Review, Papers and Proceedings, 99, 58-63. Goos, Maarten, Alan Manning and Anna Salomons. 2009. Recent Changes in the European Employment Structure. Mimeograph, September. Michaels, Guy, Ashwini Natraj and John Van Reenen. Forthcoming. "Has ICT Polarized Skill Demand? Evidence from Eleven Countries over 25 Years." Review of Economics and Statistics.

Spitz-Oener, Alexandra. 2006. Technical Change, Job Tasks and Rising Educational Demands: Looking Outside the Wage Structure. Journal of Labor Economics, 2006, 24, 235-270. Weiss, Matthias. 2008. Skill-Biased Technological Change: Is there Hope for the Unskilled? Economics Letters, 100, 439-441. VII. Migration Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 9, sections 1 to 4). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 10, section 2.4). ***** Algan, Yann, Christian Dustmann, Albrecht Glitz and Alan Manning. 2010. "The Economic Situation of First- and Second-Generation Immigrants in France, Germany, and the United Kingdom" Economic Journal, 120, F4-F30. Bleakley, Hoyt and Aimee Chin. 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants." Review of Economics and Statistics, 86, 481-496. Borjas, George J. 1987. "Self-Selection and the Earnings of Immigrants." American Economic Review, 77, 531-553. Borjas, George J. 1994. "The Economics of Immigration." Journal of Economic Literature, 32, 1667-1717. Borjas, George. 2003. The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market. Quarterly Journal of Economics, 118, 1335 1374. Borjas, George. 2009. The Analytics of the Wage Effect of Immigration. NBER Working Paper No. 14796, March. Borjas, George J., Jeffrey Grogger, and Gordon H. Hanson. Forthcoming. Substitution between Immigrants, Natives, and Skill Groups. Journal of European Economic Association. Card, David. 1990. The Impact of the Mariel Boatlift on the Miami Labor Market. Industrial and Labor Relations Review, 43, 245-257. Card, David, Christian Dustmann and Ian Preston. 2012. "Immigration, Wages, and Compositional Amenities." Journal of European Economic Association, 10(1), 78-119.

Carrasco, Raquel, Juan F. Jimeno and Ana Ortega. 2008. "The Effect of Immigration on the Labor Market Performance of Native-Born Workers: Some Evidence for Spain." Journal of Population Economics, 21, 627-648. Cortés, Patricia. 2008. "The Effect of Low-Skilled Immigration on U.S. Prices: Evidence from CPI Data." Journal of Political Economy, 116, 381-422. Cortés, Patricia and José Tessada. 2011. "Low-skilled Immigration and the Labor Supply of Highly Skilled Women." American Economic Journal: Applied Economics, 3(3), 88-123. D'Amuri, Francesco and Giovanni Peri. 2012. "Immigration, Jobs and Employment Protection: Evidence from Europe." IZA Discussion Paper, no. 17139. Johnson, George E. 1980. "The Labor Market Effects of Immigration." Industrial and Labor Relations Review, 33, 331-341. Halla, Martin, Alexander F. Wagner and Josef Zweimüller. 2012. "Does Immigration into Their Neighborhoods Incline Voters Toward the Extreme Right? The Case of the Freedom Party of Austria." IZA Discussion Paper, no. 6575. May. Hanson, Gordon H. and Craig McIntosh. 2012. "Birth Rates and Border Crossings: Latin American Migration to the US, Canada, Spain, and the UK." Economic Journal, 122(561), 707-726. Lewis, Ethan G. 2005. How Do Local Labor Markets in the U.S. Adjust to Immigration? Federal Reserve Bank of Philadelphia Business Review, Q1, 16-25. Lewis, Ethan G. 2011. "Immigration, Skill Mix, and Capital-Skill Complementarity. Quarterly Journal of Economics, 126, 1029-1069. Lewis, Ethan G. 2011. "Immigrant-Native Substitutability: The Role of Language Ability." NBER Working Paper no. 17609, November. Lubotsky, Darren. 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings." Journal of Political Economy, 115, 820-867. Ortega, Francesc. 2008. "The Short-Run Effects of a Large Immigration Wave: Spain 1998-2008." UPF Mimeograph, December. Peri, Giovanni. 2011. "The Impact of Immigration on Native Poverty through Labor Market Competition." NBER Working Paper no. 17570, November. Peri, Giovanni and Chad Sparber. 2009. Task Specialization, Immigration and Wages. American Economic Journal: Applied Economics, 1, 135-169. VIII. Discrimination

Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 10). Cahuc, Pierre and André Zylberberg. 2004. Labor Economics. Cambridge: MIT Press (Chapter 5, sections 2.3 and 4.2). ***** Altonji, Joseph and Rebecca Blank. 1999. Race and Gender in the Labor Market. Handbook of Labor Economics, 3, 3143-3259. Charles, Kerwin Kofi and Jonathan Guryan. 2011. "Studying Discrimination: Fundamental Challenges and Recent Progress." NBER Working Paper no. 17156, June. 1. Discrimination Theories Aigner, Dennis J. and Glen G. Cain. 1977. "Statistical Theories of Discrimination in Labor Markets." Industrial and Labor Relations Review, 30, 175-187. Arrow, Kenneth J. 1973. "The Theory of Discrimination." In Ashenfelter and Rees, eds., Discrimination in Labor Markets. Princeton: Princeton University Press. Arrow, Kenneth J. 1998. "What Has Economics to Say about Racial Discrimination?" Journal of Economic Perspectives, 12, 91-100. Becker, Gary. 1971. The Economics of Discrimination. 2nd Edition. Chicago: University of Chicago Press, 1971. Black, Dan A. 1995. Discrimination in an Equilibrium Search Model. Journal of Labor Economics, 13, 309-324. Coate, Stephen and Glenn Loury. 1993. "Will Affirmative Action Eliminate Negative Stereotypes?" American Economic Review, 83 (5), 1220-1240. Goldberg, Matthew S. 1982. Discrimination, Nepotism, and Long-Run Wage Differentials. Quarterly Journal of Economics, 97, May, 307-319. Holzer, Harry and Keith R. Ihlanfeldt. 1998. Customer Discrimination and Employment Outcomes for Minority Workers. Quarterly Journal of Economics, 113, 835-867. Lang, Kevin, Michael Manove and William Dickens. 2005. Racial Discrimination in Labor Markets with Announced Wages. American Economic Review, 95, 1327-1340. Lang, Kevin and Michael Manove. Forthcoming. "Education and Labor-Market Discrimination." American Economic Review. Phelps, Edmund. 1972. The Statistical Theory of Racism and Sexism. American Economic Review, 62, 533-539.

2. Evidence for Discrimination Altonji, Joseph and Charles Pierret. 2001. Employer Learning and Statistical Discrimination. Quarterly Journal of Economics, 116, 313-350. Bagues, Manuel F. and Berta Esteve-Volart. Forthcoming. "Can Gender Parity Break the Glass Ceiling? Evidence from a Repeated Randomized Experiment." Review of Economic Studies. Baker, Michael and Kevin Milligan. 2013. "Boy-Girl Differences in Parental Time Investments: Evidence from Three Countries." NBER Working Paper no. 18893. March. Bertrand, Marianne and Sendhil Mullainathan. 2004. Are Emily and Greg More Employable than Latisha and Jamal? A Field Experiment on Labor Market Discrimination. American Economic Review, 94, 991-1013. Betrand, Marianne, Jessican Pan and Emir Kamenica. 2013. "Gender Identity and Relative Income within Households." NBER Working Paper no. 19023. May. Booth, Alison. 2009. "Gender and Competition." Labour Economics. 16 (6), 599-690. Booth, Alison and Andrew Leigh. 2010. "Do Employers Discriminate by Gender? A Field Experiment in Female-Dominated Occupations." Economics Letters, 107(2), 236-238. Blau, Francine and Lawrence Kahn. 1997. "Swimming Upstream: Trends in the Gender Wage Differential in the 1980s." Journal of Labor Economics, 15, 1-42. Blau, Francine and Lawrence Kahn. 2003. "Understanding International Differences in the Gender Pay Gap." Journal of Labor Economics, 21, 106-144. Blau, Francine and Lawrence Kahn. 2006. "The U.S. Gender Pay Gap in the 1990s: Slowing Convergence." Industrial and Labor Relations Review, 60, 45-66. Blinder, Alan. 1974. Toward and Economic Theory of Income Distribution. Cambridge: MIT Press. Charles, Kerwin K. and Jonathan Guryan. 2008. Prejudice and Wages: An Empirical Assessment of Becker s The Economics of Discrimination. Journal of Political Economy, 116, 773-809. Darity, William A. and Patrick L. Mason. 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender." Journal of Economic Perspectives, 12, 63-90. De la Rica, Sara, Juan J. Dolado and Vanesa Llorens. 2008. "Ceilings or Floors?: Gender Wage Gaps by Education in Spain." Journal of Population Economics, 20, 751-776.

