Problem Set #1 (due July 9--you can pick up your graded problem set on the door of 608-5):
Find UR, LFPR, and E/P in the United States for (1) the most recent month available and (2) the month you were born. I recommend using the BLS website for this. (Please use the seasonally adjusted series.)
Six text problems from Chapter 2: 2, 3, 5, 8, 9, 11.
Additional Problem: In lecture we assumed that the wage rate w does not change with the amount of hours worked. Now suppose that employers begin paying an overtime premium of 1.5 times the usual wage for any hours worked over 40 hours. What does this do to labor supply for workers who previously worked
a. 40 hours per week
b. more than 40 hours per week
c. less than 40 hours per week
Problems Set #2 (due July 16--you can pick up your graded problem set on the door of 608-5):
From Chapter 3: 4, 7, 8, 12.
From Chapter 4: 4, 7, 9, 10.
Problems Set #3 (due July 23--you can pick up your graded problem set on the door of 608-5):
Text Problems: From Chapter 5: 3, 5, 6, 9, 12; From Chapter 6: 4, 6, 9
Additional Problem: Consider the competitive firm with production function , where x1 is capital, x2 is unskilled workers, and x3 is skilled workers. The firm initially maximizes profits using inputs x1=200, x2=70, and x3=50. The price of capital is initially $80 per unit. Suppose the price of capital increases to $96 per unit, and as a consequence the firm increases its employment of unskilled workers to 77 and decreases its employment of skilled workers to 45.
(a) What is the cross-elasticity of demand for unskilled workers with respect to capital?
(b) What is the cross-elasticity of demand for skilled workers with respect to capital?
(c) Are the inputs "unskilled labor" and "capital" substitutes or complements? Why?
(d) Are the inputs "skilled labor" and "capital" substitutes or complements? Why?
(e) Are these results consistent with the capital-skill complementarity hypothesis? Why?
Problems Set #4 (due July 30--you can pick up your graded problem set on the door of 608-5):
From Chapter 7: 2, 3, 6, 8, 10.
From Chapter 8: 5, 6.
Problems Set #5 (due August 6--you can pick up your graded problem set on the door of 608-5):
From Chapter 8: 10, 11
From Chapter 9: 1, 3, 4, 5
From Chapter 10: 3, 6, 11
Problems Set #6 (due August 13--you can pick up your graded problem set on the door of 608-5):
From Chapter 10: 5, 7, 10
From Chapter 11: 5, 6, 7
From Chpater 12: 3, 6, 7, 10
Problem Set #7 (this problem set will not be graded. Solutions were distributed in class):
From Chapter 13: 1, 3, 5, 6, 7
A good example of this kind of writing is a piece entitled "The Immigration Equation" written by Roger Lowenstein and published in the New York Times Magazine on July 9, 2006. Lowenstein summarized many articles that Professor Borjas and our own Professor Card at Berkeley have written on the effects of immigration on the wages on non-immigrants. He wrote about where these researchers agree, and where they disagree. (Mr. Lowenstein wrote 7940 words; I expect you to write about 500 words).
You will be evaluated based on how much understanding you show of the papers you read, and on your analysis of these papers, not on your command of English spelling and grammar. However, poor writing can affect how much understanding you show. If you need writing help, I suggest this resource: The Student Learning Center
The list of recommended articles is here.