Demography, Immigration and Labor Markets Syllabus and Outline Demography, Immigration and Labor Markets (4.5 ECTS) Spring 2018 Ana Fernandes ana.fernandes@bfh.ch www.anafernandes.name Class Time: Thursdays: 9:15-12:00 Office Hours: After class or by appointment (e-mail) PER 21 G420 Class Location: PER 21 F130 Course Description In this course, we will look into important trends and phenomena characterizing the world of today. A first area of interest will concern the notable changes in population growth rates and longevity that took place over the past decades, their diverse geographical distribution across the globe, as well as the challenges posed by such changes and the projected future path of population size. We will also devote attention to several labor market topics, namely discrimination, migration and female labor force participation. What is discrimination in Economics? Why would employers discriminate among candidate employees? What methods are there to detect discriminatory behaviour? Regarding migration, we will look into theoretically based explanations of the effects of migrants on the labor market opportunities of natives and, importantly, at what the data say about those effects. Whether or not migrants contribute to lower wages and higher unemployment rates of natives is one of the main topics of interest. Finally, we will discuss the enormous change in the labor force participation rate of women in the past century and reasons underlying that occurrence. Organization We will resort to empirical studies and readings from the Reading List below. Course information will be permanently updated on the course s Moodle page: https://moodle2.unifr.ch/course/view.php?id=17195. http://dilm.anafernandes.name
Course Materials Slides posted weekly in Moodle Occasional readings from popular and/or academic press as announced in class Articles from the reading list as announced in the lectures Evaluation There will be one written final exam (60 minutes) at the end of the semester. Students have two options regarding evaluation. They may: 1) Take the written exam exclusively; or 2) Make a 20 minute presentation of a paper from the reading list and additionally take the writen exam. The weight on the presentation is 30% and the weight on the exam is 70%. The choice of the second option must be communicated to the lecturer during the first 2 weeks of the semester. Calendar The calendar for the course will be as follows: Time Weeks 1-2 Weeks 3-6 Weeks 7-12 Weeks 12-13 Week 14 Topic Demographic trends Labor Market Discrimination Immigration Female Labor Force Participation Exam preparation 2
Reading List 1. Demographic Trends Maddison, Angus (2010) Contours of the World Economy, Oxford University Press *United Nations, Department of Economic and Social Affairs, Population Division (2015) World Population Prospects: The 2017 Revision. Key Findings and Advance Tables. ESA/P/WP.248 Becker, Bary S. and H. Gregg Lewis (1973) On the Interaction Between the Quantity and the Quality of Children Journal of Political Economy 81: S279-S288 De la Croix, David and Faustine Perrin (2016) French Fertility and Education Transition: Rational Choice versus Cultural Diffusion Mimeo Doepke, Matthias and Fabian Kindermann (2016) Bargaining Over Babies: Theory, Evidence and Policy Implications Mimeo, Nortwestern University Lee, Ronald (2015) Becker and the Demographic Transition Journal of Demographic Economics 81: 67 74. Lee, Ronald (2003) The Demographic Transition: Three Centuries of Fundamental Change Journal of Economic Perspectives 17(4), 167-190. 2. Discrimination in the Labor Market Aigner, Dennis J. and Glen G. Cain (1997) Statistical Theories of Discrimination in Labor Markets International Labor Relations Review 30: 175-187 Arrow, Kenneth J. (1973) The Theory of Discrimination In Orley Ashenfelter and Albert Rees, eds. Discrimination in Labor Markets. Princeton, N.J.: Princeton University Press, 1973. 3 33 Author, David (2009) Lecture Note: manuscript The Economics of Discrimination I Unpublished Becker, Gary S. (1971) The Economics of Discrimination (2 nd ed) University of Chicago Press, Chicago and London Bertrand, Marianne and Esther Duflo (2016) Field Experiments on Discrimination NBER Working Paper 22014 *Bertrand, Marianne and Sendhil Mullainathan (2004) Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination. The American Economic Review 94: 991-1013 Black, Dan A. (1995) Discrimination in an Equilibrium Search Model Journal of Labor Economics 13: 309-334 *Charles, Kerwin Kofi and Jonathan Guryan (2008) Prejudice and Wages: An Empirical Assessment of Becker s The Economics of Discrimination Journal of Political Economy 116: 773-809 3
Charles, Kerwin Kofi and Jonathan Guryan (2007) Prejudice and the Economics of Discrimination NBER Working Paper 13661 *Doleac, Jennifer L. and Luke C. D. Stein (2013) The Visible Hand: Race and Online Market Outcomes The Economic Journal 123: F469-F492 Goldberg, Matthew S. (1982) Discrimination,Nepotism and Long-Run Wage Differentials Quarterly Journal of Economics 97: 307-319 *Goldin, Claudia; and Cecilia Rouse (2000) Orchestrating Impartiality: The Impact of Blind Auditions on Female Musicians American Economic Review 90: 715-741 *Guryan, Jonathan and Kerwin Kofi Charles (2013) Taste-Based or Statistical Discrimination: The Economics of Discrimination Returns to Its Roots The Economic Journal 123: F417-F432 Heckman, James, and Peter Siegelman. 