Economics 2810a

Fall 2013 Semester

Department of Economics
Harvard University

Lawrence F. Katz
Littauer 224
[email protected]

LABOR ECONOMICS
Monday, Wednesday 10:00-11:30
This is a graduate course in labor economics, appropriate for graduate students in the Department
of Economics and other students with preparation in microeconomic theory and econometrics.
The course teaches core topics in the field of labor economics as well as empirical methods for
applied microeconomic analysis.
The syllabus contains readings of two sorts. The first, designated by an asterisk, will be
emphasized in the lectures. Readings with no asterisk may be discussed in lectures briefly, but
are primarily offered as a guide to the literature.
Many comprehensive (although some are rather dated) surveys of key topics in labor economics
are available in the Handbook of Labor Economics, published by Elsevier Science and available
on-line from Science Direct through the Harvard Libraries. Volumes 1 and 2 from 1986 are
edited by Orley Ashenfelter and Richard Layard. Volume 3 (in three volumes) from 1999 and
Volume 4 (in two volumes) from 2010 are edited by Orley Ashenfelter and David Card. Useful
undergraduate textbooks in labor economics for introductory background reference include
George Borjas, Labor Economics, 6th Edition, McGraw Hill, 2013; and Derek Laing, Labor
Economics, Norton, 2011. For what it is worth, an existing graduate level textbook is Pierre
Cahuc and Andr Zylberberg, Labor Economics, MIT Press, 2004. And a superb guide (with
attitude) to the key empirical methods used in labor economics is Joshua Angrist and JrnSteffen Pischke, Mostly Harmless Econometrics, Princeton University Press, 2009.
Preparation for research: Students are strongly encouraged to attend the weekly Labor
Economics Workshop, which meets on Wednesday from 4:00 to 5:30 in Littauer M-16.
Grading: Students will prepare a final examination (50%), a research paper (40%), and a referee
report (10%). The referee report should be a serious but brief (3 to 5 page) critical evaluation of
one (or two related) readings without an asterisk on the syllabus or a recent NBER working
paper in labor economics available at http://www.nber.org/papersbyprog/LS.html. The referee
report is due by October 28. A brief research proposal for the research paper should be turned in
by November 8. Students are expected to meet with or email Prof. Katz to discuss paper topics
before that date. The term paper is due on December 11. The final exam will take place in exam
period at a mutually agreed upon time and date during December 16-19.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

ECONOMICS 2810a: Expected Lecture Schedule for Fall 2013

I. Human Capital and Schooling
Sep 4 Lecture 1: Course Introduction; Human Capital Investment
Sep 9 Lecture 2: Human Capital Schooling Models; Estimating Returns to Schooling I
Sep 11 Lecture 3: Estimating the Returns to Schooling II and Extensions
Sep 16 Lecture 4: Signaling and Learning Models of Education and Earnings
Sep 18 Lecture 5: The Education Production Function and Returns to School Quality
Sep 22 Lecture 6: Program Evaluation I: Basics; Training and Housing Mobility Programs
Sep 25 Lecture 7: Program Evaluation II: School Policies
II. Self-Selection and Earnings: Equalizing Differences vs. Segmented Labor Markets
Sep 30 Lecture 8: Self-Selection and Earnings: The Roy Model and Immigration
Oct 2 Lecture 9: Theory of Equalizing Differences and Applications
Oct 7 -- Lecture 10: Spatial Equilibrium Models and Applications
Oct 9 Lecture 11: Segmented Labor Markets: Firm and Industry Wage Differentials
Oct 14 No Class Columbus Day
III. Jobs, Matching, Turnover, Personnel Economics, and Management Practices
Oct 16 Lecture 12: Job Matching, Turnover, Life-Cycle Wage Growth, Costs of Job Loss
Oct 21 Lecture 13: Agency, Incentives, and Wage Determination
Oct 23 Lecture 14: Human Resource Policies and Management Practices
IV. Labor Demand and Unions
Oct 28 Lecture 15: Labor Demand Models; Union Wage & Employment Determination
Oct 30 Lecture 16: Labor Demand Applications: Minimum Wage, Monopsony
V. Changes in the Wage Structure and Wage Inequality
Nov 4 Lecture 17: Understanding and Decomposing Changes in the Wage Structure
Nov 6 Lecture 18: Supply-Demand Models of Changes in the Wage Structure
Nov 11 Lecture 19: Immigration, Labor Market Institutions, and the Wage Structure
VI. Technical Change, Organizational Change, and Skill Demands (David Autor)
Nov 13 Lecture 20: Technical Change, Organizational Change, and Skill Demands I
Nov 18 Lecture 21: Technical Change, Organizational Change, and Skill Demands II
Nov 20 Lecture 22: The Economics of Superstars
VII. Trade, Offshoring and Labor Markets (David Autor)
Nov 25 Lecture 23: The Canonical Hecksher-Ohlin Model -- Theory and Evidence
Nov 27 No Lecture - Thanksgiving Break
Dec 2 Lecture 24: Trade and Offshoring Ricardian Models
Dec 4 Lecture 25: Trade and Offshoring -- Evidence

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

Background Reading
*

A. Smith. (1776) The Wealth of Nations, Chapter 10 of Book I.

G. Becker. (1975) The Economic Approach to Human Behavior, U. of Chicago Press, pp. 3-14.
D. Kahneman, J.L. Knetsch and R.H. Thaler. (1986) "Fairness as a Constraint on Profit Seeking:
Entitlements in the Market," American Economic Review, 76 (September), 728-41.
J.D. Angrist and A.B. Krueger. (1999) Empirical strategies in labor economics, in the
Handbook of Labor Economics, Vol. 3A, O. Ashenfelter and D. Card, eds., Elsevier, 1278-1366.
J.D. Angrist and J.S. Pischke. (2009) Mostly Harmless Econometrics, Princeton University Press.

I. Human Capital
I.a. Human Capital Investment: Theory and Basic Facts (Lectures 1 and 2)
*

R. Willis. (1986) "Wage Determinants: A Survey and Reinterpretation of Human Capital

Earnings Functions," Handbook of Labor Economics, Vol. 1, Elsevier, 1986, pp. 525-602.

J. Mincer. (1974) Schooling, Experience, and Earnings. New York: Columbia University Press
for the National Bureau of Economic Research, pp. 7-22.

K. Lang. (1993) "Ability Bias, Discount Rate Bias and the Return to Education," Boston
University mimeo.

T. Lemieux. (2006) "The Mincer Equation Thirty Years After Schooling, Experience and
Earnings," http://www.econ.ubc.ca/lemieux/papers/mincer.pdf

F. Cunha and J. Heckman. (2007). "The Technology of Skill Formation," American Economic
Review 97 (May), 31-47.
G. Becker. (1993) Human Capital, 3rd ed. Chicago: University of Chicago Press, pp. 1-66.
S. Rosen. (1977) "Human Capital: A Survey of Empirical Research," Research in Labor
Economics, Vol. 1, pp. 3-40.
S. Bowles, H. Gintis, and M. Osborne. (2001) "The Determinants of Individual Earnings: A
Behavioral Approach," Journal of Economic Literature 39 (December), 1136-76.
Y. Ben-Porath. (1967) "The Production of Human Capital and the Life Cycle of Earnings,"
Journal of Political Economy, 75 (August), 352-65.
J. Heckman. (1976) "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of
Political Economy, 84 (August), s11-s44.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

S. Jayachandran and A. Lleras-Muney. (2009) Life Expectancy and Human Capital Investment:
Evidence from Maternal Mortality Declines, QJE 124 (February), 349-98.
R. Jensen. (2010) The (Perceived) Returns to Education and the Demand for Schooling, QJE
125 (May), 515-48.
E. Oster and B. Millett. (2013) Do Call Centers Promote School Enrollment? Evidence from
India, http://faculty.chicagobooth.edu/emily.oster/papers/indiaites.pdf.