Fryer, Roland G., Devah Pager and Jörg L. Spenkuch. 2011. "Racial Disparities in Job Finding and Offered Wages." NBER Working Paper no. 17462, September. Gneezy, Uri, John List and Michael K. Price. 2012. "Toward an Understanding of Why People Discriminate: Evidence from a Series of Natural Field Experiments." NBER Working Paper no. 17855, February. Goldin, Claudia and Cecilia Rouse. 2000. "Orchestrating Impartiality: The Impact of Blind Auditions on Female Musicians." American Economic Review, 90, 715-741. Heckman, James J. 1998. "Detecting Discrimination." Journal of Economic Perspectives, 12, 101-116. Kaas, Leo and Christian Manger. 2010. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment." German Economic Review, 13(1), 1-20. List, John. 2004. "The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field." Quarterly Journal of Economics, 119, 49-89. Lopez Boo, Florencia, Martin A. Rossi and Sergio Urzua. 2012. "The Labor Market Return to an Attractive Face: Evidence from a Field Experiment." IZA Discussion Paper no. 6356, February. Loury, Glenn C. 1998. "Discrimination in the Post-Civil Rights Era: Beyond Market Interactions." Journal of Economic Perspectives, 12, 117-126. Mulligan, Casey and Yona Rubinstein. 2008. Selection, Investment, and Women s Relative Wages over Time. Quarterly Journal of Economics, 123, 1061-1110. Neal, Derek. 2004. "The Measured Black-White Wage Gap among Women Is Too Small." Journal of Political Economy, 112, S1-S28. Oaxaca, Ronald. 1973 "Male-Female Wage Differentials in Urban Labor Markets." International Economic Review, 14, 693-709. Olivetti, Claudia and Barbara Petrongolo. 2008. Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps. Journal of Labor Economics, 26, 621-654. Pager, Devah, Bruce Western and Bart Bonikowski. 2009. "Discrimination in a Low Wage Labor Market: A Field Experiment." American Sociological Review, 74, 777-799. Pope, Devin G. and Justin R. Sydnor.2011. "What's in a Picture? Evidence of Discrimination from Prosper.com." Journal of Human Resources (46), 53-92. Riach, Peter A. and Judith Rich. 2002. "Field Experiments of Discrimination in the Market Place." Economic Journal, 112, F480-F518. Weber, Andrea and Christine Zulehner. 2009. "Competition and Gender Prejudice: Are Discriminatory Employers Doomed to Fail?" IZA Discussion Paper No. 4526. October.