1993. The Urban Institute Audit Studies: Their Methods and Findings. In Clear and Convincing Evidence: Measurement of Discrimination in America, ed. Fix and Struyk, 187 258. Washington, D.C.: The Urban Institute Press. Heckman, James J. (1998) Detecting Discrimination Journal of Economic Perspectives 12: 101-116 Lang, Kevin; Michael Manove and William T. Dickens (2005) Racial Discrimination in Labor Markets with Posted Wage Offers American Economic Review 95: 1327-1340. *Neumark, David (2016) Experimental Research on Labor Market Discrimination NBER Working Paper 22022 Neumark, David (2012) Detecting Discrimination in Audit and Correspondence and Audit Studies The Journal of Human Resources 45: 1128-1157 Phelps, Edmund S. (1972) "The Statistical Theory of Racism and Sexism" American Economic Review, 62: 659-61 *Rich, Judy (2014) What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted Since 2000 IZA Discussion Paper No. 8584 *Weichselbaumer, Doris (2004) Is it Sex or Personality? The Impact of Sex Stereotypes on Discrimination in Applicant Selection Eastern Economic Journal 30: 159-186 3. Immigration Basten, Christoph, and Michael Siegenthaler (2016) Do immigrants take or create residents jobs? Evidence from the introduction of free movement of workers in Switzerland Mimeo Borjas, George J. (2011) Social Security Eligibility and the Labor Supply of Older Immigrants" Industrial and Labor Relations Review 64: 485-501 Borjas, George J. (2005) "The Labor Market Impact of High-Skill Immigration" AEA Papers and Proceedings 56-60 *Borjas, George (2003) The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market The Quarterly Journal of Economics, 118 (4), 1335-1374. 4
*Borjas, George (1999) The Economic Analysis of Immigration, in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3A, Elsevier, pp. 1697 1760 Borjas, George (1994) The Economics of Immigration Journal of Economic Literature 32(4), 1167-1717 Cortes, Patricia (2008) The Effect of Low-skilled Immigration on US Prices: Evidence from CPI Data, Journal of Political Economy, 116(3), 381-422 Dustmann, Christian; Francesca Fabbri, and Ian Preston (2005) The Impact of Immigration on the British Labor Market, The Economic Journal, 2005, 115 (507), F324 F341 Favre, Sandro (2011) The Impact of Immigration on the Wage Distribution in Switzerland University of Zurich WP 22 *Fibbi, Rosita; Mathias Lerch and Philippe Wanner (2006) Unemployment and Discrimination Against Youth of Immigrant Origin in Switzerland: When the Name Makes the Difference, Journal of International Migration and Integration 7: 351-366 Fibbi, Rosita; Mathias Lerch and Philippe Wanner (2007) Naturalization and Socio-Economic Characteristics of Youth of Immigrant Descent in Switzerland, Journal of Ethics and Migration Studies 33: 1121-1144 *Friedberg, Rachel M. (2001) The Impact of Mass Migration on the Israeli Labor Market, The Quarterly Journal of Economics, 116(4), 1373 1408 *Kaas, Leo and Christian Manger (2011) Ethnic Discrimination in Germany s Labour Market: A Field Experiment German Economic Review 13: 1-20. Kerr, Sari Pekkala and William R. Kerr (2011) Economic Impacts of Immigration: a Survey Finnish Economic Papers 24: 1-32 Lewis, Ethan (2013) Immigration, Skill Mix, and Capital-Skill Complementarity. Quarterly Journal of Economics 126(2), 1029-1069 Lewis, Ethan (2005) How Do Local Labor Markets in the U.S. Adjust to Immigration? Federal Reserve Bank of Philadelphia Business Review, First Quarter OECD (2013), International Migration Outlook 2013, OECD Publishing, Paris *Okkerse, Liesbet (2008) How to Measure Labor Market Effects of Immigration: A Review Journal of Economic Surveys 22:1-30 Ottaviano, Gianmarco I.P., and Giovanni Peri (2012) Rethinking the Effect of Immigration on Wages Journal of the European Economic Association 10(1), 152-197 Peri, Giovanni (2011) Rethinking the Area Approach: Immigrants and the labor market market in California Journal of International Economics 84(1), 1-14 *Ruffner, Jan, and Michael Siegenthaler (2016) From Labor to Cash Flow? The Abolition of Immigration Restrictions and the Performance of Swiss Firms KOF WP 16-424. *Weichselbaumer, Doris (2016) Discrimination Against Migrant Job Applicants in Austria: An Experimental Study German Economic Review 18(2), 237-265. 5
4. Female Labor Force Participation Albanesi, S. and Claudia Olivetti (2013) Maternal Health and the Baby Boom, Quantitative Economics 5: 225-269 *Albanesi, S. and Claudia Olivetti (2016) "Gender Roles and Medical Progress" Journal of Political Economy 124: 650-695 Beerli, Andreas, and Giovanni Peri (2016) The Labor Market Effects of Opening the Border: Evidence From Switzerland NBER WP 21319 Blau, Francine D. and Lawrence M. Kahn (2017) The Gender Wage Gap: Extent, Trends and Explanations Journal of Economic Literature 53(3), 789-865. Caucutt, E. M.; Nezih Guner and John Knowles (2002) "Why Do Women Wait? Matching, Wage Inequality and the Incentives for Fertility Delay" Review of Economic Dynamics 5: 815-855 *Cavalcanti, Tiago and José Tavares (2016) The Output Cost of Gender Discrimination: A Model-Based Macroeconomic Estimate The Economic Journal 126: 109-134 *Goldin, Claudia (1995) The U-Shaped Female Labor Force Function in Economic Development and Economic History in Schultz TP (ed.) Investment in Women s Capital and Economic Development, University of Chicago Press, 61-90 *Goldin, Claudia (2014) A Grand Gender Convergence: Its Last Chapter American Economic Review 104: 1091-1119 Mookherjee, Dilip; Silvia Prina and Debraj Ray (2012) A Theory of Occupational Choice with Endogenous Fertility American Economic Journal: Microeconomics 4:1-34 Olivetti, Claudia (2006) "Changes in Woman's Hours of Market Work: The Role of Returns to Experience" Review of Economic Dynamics 9: 557-587 * Starred items are recommended reading 6