L. Bursztyn and L. Coffman. (2012) The Schooling Decision: Family Preferences,

Intergenerational Conflict, and Moral Hazard in the Brazilian Favelas, JPE 120(3), 359-97.
E. Bettinger et al. (2012) The Role of Application Assistance and Information in
College Enrollment Decisions: Results from the H&R Block FAFSA Experiment, QJE
127 (August), 1205-42.
S. Dynarksi. (2003) "Does Aid Matter? Measuring the Effect of Student Aid on College
Attendance and Completion." American Economic Review 93 (March), 279-88.
K. Murphy and F. Welch. (1990) "Empirical Age-Earnings Profiles," JOLE 8 (April), 202-229.
J. Heckman, L. Lochner, and P. Todd. (2008) "Earnings Functions and Rates of Return," NBER
WP No. 13780, February.
K. Stange. (2012) An Empirical Examination of the Option Value of College Enrollment, AEJ:
Applied Economics 4 (January), 49-84.
J. Heckman and T. Kautz. (2012) Hard Evidence on Soft Skills, NBER WP No. 18121, June.
L. Lochner and A. Monge-Naranjo. (2011) The Nature of Credit Constraints and Human
Capital, AER 101 (December), 2487-2529.
D. Acemoglu and J. Pischke. (1998) Why Do Firms Train? Theory and Evidence. Quarterly
Journal of Economics, 113 (February), 79-119.
D. Acemoglu and J.S. Pischke. (1999) Beyond Becker: Training in Imperfect Labor Markets,
Economic Journal, 109.453 (February), 112-42.
I.b. Estimating the Rate of Return to Schooling on Earnings and Other Outcomes (Lectures 2 and 3)
*

D. Card. (1999) The Causal Effect of Education on Earnings, in the Handbook of Labor
Economics, Vol. 3A, O. Ashenfelter and D. Card, eds. Amsterdam: Elsevier Science

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

J. Angrist and A. Krueger. (1991) "Does Compulsory School Attendance Affect Schooling and
Earnings?" Quarterly Journal of Economics, 106 (November), 979-1015.

Z. Griliches. (1979) "Sibling Models and Data in Economics: Beginnings of a Survey" Journal
of Political Economy (supplement), s37-s64.

O. Ashenfelter and C. Rouse. (1998) "Income, Schooling and Ability: Evidence from a New
Sample of Identical Twins, " Quarterly Journal of Economics 113 (February), 253-84.

T. Kane, C. Rouse, and D. Staiger. (1999) Estimating Returns to Schooling When Schooling is
Misreported. NBER WP No. 7235 (July).

S. Zimmerman. (2013) The Returns to College Admission for Academically Marginal Students,
Yale, May; forthcoming in Journal of Labor Economics.

P. Oreopoulos and K. Salvanes. (2011) Priceless: The Nonpecuniary Benefits of Schooling,

Journal of Economic Perspectives 25(1), 159-84.

L. Lochner and E. Moretti (2004) The Effects of Education on Criminal Activity: Evidence from
Prison Inmates, Arrests, and Self-Reports, AER 94 (March), 155-89.
D. Card. (2001) Estimating the Return to Schooling: Progress on Some Persistent Econometric
Problems, Econometrica 69 (September), 1129-60.
P. Carneiro and J. Heckman. (2002) The Evidence on Credit Constraints in Post-Secondary
Schooling," Economic Journal, 112 (October), 989-1018.
O. Ashenfelter, C. Harmon and H. Oosterbeek. (1999) "A Review of Estimates of the
Schooling/Earnings Relationship, with Tests for Publication Bias," Labour Economics, 6, 453-70.
A. Leigh and C. Ryan. (2008) Estimating Returns to Education Using Different Natural
Experiment Techniques, Economics of Education Review 27, 149-60.
J. Bound, D. Jaeger, and R. Baker. (1995) "Problems with Instrumental Variables Estimation
When the Correlation between the Instruments and the Endogenous Explanatory Variable Is
Weak," Journal of the American Statistical Association, 90.430 (June), 443-50
K. Buckles and D. Hungerman. (2010) Season of Birth and Later Outcomes: Old Questions,
New Answers, August; http://nd.edu/~dhungerm/w14573.pdf
C. Dobkin and F. Ferreira. (2010) Do School Entry Laws Affect Educational Attainment and
Labor Market Outcomes?. Economics of Education Review, 29(1), 40-54.
E. Duflo (2001). "Schooling and Labor Market Consequences of School Construction in
Indonesia: Evidence from an Unusual Policy Experiment," AER 91 (December), 795-813.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

P. Oreopoulos. (2006) Estimating Average and Local Treatment Effects of Education When
Compulsory Schooling Laws Really Matter, AER 96 (March), 152-75.
J. Currie and E. Moretti. (2003) Mothers Education and the Intergenerational Transmission of
Human Capital: Evidence from College Openings, QJE 118 (November), 1495-1532.
A. Lleras-Muney. (2005) "The Relationship between Education and Adult Mortality in the United
States," Review of Economic Studies 72 (January).
D. Clark and H. Royer. (2012) The Effect of Education on Adult Health and Mortality: Evidence
from Britain, AER, forthcoming; also NBER WP No.16013, May 2010.
I.c. Signaling, Screening, and Learning Models of Education and Earnings (Lecture 4)
*

A.M. Spence. (1973) "Job Market Signaling," Quarterly Journal of Economics 87 (Aug), 355-74.

J. Tyler, R. Murnane, and J. Willett. (2000) Estimating the Impact of the GED on the Earnings
of Young Dropouts Using a Series of Natural Experiments, QJE, 115 (May), 431-69.

K. Bedard. (2001) "Human Capital Versus Signaling Models: University Access and High School
Dropouts," Journal of Political Economy, 109 (August), 749-775.