Yinger, John. 1998. "Evidence on Discrimination in Consumer Markets." Journal of Economic Perspectives, 12, 23-40. IX. Social Environment Borjas, George J. 2000. Labor Economics. 2nd Edition. Boston: McGraw-Hill (Chapter 8, section 5). 1. Family Background Behrman, Jere R. and Mark R. Rosenzweig. 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?" American Economic Review, 92, 323-334. Björkland, Anders, Mikael Lindahl and Erik Plug. 2006. The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data. Quarterly Journal of Economics, 121, 999-1028. Black, Sandra E., Paul J. Devereux and Kjell G. Salvanes. 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital." American Economic Review, 95, 437-449. Black, Sandra E. and Paul J. Devereux. 2010. "Recent Developments in Intergenerational Mobility." IZA Discussion Paper No. 4866. April. Bowles, Samuel and Herbert Gintis. 2002. "The Inheritance of Inequality." Journal of Economic Perspectives, 16, 3-30. Cesarini, David, Christopher T. Dawes, Magnus Johannesson, Paul Lichtenstein and Bjorn Wallace. 2009. Genetic Variation in Preferences for Giving and Risk-Taking. Quarterly Journal of Economics, 124, 809-842. Corak, Miles. 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility." Journal of Economic Perspectives, 27(3): 79-102. Dickens, William and James Flynn. 2001. Heritability Estimates versus Large Environmental Gains: The IQ Paradox Resolved. Psychological Review, 108, 346-369. Lee, Chul-In and Gary Solon. 2009. "Trends in Intergenerational Income Mobility." Review of Economics and Statistics, 91, 766-772. Plug, Erik and Wim Vijverberg. 2003. "Schooling, Family Background, and Adoption: Is It Nature or Nurture?" Journal of Political Economy, 111, 611-641. Sacerdote, Bruce. 2007. How Large are the Effects from Changes in Family Environment? A Study of Korean American Adoptees. Quarterly Journal of Economics, 122, 119-157. Solon, Gary. 2002. "Cross-Country Differences in Intergenerational Earnings Mobility." Journal of Economic Perspectives, 16, 59-66.

2. Peer Effects and Networks Andersson, Fredrik, Simon Burgess and Julia Lane. 2009. "Do as the Neighbors Do: The Impact of Social Networks on Immigrant Employment." IZA Discussion Paper no. 4423, September. Angrist, Joshua D. and Kevin Lang. 2004. "Does School Integration Generate Peer Effects? Evidence from Boston's Metco Program." American Economic Review, 94, 1613-1634. Arcidiacono, Peter and Sean Nicholson. 2005. "Peer Effects in Medical School." Journal of Public Economics, 89, 327-350. Bandiera, Oriana, Iwan Barankay and Imran Rasul. Forthcoming. "Social Incentives in the Workplace." Review of Economic Studies. Bayer, Patrick, Stephen L. Ross and Giorgio Topa. 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes." Journal of Political Economy, 116, 1150-1196. Bayer, Patrick, Randi Hjalmarsson and David Pozen. 2009. "Building Criminal Capital Behind Bars: Peer Effects in Juvenile Corrections." Quarterly Journal of Economics, 124, 105-147. Beaman, Lori A. 2012. "Social Networks and the Dynamics of Labor Market Outcomes: Evidence from Refugees Resettled to the U.S." Review of Economic Studies, 79(1):128-161. Black, Sandra E., Paul J. Devereux, and Kjell G. Salvanes. Forthcoming. "Under Pressure? The Effects of Peers on Outcomes of Young Adults." Journal of Labor Economics. Brown, Jennifer. 2011. "Quitters Never Win: The (Adverse) Incentive Effects of Competing with Superstars." Journal of Political Economy, 119(5): 982-1013. Calvó-Armengol, Antoni and Matthew O. Jackson. 2004. "The Effects of Social Networks on Employment and Inequality." American Economic Review, 94, 426-454. Carrell, Scott E., Bruce I. Sacerdote and James E. West. 2010. "From Natural Variation to Optimal Policy: A Cautionary Tale in How Not to Improve Student Outcomes." Mimeo, September. Card, David and Laura Giuliano. Forthcoming. "Peer Effects and Multiple Equilibria in the Risky Behavior of Friends." Review of Economics and Statistics. Clark, Gregory and Neil Cummins. 2013. "What Is the True Rate of Social Mobility? Surnames and Social Mobility, England, 1800-2012." Working Paper. Dustmann, Christian, Albrecht Glitz and Uta Schönberg. 2011. "Referral-based Job Search Networks." IZA Discussion Paper no. 5777. June.