J. Altonji and C. Pierret. (2001), "Employer Learning and Statistical Discrimination," Quarterly
Journal of Economics 116 (February), 313-50.
H.S. Farber and R. Gibbons. (1996) "Learning and Wage Dynamics," Quarterly Journal of
Economics, 111.4 (November), 1007-47.
F. Lange. (2007) "The Speed of Employer Learning," Journal of Labor Economics, 25 (Jan.).
J. Stiglitz. (1975) "The Theory of Screening, Education, and the Distribution of Income,"
American Economic Review, 65 (June), 283-300.
K. Lang and D. Kropp. (1986) Human Capital vs. Sorting: The Effects of Compulsory Schooling
Laws, Quarterly Journal of Economics, 101 (August), 609-24.
P. Arcidiacano, P. Bayer, and A. Hizmo. (2010) Beyond Signaling and Human Capital:
Education and the Revelation of Ability, AEJ: Applied Economics 2(4), 76-104.
P. Martorell and D. Clark. (2010) The Signaling Value of a High School Diploma, August;

http://www.rand.org/pubs/working_papers/2010/RAND_WR780.pdf
D. Autor and D. Scarborough. (2008) Does Job Testing Harm Minority Workers? Evidence from
Retail Establishments, QJE 123 (February), 219-77.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

I.d. Estimating the Labor Market Returns to School Quality and School Inputs (Lecture 5)
*

D. Card and A. Krueger. (1992) "Does School Quality Matter? Returns to Education and
Characteristics of Public Schools in the United States" JPE, 100 (February), 1-40.

J. Heckman, A. Layne-Farrar, and P. Todd. (1996) "Human Capital Pricing Equations with an
Application to Estimating the Returns to School Quality" RESTAT 78 (Nov), 562-610.

R. Chetty, J. Friedman, N. Hilger, E. Saez, D. Schanzenbach, and D. Yagan. (2011) How Does
Your Kindergarten Classroom Affect Your Earnings? Evidence from Project STAR Quarterly
Journal of Economics 126 (November), 1593-1660.
E. Lazear. (2001) Education Production, Quarterly Journal of Economics 116 (Aug.), 777-803.
E. Hanushek. (2006) School Resources, in E. Hanushek and F. Welch, eds., Handbook of the
Economics of Education; http://edpro.stanford.edu/hanushek/files_det.asp?FileId=189
D. Card and A. Krueger. (1992) School Quality and Black-White Relative Earnings: A Direct
Assessment, QJE 107 (February), 151-200.
D. Card and A. Krueger. (1996) Labor Market Effects of School Quality: Theory and Evidence,
NBER WP 5450, February.
E. Hanushek, S. Rivkin, and L. Taylor. (1996) Aggregation and the Estimated Returns to School
Resources, RESTAT 78 (Nov), 611-627.
E. Hanushek and L. Woessman. (2008) The Role of Cognitive Skills in Economic
Development, Journal of Economic Literature 46 (September), 607-68.
J. Altonji, E. Blom, and C. Meghir. (2012) Heterogeneity in Human Capital: High School
Curriculum, College Majors and Careers, NBER WP No. 17985, April.
S. Dale and A. Krueger. (2002) "Estimating the Payoff to Attending a More Selective College:
An Application of Selection on Observables and Unobservables," QJ E 117 (Nov), 1491-1527.
J. Bound and S. Turner. (2007) Cohort Crowding: How Resources Affect Collegiate
Attainment, Journal of Public Economics (June), 877-899.
M. Hoekstra (2009), The Effect of Attending a Flagship State University on Earnings: A
Discontinuity Based Approach, RESTAT (November), 717-724.
C. Hoxby and S. Turner (2013), Expanding College Opportunities for High-Achieving, LowIncome Students, SIEPR (March); http://siepr.stanford.edu/publicationsprofile/2555

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

I.e. The Program Evaluation Problem, Training, and Mobility Programs (Lecture 6)
*

J.D. Angrist, G.W. Imbens, and D.B. Rubin. (1996) Identification of Causal Effects Using
Instrumental Variables, Journal of the American Statistical Association, 91.434 (June), 444-55.

G. Imbens and T. Lemieux. (2008) Regression Discontinuity Designs: A Guide to Practice,"

Journal of Econometrics142 (February), 615-35.

J. Kling, J. Liebman, and L. Katz. (2007) Experimental Analyses of Neighborhood Effects,

Econometrica 75 (January), 81-119.

R. LaLonde. (1986) "Evaluating the Econometric Evaluations of Training Programs with

Experimental Data," American Economic Review 76 (September), 604-620.

R. Dehejia and S. Wahba. (1999) Causal Effects in Non-Experimental Studies: Re-Evaluating

the Evaluation of Training Programs, JASA, 94.448 (December), 1053-1062.

B. Crpon, E. Duflo, M. Gurgand, R. Rathelot, P. Zamora. (2013) Do Labor Market Policies

Have Displacement Effects? Evidence from a Clustered Randomized Design, QJE 128 (May).
J. Angrist and J. Pischke. (2009) Mostly Harmless Econometrics, especially chs. 2, 4, 5, and 6.
G. Imbens and J. Wooldridge. (2009) Recent Developments in the Econometrics of Program
Evaluation, Journal of Economic Literature 47 (March), 5-86.
J. Ludwig, J. Kling, and S. Mullainathan. (2011) Mechanism Experiments and Policy
Evaluations, Journal of Economic Perspectives 25 (Summer), 17-38.
H. Allcott and S. Mullainathan. (2012) External Validity and Partner Selection Bias, NBER
WP No. 18373, September.
R. Chetty. (2009) Sufficient Statistics for Welfare Analysis: A Bridge between Structural and
Reduced Form Models, http://obs.rc.fas.harvard.edu/chetty/files/suffstat_ar.pdf
O. Ashenfelter and D. Card. (1985) "Using the Longitudinal Structure of Earnings to Estimate the
Effect of Training Programs on Earnings," RESTAT, 67 (November), 648-60.
D. Card and D. Sullivan. (1988) "Estimating the Effect of Subsidized Training on Movements In
and Out of Employment," Econometrica, 56.3 (May), 497-530.
J. Heckman and V.J. Hotz. (1989) "Choosing Among Alternative Nonexperimental Methods for
Estimating the Impact of Social Programs: The Case of Manpower Training," Journal of the
American Statistical Association, 84.408 (December), 862-74.
D. Card, J. Kluve, and A. Weber. (2010) Active Labour Market Policies: A Meta-Analysis,
Economic Journal 120, F42-F57.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

M. Bitler, J. Gelbach, H. Hoynes. (2006). "What Means Miss: Distributional Effects of Welfare
Reform Experiments," American Economic Review 96 (September), 988-1012.
J. Ludwig et al. (2011) Neighborhoods, Obesity, and Diabetes A Randomized Social
Experiment, New England Journal of Medicine 365 (October 20), pp. 1509-19.
J. Ludwig et al. (2012) Neighborhood Effects on the Long-Term Well-Being of Low-Income
Adults, Science 337 (Sept 21), 1505-10.
C. Manski. (2002) Economic Analysis of Social Interactions, JEP 14(3), 115-36.
E. Duflo and E. Saez. (2003) The Role of Information and Social Interactions in Retirement Plan
Decisions: Evidence from a Randomized Experiment, Quarterly Journal of Economics 118
(August), 815.-42.
I.f. Program Evaluation: Evaluating the Impacts of School Policies on Student Outcomes (Lecture 7)
*

J.D. Angrist and V. Lavy. (1999) Using Maimonides' Rule to Estimate the Effect of Class Size
on Scholastic Achievement, Quarterly Journal of Economics, 114 (May), 533-575.

A. B. Krueger. (1999) Experimental Estimates of Education Production Functions, Quarterly

Journal of Economics, 114 (May), 497-532.

P. Fredriksson, B. ckert, and H. Oosterbeek. (2013) Long-Term Effects of Class Size, QJE
128 (February), 249-85.

R. Chetty, J. Friedman, and J. Rockoff. (2013) Measuring the Impacts of Teachers II: Teacher
Value-Added and Student Outcomes as Adults, August.

J. Ludwig and D. Miller. (2007) "Does Head Start Improve Childrens Life Chances? Evidence
from a Regression Discontinuity Design," Quarterly Journal of Economics 122 (Feb), 159-208.

J. Altonji, T. Elder, and C. Taber. (2005) "Selection on Observed and Unobserved Variables:
Assessing the Effectiveness of Catholic Schools," Journal of Political Economy 113 (February).
P. Todd and K. Wolpin. (2006) "Assessing the Impact of a School Subsidy Program in Mexico:
Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and
Fertility." American Economic Review, 96(5), 13841417.
P. Todd and K. Wolpin. (2003) "On the Specification and Estimation of the Production Function
for Cognitive Achievement," Economic Journal (February), F3-F33.
J. Rothstein. (2010) Teacher Quality in Education Production: Tracking, Decay and
Achievement, Quarterly Journal of Economics 125 (February), 175-214.

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

R. Chetty, J. Friedman, and J. Rockoff. (2013) Measuring the Impacts of Teachers I: Evaluating
Bias in Teacher Value Added Estimates, August.
T. Kane and D. Staiger. (2008) Estimating Teacher Impacts on Student Achievement: An
Experimental Evaluation, Harvard GSE, July.
T. Kane et al. (2013) Have We Identified Effective Teachers? Gates Foundation, January;

http://www.metproject.org/downloads/MET_Validating_Using_Random_Assignment_R
esearch_Paper.pdf
M. Urquiola and E. Verhoogen. (2009) Class-Size Caps, Sorting, and the RegressionDiscontinuity Design, American Economic Review 99 (March), 179-215.
S. Cellini, F. Ferreira, and J. Rothstein. (2010) The Value of School Facility Investments:
Evidence from a Dynamic Regression Discontinuity Design, QJE 125 (Feb), 215-61.
D. Deming, J. Hastings, T. Kane, and D. Staiger. (2012) School Choice, School Quality, and
Academic Achievement, HGSE; https://sites.google.com/site/demingdavid/.
J. Hastings and J. Weinstein. (2008) Information, School Choice and Academic Achievement:
Evidence from Two Experiments, QJE, 123 (November), 1373-1414.
A. Abdulkadirolu, J. Angrist, S. Dynarski, T. Kane, and P. Pathak. (2011) Accountability and
Flexibility in Public Schools: Evidence from Boston's Charters and Pilots, QJE 126(2), 699-748.
J. Angrist, P. Pathak, and C. Walters. (2011), Explaining Charter School Effectiveness, NBER
WP No. 17332, August.
R. Fryer (2012) Injecting Successful Charter School Strategies into Traditional Public Schools:
Early Experimental Evidence from Houston, Harvard, January.
H. Chiang. (2009) How Accountability Pressure on Failing Schools Affects Student
Achievement, Journal of Public Economics 93 (October), 1045-57.
T. Dee and B. Jacob. (2011) The Impact of No Child Left Behind on Student Achievement,
Journal of Policy Analysis and Management 30(3), 418-46.

S. Carrell, B. Sacerdote, and J. West. (2013) From Natural Variation to Optimal Policy?
The Importance of Endogenous Peer Group Formation, Econometrica 81 (May).
E. Duflo, P. Dupas, and M. Kremer. (2011) Peer Effects and the Impact of Tracking: Evidence
from a Randomized Evaluation in Kenya, AER 101(5), 1739-74.
K. Mulralidharan and V. Sundararaman. (2011) Teacher Performance Pay: Evidence from
India, Journal of Political Economy 119 (February), 39-78.

10

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

S. Black. (1999) Do Better Schools Matter? Parental Evaluation of Elementary Education,

Quarterly Journal of Economics 114 (May), 577-600.
R. Fryer and L. Katz. (2013) Achieving Escape Velocity: Neighborhood and School
Interventions to Reduce Persistent Poverty, AER 103 (May), 232-37.
J. Heckman, S. Moon, R. Pinto, P. Savelyev, and A. Yavitz. (2010) Analyzing Social
Experiments as Implemented: A Reexamination of the Evidence from the HighScope Perry
Preschool Program, Quantitative Economics 1(1), 1-46.
E. Oster. (2013) Unobservable Selection and Coefficient Stability: Theory and Evidence,
NBER WP No. 19054, May.
II. Self-Selection and Equalizing Differences
II.a. The Roy Model, Self-Selection, and Immigration: Theory and Evidence (Lecture 8)
*

A. Roy. (1951) "Some Thoughts on the Distribution of Earnings" Oxford Ec Papers, 235-246.

G. Borjas. (1987) "Self-Selection and the Earnings of Immigrants," AER 77 (September), 531-53.

R. Abramitzky, L. Boustan, and K. Eriksson. (2012) Europes Tired, Poor, Huddled Masses:
Self-Selection and Economic Outcomes in the Age of Mass Migration, AER 102(5), 1832-56.

H. Bleakley and A. Chin. (2004) Language Skills and Earnings: Evidence from Childhood
Immigrants, RESTAT 86 (May), 481-96.
D. Chiquiar and G. Hanson. (2005) "International Migration, Self-Selection and the Distribution
of Wages," Journal of Political Economy 113 (April), 239-81.
J. Grogger and G. Hanson. (2011) Income Maximization and the Selection and Sorting of
Immigrants, Journal of Development Economics 95(1), 42-57.
D. McKenzie, J. Gibson, and S. Stillman. (2010) How Important is Selection? Experimental vs.
Nonexperimental Measures of the Income Gain from Migration, JEEA 8(4), 913-45.
M. Clemens. (2013) Why Do Programmers Earn More in Houston than Hyderabad?
Evidence from Randomized Processing of US Visas, AER 103 (May), 198-202.
R. Abramitzky. (2009) The Effect of Redistribution on Migration: Evidence from the Israeli
Kibbutz, Journal of Public Economics 93, 498-511.
G. Borjas. (1999) The Economic Analysis of Immigration, Handbook of Labor Economics, vol.
3A, 1697-1760, especially sections 3 and 4.