Glitz, Albrecht. 2013. "Coworker Networks in the Labour Market." IZA Discussion Paper no. 7392. May. Goel, Deepti and Kevin Lang. 2009. "Social Ties and the Job Search of Recent Immigrants." NBER Working Paper no. 15186, July. Ioannides, Yannis M. and Linda Datcher Loury. 2004 "Job Information Networks, Neighborhood Effects, and Inequality." Journal of Economic Literature, 42, 1056-1093. Jackson, Matthew O. Forthcoming. "An Overview of Social Networks and Economic Applications." Handbook of Social Economics. Lavy, Victor and Analía Schlosser. 2011. "Mechanisms and Impacts of Gender Peer Effects at School." American Economic Journal: Applied Economics, 3, 1-33. Lavy, Victor, Olmo Silva and Felix Weinhardt. 2012. "The Good, the Bad and the Average: Evidence on the Scale and Nature of Ability Peer Effects in Schools." Journal of Labor Economics, 30(2),367-414. Mas, Alexandre and Enrico Moretti. 2009. "Peers at Work." American Economic Review, 99, 112-145. Montgomery, James D. 1991. Social Networks and Labor Market Outcomes: Toward an Economic Analysis. American Economic Review, 81, 1408-1418. Moretti, Enrico. 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions." American Economic Review, 94, 656-690. Sacerdote, Bruce. 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates." Quarterly Journal of Economics, 116, 681-704. X. Fairness and Norms Akerlof, George A. 1982. "Labor Contracts as Partial Gift Exchange." Quarterly Journal of Economics, 97, 543-569. Bewley, Truman F. 1995. "A Depressed Labor Market as Explained by Participants." American Economic Review, 85, 250-254. Card, David, Alexandre Mas, Enrico Moretti, and Emmanuel Saez. Forthcoming. "Inequality at Work: The Effect of Peer Salaries on Job Satisfaction." American Economic Review. Easterlin, Richard A. 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence." In: Paul A. David and Melvin W. Reder (eds.): Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz. New York: Academic Press.

Fehr, Ernst, Lorenz Götte and Christian Zehnder. 2009. "A Behavioral Account of the Labor Market: The Role of Fairness Concerns." Annual Review of Economics, 1, 355-384. Fehr, Ernst, Georg Kirchsteiger and Arno Riedl. 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation." Quarterly Journal of Economics, 108, 437-459. Fehr, Ernst and Klaus Schmidt. 1999. "A Theory of Fairness, Competition, and Cooperation." Quarterly Journal of Economics, 114, 817-868. Gneezy, Uri and John A. List. 2006. "Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments." Econometrica, 74, 1365-1384. Kahneman, Daniel and Amos Tversky. 1979. "Prospect Theory: An Analysis of Decisions under Risk." Econometrica, 47, 313-327. Kube, Sebastian, Michel André Maréchal and Clemens Puppe. 2012. "The Currency of Reciprocity - Gift-Exchange in the Workplace." American Economic Review, 102(4): 1644-1662. Lee, Darin and Nicholas G. Rupp. 2007. "Retracting a Gift: How Does Employee Effort Respond to Wage Reductions?" Journal of Labor Economics, 25, 725-762. Levitt, Steven D. and John A. List. 2008. "Homo Economicus Evolves." Science, 319, 909-910. List, John A. 2007. "On the Interpretation of Giving in Dictator Games." Journal of Political Economy, 115, 482-493. Luttmer, Erzo F.P. 2005. "Neighbors as Negatives: Relative Earnings and Well-Being." Quarterly Journal of Economics, 120, 963-1002. Marshall, Alfred. 1925. "A Fair Rate of Wages." In: A.C. Pigou, ed., Memorials of Alfred Marshall, pp. 212-226. London: Macmillan. Mas, Alexandre. 2006. "Pay, Reference Points, and Police Performance." Quarterly Journal of Economics, 121, 783-821. Papay, John P., Richard J. Murnane and John B. Willett. 2011. "How Performance Information Affects Human-Capital Investment Decisions: The Impact of Test-Score Labels on Educational Outcomes." NBER Working Paper no. 17120, June. Pope, Devin G. and Maurice E. Schweitzer. 2011. "Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes." American Economic Review, 101(1), 129-157.