11

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

R. Abramitzky, L. Boustan, and K. Eriksson. (2013) A Nation of Immigrants:

Assimilation and Economic Outcomes in the Age of Mass Migration, Stanford, August;

http://www.stanford.edu/~ranabr/ABE_assimilation.pdf
D. Lubotsky. (2007) Chutes or Ladders? A Longitudinal Analysis of Immigrant
Earnings, JPE 115, 820-67.
B. Chiswick. (1978) The Effects of Americanization on the Earnings of Foreign-Born Men,
Journal of Political Economy 86(October), 897-921.
P. Oreopoulos. (2011) Why Do Skilled Immigrants Struggle in the Labor Market? A Field
Experiment with Six Thousand Resumes, AEJ: Economic Policy 3(4), 148-71.
G. Borjas and R. Friedberg. (2009) Recent Trends in the Earnings of New Immigrants to the
United States, NBER WP No. 15406, October.
G. Borjas. (2013) The Slowdown in the Economic Assimilation of Immigrants: Aging and
Cohort Effects Revisited Again, NBER WP No. 19116, June.
R. Willis and S. Rosen. (1979) "Education and Self-Selection," JPE, 87, S7-S36.
J. Heckman and B. Honore. (1990) "The Empirical Content of the Roy Model," Econometrica,
58.5 (September), 1121-49.
G. Borjas. (2002) "The Wage Structure and the Sorting of Workers into the Public Sector NBER
WP No. 9313, October.
A. Chandra and D. Staiger. (2007) Productivity Spillovers in Healthcare: Evidence from the
Treatment of Heart Attacks, Journal of Political Economy 115: 103-140.
M. Bacolod. (2007) Do Alternative Opportunities Matter? The Role of Female Labor Markets In
The Decline Of Teacher Quality, Review of Economics and Statistics 89(4), 737-751.
II.b. Equalizing Wage Differentials Theory, Econometrics, and Evidence (Lecture 9)
*

S. Rosen. (1986) "The Theory of Equalizing Differences" Handbook of Labor Economics, Vol.
1, O. Ashenfelter and R. Layard, eds. Amsterdam: Elsevier Science, 641-92.

C. Brown. (1980) "Equalizing Differences in the Labor Market," Quarterly Journal of

Economics, 94 (February), 113-34.

S. Stern. (2004) "Do Scientists Pay to Do Science?" Management Science 50 (June), 835-53.

L. Summers. (1989) "Some Simple Economics of Mandated Benefits," AER 79 (May), 177-83.

12

Economics 2810a
Fall 2013 Semester
*

Department of Economics
Harvard University

J. Gruber. (1994) "The Incidence of Mandated Maternity Benefits," American Economic Review,
84 (June), 622-41.
S. Rosen. (1974) "Hedonic Prices and Implicit Markets: Product Differentiation in Pure
Competition" Journal of Political Economy, 82 (January-February), 34-55.
P. Bajari and C.L. Benkard. (2005) Demand Estimation with Heterogeneous Consumers and
Unobserved Product Characteristics: A Hedonic Approach, JPE 113 (Dec), 1239-76.
B. Moulton. (1986) "Random Group Effects and the Precision of Regression Estimates," Journal
of Econometrics, 32 (August), 385-87.
M. Bertrand, E. Duflo, and S. Mullainathan. (2004) How Much Should We Trust Differencesin-Differences Estimates? Quarterly Journal of Economics, 119 (Feb), 249-75.
A. Krueger and D. Schkade. (2008) Sorting in the Labor Market: Do Gregarious Workers Flock
to Interactive Jobs? Journal of Human Resources 43 (Fall), 859-83.
C. Goldin and L. Katz. (2011) The Cost of Workplace Flexibility for High-Powered
Professionals, Annals, AAPS 638 (November), 45-67.
J. Kolstad and A. Kowalski. (2013) Mandate-Based Health Reform and the Labor Market:
Evidence from the Massachusetts Reform, Yale, February;

http://www.econ.yale.edu/~ak669/malabor_2_19_13.pdf.
G. Duncan and B. Holmlund. (1983) "Was Adam Smith Right After All? Another Test of the
Theory of Compensating Differentials" Journal of Labor Economics, 1 (October), 366-79.
J. Bound and A. Krueger. (1991) "The Extent of Measurement Error in Longitudinal Earnings
Data: Do Two Wrongs Make a Right?" Journal of Labor Economics, 9 (January), 1-24
J. Gruber and A. Krueger (1991) "The Incidence of Mandated Employer-Provided Insurance:
Lessons from Workers' Compensation Insurance" in Tax Policy and the Economy. Cambridge:
MIT Press for the NBER, 111-43. (also NBER Working Paper No. 3557, December 1990)
P. Fishback and S. Kantor. (1995) "Did Workers Pay for the Passage of Workers' Compensation
Laws?" Quarterly Journal of Economics, 110 (August), 713-42.
C. K. Jackson. (2009) "Student Demographics, Teacher Sorting, and Teacher Quality: Evidence
From the End of School Desegregation" Journal of Labor Economics 27(2), 213-256.
II.c. Spatial Equilibrium: Models and Applications (Lecture 11)
*

J. Roback. (1982) "Wages, Rent and the Quality of Life," JPE, 90 (December), 1257-78.

13

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

O. Blanchard and L. Katz. (1992) Regional Evolutions, BPEA, no. 1, 1-75.

E. Moretti. (2004) "Estimating the Social Return to Higher Education: Evidence from
Longitudinal and Repeated Cross-Section Data," Journal of Econometrics 121 (1-2), 175-212.

P. Kline and E. Moretti. (2013) Local Economic Development, Agglomeration Economies, and
the Big Push: 100 Years of Evidence from the Tennessee Valley Authority, NBER WP 19293.
E. Moretti. (2013) Real Wage Inequality, AEJ: Applied Economics 5(1), 65-103.
R. Diamond. (2012) The Determinants and Welfare Implications of US Workers.
Diverging Location Choices by Skill: 1980-2000, December;

http://www.stanford.edu/~diamondr/rdiamond_jmp_121412.pdf.
D. Black, N. Kolesnikova, and L. Taylor. (2009) Earning Functions when Wages and Prices
Vary by Location, Journal of Labor Economics 27 (January), 21-47.
G. Dahl. (2001) Mobility and Returns to Education: Testing a Roy Model with Multiple
Markets, Econometrica 70 (December), 2367-2420.
E. Glaeser and J. Gottlieb. (2008) The Economics of Place-Making Policies, BPEA, no. 1.
M. Busso, J. Gregory, and P. Kline. (2013) Assessing the Incidence and Efficiency of a
Prominent Place-Based Policy, AER 103(2), 897-947.
P. Beaudry, D. Green, and B. Sand. (2013) Spatial Equilibrium with Unemployment and Wage
Bargaining: Theory and Estimation, NBER WP No. 19118, June.
E. Moretti. (2010), Local Labor Markets, Handbook of Labor Economics, vol. 4B, 1237-1313.
R. Topel. (1986). Local Labor Markets, Journal of Political Economy 94, no. S3.
M. Notowididgo. (2011) The Incidence of Local Labor Demand Shocks, U. of Chicago, June;
http://faculty.chicagobooth.edu/matthew.notowidigdo/research/notowidigdo_JMP_20110614.pdf
M. Greenstone, R. Hornbeck, and E. Moretti. (2010) Identifying Agglomeration Spillovers:
Evidence from Million Dollar Plants, JPE 118 (June), 536-98.
E. Moretti. (2010) Local Multipliers, AER 100(2), 373-77.
P. Ganong and D. Shoag. (2013) Why Has Regional Convergence Stopped? Harvard, March;

http://www.hks.harvard.edu/fs/dshoag/Documents/Ganong_Shoag.pdf.
J. Decressin and A. Fatas. (1995) Regional Labor Market Dynamics in Europe, European
Economic Review 39 (December), 1627-55.

14

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

R. Saks. (2008) Job Creation and Housing Construction: Constraints on Metropolitan

Employment Growth, Journal of Urban Economics 64, 178-95.
A. Saiz. (2010) The Geographic Determinants of Housing Supply, QJE 125(3), 1253-96.
R. Malloy, C. Smith, and A. Wozniak. (2011) Internal Migration in the United States, Journal
of Economic Perspectives 25(Summer), 173-96.
J. Hellerstein, M. Kutzbach, and D. Neumark. (2013) Do Labor Market Networks Have an
Important Spatial Dimension? NBER WP No. 18763, February.
II.d. Segmented Labor Markets? Industry and Establishment Wage Differentials (Lecture 11)
*

J. Yellen. (1984) "Efficiency Wage Models of Unemployment," AER, May.

A. Manning. (2003) "The Real Thin Theory: Monopsony in Modern Labour Markets," Labour
Economics 10, 105-31

A. Krueger and L.H. Summers. (1988) "Efficiency Wages and the Inter-Industry Wage
Structure," Econometrica 56 (March), 259-93.

R. Gibbons and L. Katz. (1992) "Does Unmeasured Ability Explain Inter-Industry Wage
Differentials?" Review of Economic Studies, 59 (July), 515-35.

J. Abowd, F. Kramarz, and D. Margolis. (1999) "High Wage Workers and High Wage Firms,"
Econometrica 67 (March).

H. Holzer, L Katz, and A. Krueger. (1991) "Job Queues and Wages," QJE 106 (August), 739-68.

J. Budd and M. Slaughter. (2004) "Are Profits Shared Across Borders?" Journal of Labor
Economics 22 (July), 525-52.
P. Beaudry, D. Green, and B. Sand. (2012) Does Industrial Composition Matter for Wages? A
Test of Search and Bargaining Theory, Econometrica 80 (May), 1063-1104.
A. Manning. (2010) Imperfect Competition in Labor Markets, H. Labor Econ, 4B, 973-1041.
K. Burdett and D. Mortensen. (1998) "Wage Differentials, Employer Size and Unemployment,"
International Economic Review 39 (May), 257-73.
R. Lentz and D. Mortensen. (2010) Labor Market Models of Worker and Firm Heterogeneity,
Annual Review of Economics 2, 577-602.
G. Becker and G. Stigler. (1974) "Law Enforcement, Malfeasance, and the Compensation of
Enforcers," Journal of Legal Studies, 3, 1-18.

15

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

C. Shapiro and J. Stiglitz. (1984) "Equilibrium Unemployment as a Worker Discipline Device,"

American Economic Review 74, 433-444.
Lang, K. and W. Dickens. (1988) "Neoclassical and Sociological Perspectives on Segmented
Labor Markets, in P. England and G. Farkas, eds., Industries, Firms, and Workers: Sociological
and Economic Approaches (New York: Plenum Press), pp. 68-88.
S. Slichter. (1950) "Notes on the Structure of Wages," RESTAT, 32, 80-91.
L. Reynolds. (1951) The Structure of Labor Markets, 1951.
P. Doeringer and M. Piore. (1971) Internal Labor Markets and Manpower Analysis, Lexington,
MA: D.C. Heath, especially chapters 1, 2, and 8.
A. Krueger. (1991) "Ownership, Agency, and Wages: An Empirical Analysis," QJE (Feb).
M. Bertrand and S. Mullainathan. (2003) "Enjoying the Quiet Life? Corporate Governance and
Managerial Preferences," Journal of Political Economy 111 (October), 1043-75.
L. Katz and L. Summers. (1989) "Industry Rents: Evidence and Implications," Brookings Papers
in Economic Activity: Microeconomics, 209-75.
R. Gibbons, L. Katz, T. Lemieux, and D. Parent. (2005) "Comparative Advantage, Learning and
Sectoral Wage Determination," Journal of Labor Economics 23 (October), 681-723.
C. Brown and J. Medoff. (1989) "The Employer Size Wage Effect," JPE, October.
B. Hirsch and E. Schumacher. (2004) "Match Bias in Wage Gap Estimates Due to Earnings
Imputation," Journal of Labor Economics 22 (July), 689-722.
M. Gruetter and R. LaLive. (2009) The Importance of Firms in Wage Setting, Labour
Economics 16(2), 149-60.
S. Black and P. Strahan. (2001) "The Division of the Spoils: Rent-Sharing and Discrimination in
a Regulated Industry," American Economic Review 91 (September), 914-31.
J. Van Reenen. (1996) The Creation and Capture of Rents: Wages and Innovation in a Panel of
UK Companies, Quarterly Journal of Economics 111 (February), 195-226.
D. Card, A. Cardoso, and P. Kline. (2013) Bargaining and the Gender Wage Gap: A Direct
Assessment, http://emlab.berkeley.edu/~pkline/papers/CCK-aug22.pdf.

16

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

III. Jobs, Matching, Turnover, Personnel Economics, and Management Practices

III.a. Job Matching, Turnover, Life Cycle Wage Growth, Costs of Job Loss (Lecture 12)
*

B. Jovanovic. (1979) "Job Matching and the Theory of Turnover" JPE 87 (October), 972-990.

C. Flinn. (1986) "Wages and Mobility of Young Workers," JPE 94 (June), S88-S110.

R. Topel and M. Ward. (1992) "Job Mobility and the Careers of Young Men," Quarterly Journal
of Economics, 107 (May), 439-480.

R. Topel. (1991) "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority,"
Journal of Political Economy, 99(February), 145-167.

L. Jacobson, R. LaLonde, and D. Sullivan. (1993) Earnings Losses of Displaced Workers, AER
83(4), 685-709.
H. Farber. (1999) Mobility and stability: the dynamics of job change in labor markets, in the
Handbook of Labor Economics, Vol. 3B, O. Ashenfelter and D. Card, eds. Amsterdam: Elsevier.
B. Jovanovic. (1979) "Firm-Specific Capital and Turnover" JPE 87 (December), 1246-60.
B. McCall. (1990) "Occupational Matching: A Test of Sorts" JPE, 98.1 (February), 45-69.
H. Farber. (2007) Is the Company Man an Anachronism? Trends in Long-Term Employment in
the U.S., 1973-2006, Princeton IRS WP 518; http://www.irs.princeton.edu/pubs/pdfs/518.pdf
Y. Rubinstein and Y. Weiss (2006). Post Schooling Wage Growth: Investment, Search, and
Learning, in E. Hanushek and F. Welch, eds., Handbook of the Economics of Education, vol. 1.
K. Abraham and H. Farber. (1986). Job Duration, Seniority, and Earnings, AER 77(3), 278-297.
J. Altonji and N. Williams. (2005) "Do Wages Rise with Job Seniority? A Reassessment,"
Industrial and Labor Relations Review 58 (April), 370-397.
J. Altonji, A. Smith, and I. Vidangos. (2013) Modeling Earnings Dynamics, Econometrica
81(July), 1395-1454.
J. Lise, C. Meghir, and J. Robin. (2013) Mismatch, Sorting, and Wage Dynamics, NBER WP
No. 18719, January.
E. Lazear. (2009) Firm-Specific Human Capital: A Skill-Weights Approach, JPE 117
(October), 919-40.
R. Gibbons and L. Katz. (1991) "Layoffs and Lemons," Journal of Labor Economics, 9
(October), 351-380.

17

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

D. Sullivan and T. Von Wachter. (2009) Job Displacement and Mortality: An Analysis using
Administrative Data, QJE 124(August), 1265-1306.

T. Von Wachter, J. Song, and J. Manchester. (2009) Long-Terms Earnings Losses due
to Mass Layoffs during the 1982 Recession: An Analysis Using U.S. Administrative Data
from 1974 to 2004. http://www.columbia.edu/~vw2112/papers/mass_layoffs_1982.pdf.
S. Davis and T. Von Wachter. (2011) Recession and the Costs of Job Loss. Brookings Papers
on Economic Activity, Fall, 1-72.
D. Mortenson and C. Pissarides. (1994). Job Creation and Destruction in the Theory of
Unemployment. Review of Economic Studies 61(3), 397-416.
R. Rogerson, R. Shimer, and R. Wright. (2005). Search Theoretic Models of the Labor Market:
A Survey. Journal of Economic Literature (December), 959-988.
III.b. Agency, Incentives, and Wage Determination (Lecture 13)
*

B. Holmstrom. (1979) "Moral Hazard and Observability," Bell Journal of Economics, 10.1
(Spring), 74-91.

C. Prendergast. (2002) The Tenuous Tradeoff between Risk and Incentives, Journal of
Political Economy 110 (October), 1071-1102.

E. Lazear. (2000) "Performance Pay and Productivity," AER 90 (December), 1346-61.

M. Bertrand and S. Mullainathan. (2001) Are CEOs Rewarded for Luck? The Ones without
Principals Are, Quarterly Journal of Economics 116 (August), 901-932.

E. Lazear and S. Rosen. (1981) "Rank-Order Tournaments as Optimum Labor Contracts,"

Journal of Political Economy, 89 (October), 841-864.

V. Lavy. (2009) Performance Pay and Teachers Effort, Productivity and Grading Ethics,
American Economic Review, 99(5) 1979-2011.
B. Holmstrom and P. Milgrom. (1987) Aggregation and Linearity in Provision of Intertemporal
Incentives, Econometrica 55 (March), 303-28.
C. Prendergast. (1999) "The Provision of Incentives within Firms," JEL 37 (March), 7-63.
P. Oyer. (1998) "Fiscal Year Ends and Nonlinear Incentive Contracts," QJE (Feb) 113, 149-85
O. Bandiera, I. Barankay, and I. Rasul. (2007), Incentives for Managers and Inequality among
Workers: Evidence from a Firm-Level Experiment, QJE 122 (May), 729-773.

18

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

B. Shearer. (2004) Piece Rates, Fixed Wages and Incentives: Evidence from a Field
Experiment, Review of Economic Studies, 71(2), 513-534.
G. Baker, R. Gibbons, and K.J. Murphy. (1994) "Subjective Performance Measures in Optimal
Incentive Contracts," QJE 109 (November), 1125-56.
A. Mas and E. Moretti. (2009), Peers at Work, AER 99 (March), 112-45.
O. Bandiera, I. Barankay, and I. Rasul. (2005) Social Preferences and the Response to
Incentives, QJE 120 (August), 917-62.
R. Ehrenberg and M. Boganno. (1990) Do Tournaments Have Incentive Effects?, JPE 98(6),
1307-24.
R. Gibbons and K. Murphy. (1990) "Relative Performance Evaluation for Chief Executive
Officers" Industrial and Labor Relations Review, s30-s51.
A. Mas. (2006) Pay, Reference Points and Police Performance, QJE 121 (August), 783-821.
U. Gneezy and A. Rustichini. (2000) Pay Enough or Dont Pay at All, QJE 115 (August).
B. Holmstrom (1999) Managerial Incentive Problems: A Dynamic Perspective Review of
Economic Studies 66(1), 169-82.
J. Chevalier and G. Ellison (1999) Career Concerns of Mutual Fund Managers. QJE 114(2),
389-432.
G. Baker and B.J. Hall. (2004) CEO Incentives and Firm Size, J. Labor Economics 22, 767-98.
M. Bertrand. (2009) CEOs, Annual Review of Economics 1(1): 121-150.
III.c. Human Resource Policies and Management Practices (Lecture 14)
*

N. Bloom and J. Van Reenen. (2007) Measuring and Explaining Management Practices across
Firms and Countries, Quarterly Journal of Economics, 122(4), 1341-1408.

N. Bloom, B. Eifert, A. Mahajan, D. McKenzie, and John Roberts. (2013). Does Management
Matter? Evidence from India, QJE 128(1), 1-51.

C. Ichniowski, K. Shaw, and G. Prennushi. (1997) The Effects of Human Resource Management
Practices on Productivity: A Study of Steel Finishing Lines, AER 87(3), 291-313.

N. Bloom, C. Propper, S. Seiler, and J. Van Reenen. (2010). The Impact of Competition on
Management Quality: Evidence from Public Hospitals. NBER Working Paper No. 16032 (May).

19

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

N. Bloom and J. Van Reenen. (2010) Human Resource Management and Productivity,
Handbook of Labor Economics, vol. 4B, 1697-1767.
M. Bennedsen et al. (2007) "Inside the Family Firm: the Role of Families in Succession
Decisions and Performance." Quarterly Journal of Economics 122(2), 647-691.
P. Oyer and S. Schaefer. (2010) Personnel Economics: Hiring and Incentives, Handbook of
Labor Economics, vol. 4B, 1769-1823.
D. Karlan and M. Valdivia. (2011) Teaching Entrepreneurship: Impact Of Business Training on
Microfinance Clients and Institutions, Review of Economics and Statistics 93(2), 510-527.
S. Black and L. Lynch. (2001) How to Compete: The Impact of Workplace Practices and
Information Technology on Productivity, Review of Economics and Statistics, 83(3), 434445.
P. Milgrom and J. Roberts. (1990) The Economics of Modern Manufacturing: Technology,
Strategy, and Organization, American Economic Review, 80(3), 51128.
C. Ichniowski and K. Shaw. (2003) "Beyond Incentive Pay: Insiders Estimates of the Value of
Complementary Human Resource Management Policies," JEP 17 (Winter), 155-80.
K. Shaw. (2009) Insider Econometrics: A Roadmap with stops along the way Labour
Economics 16(6), 607-17.
E. Lazear, K. Shaw, and C. Stanton. (2012) The Value of Bosses, NBER WP No.18317.
N. Bloom, R. Sadun, and J. Van Reenen. (2010), Does Product Market Competition Lead Firms
to Decentralize? American Economic Review (May).
M. Guadalupe and J. Wulf. (2010) The Flattening Firm and Product Market Competition: The
Effect of Trade Liberalization on Corporate Hierarchies, AEJ: Applied Economics 2(4), 105-27.
N. Bloom et al. (2013) Does Working from Home Work? Evidence from a Chinese
Experiment, NBER WP No. 18871, March.

IV. Labor Demand

IV.a. Basic Models of Labor Demand: Comparative Statics and Marshalls Rules (Lecture 15)
*

D. Hamermesh. (1993) Labor Demand, Princeton University Press, chs. 2, 6.

R. Freeman. (1994) "Enterprise Labor Demand," Labor Demand Notes, February.

20

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

D. Acemoglu and A. Finkelstein. (2008) Input and Technology Choices in Regulated Industries:
Evidence from the Health Care Sector, Journal of Political Economy 116(5), 837-80.
J. Abowd et al. (2007) "Technology and the Demand for Skill: An Analysis of Within and
Between Firm Differences," NBER WP No. 13043, April.
K. Clark and R. Freeman. (1980) "How Elastic is the Demand for Labor?" Review of Economics
and Statistics 62 (November), 509-20.
D. Hamermesh and S. Trejo. (2000) "The Demand for Hours: Direct Evidence from California,"
Review of Economics and Statistics 82 (February), 38-47.
Z. Griliches. (1969) "Capital-Skill Complementarity," RESTAT 51 (November), 465-68.
C. Goldin and L. Katz. (1998) "The Origins of Technology-Skill Complementarity," Quarterly
Journal of Economics 113, 693-732.
A. Bartel and F. Lichtenberg. (1987) "The Comparative Advantage of Educated Workers in
Implementing New Technology," RESTAT 69 (February), 1-11.
T. Sargent. (1978) "Estimation of Dynamic Labor Demand Schedules under Rational
Expectations," Journal of Political Economy 86, 1009-44.
D. Hamermesh. (1989) "Labor Demand and the Structure of Adjustment Costs," AER 79, 674-89.
IV.b. The Economics of Unions: Union Wage and Employment Determination (Lecture 15)
*

J. Brown and O. Ashenfelter. (1986) "Testing the Efficiency of Employment Contracts," Journal
of Political Economy 94 (June, part 2).

D. Card. (1990) "Unexpected Inflation, Real Wages, and Employment Determination in Union
Contracts," American Economic Review 79 (September).

J. DiNardo and D. Lee. (2004) "Economic Impact of New Unionization on Private Sector
Employers: 1984-2001," Quarterly Journal of Economics 119 (Nov.), 1383-1441.
R. Freeman and J. Medoff. (1984) What Do Unions Do?, Basic Books.
M. Espinosa and C. Rhee (1989) "Efficient Wage Bargaining as a Repeated Game," QJE, 565-88.
P. Grout. (1984) "Investment and Wages in the Absence of Binding Contracts," Econometrica 52.
D. Card, F. Devicienti, and A. Maida. (2011) Rent-Sharing, Holdup and Wages: Evidence from
Matched Panel Data, UC Berkeley, July; earlier version is NBER WP No. 16192.
M. Bils. (1991) "Testing for Contracting Effects on Employment," QJE Nov.

21

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

J. Abowd. (1989) "The Effect of Wage Bargains on the Stock Market Value of the Firm,"
American Economic Review, 79 (September), 774-809.
D. Lee and A. Mass. (2012) Long Run Impacts of Unions on Firms: New Evidence from
Financial Markets, 1961-99, Quarterly Journal of Economics 127 (February), 333-78.
R. Freeman and M. Kleiner. (1990) The Impact of New Unionization on Wages and Working
Conditions, Journal of Labor Economics 8 (Jan), S8-S25.
D. Card. (1996) The Effect of Unions on the Structure of Wages: A Longitudinal Analysis,
Econometrica 64 (July).
T. Lemieux. (1998) Estimating the Effect of Unions on Wage Inequality in a Model with
Comparative Advantage and Non-Random Selection, JOLE 16 (April), 261-91.
M. Gittleman and M. Kleiner. (2013) Wage Effects of Unionization and Occupational Licensing
Coverage in the United States, NBER WP No. 19061, May.
J. Abowd and T. Lemieux. (1993) The Effects of Product Market Competition on Collective
Bargaining Agreements: The Case of Foreign Competition in Canada, QJE 108, 983-1014.
IV.c. Labor Demand Applications: The Minimum Wage, Wage Subsidies, and Monopsony (Lecture 16)
*

D. Card. (1992) "Using Regional Variation to Estimate the Effects of the Federal Minimum
Wage," Industrial and Labor Relations Review, October, 22-37.

A. Dube, T.W. Lester, and M. Reich. (2010) Minimum Wage Effects across State Borders:
Estimates Using Contiguous Counties, RESTAT 92(4), 945-64.

D. Sullivan. (1989) "Monopsony Power in the Market for Nurses," Journal of Law and
Economics 32, S135-S178.

D. Staiger, J. Spetz, C. Phibbs. (2010) Is There Monopsony in the Labor Market? Evidence from
a Natural Experiment, Journal of Labor Economics 28(2), 211-36.
L. Katz. (1998) "Wage Subsidies for the Disadvantaged," in R. Freeman and P. Gottschalk, eds.,
Generating Jobs, Russell Sage Foundation, 21-53; also NBER WP No. 5679.
C. Brown. (1999) "Minimum Wages, Employment, and the Distribution of Income," in O.
Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3B.
D. Lee and E. Saez. (2012) Optimal Minimum Wage Policy in Competitive Labor Markets,
Journal of Public Economics 96, 739-49.
D. Card and A. Krueger. (1995) Myth and Measurement, Princeton University Press.

22

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

David Card and A. Krueger. (1994) Minimum Wages and Employment: A Case Study of the
Fast Food Industry in New Jersey, American Economic Review 84(4): 772-93.
S. Machin, A. Manning, and L. Ruhman. (2003) "Where the Minimum Wage Bites Hard:
Introduction of the Minimum Wage to a Low-Wage Sector," JEEA1 (March), 154-80.
D. Neumark and W. Wascher. (2006) "Minimum Wages and Employment: A Review of the
Evidence from the New Minimum Wage Research," NBER WP No. 12663, November.
L. Katz and A. Krueger. (1992) "The Effect of the Minimum Wage on the Fast Food Industry,"
Industrial and Labor Relations Review, October, 6-21.
S. Allegretto, A. Dube, M. Reich, and B. Zipperer. (2013) Credible Minimum Wage Strategies,
June; http://arindube.files.wordpress.com/2013/06/adrz_june_11_20132.pdf.
D. Neumark, I. Salas and W. Wascher 2013. Revisiting the Minimum Wage and Employment
Debate: Throwing out the Baby with the Bathwater? NBER WP No. 18681.
A. Falk, E. Fehr, and C. Zehnder. (2006) "Fairness Perceptions and Reservation Wages the
Behavioral Effects of Minimum Wages," Quarterly Journal of Economics 121 (Nov), 1347-82.
J. Cawley, D. Grabowski, and R. Hirth. (2006) "Factor Substitution in Nursing Homes," Journal
of Health Economics 25 (March), 235-47.
E. Hall, C. Propper, J. Van Reenen. (2010) "Can Pay Regulation Kill? Panel Data Evidence on
the Effects of Labor Markets on Hospital Performance," JPE 118(2), 222-73.
E. Dal B, F. Finan, and M. Rossi. (2013) Strengthening State Capabilities: The Role of
Financial Incentives in the Call to Public Service, QJE 128(August), 1169-1218.

V. Changes in the Wage Structure and Earnings Inequality

V.a. Understanding Wage Structure Changes: Supply-Demand-Institutions Analysis (Lectures 17 & 18)
*

L. Katz and D. Autor. (1999) "Changes in the Wage Structure and Earnings Inequality," in
O. Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3A, pp. 1463-1555.

D. Autor, L. Katz, and M. Kearney. (2008) "Trends in U.S. Wage Inequality: Revising the
Revisionists," Review of Economics and Statistics 90 (May), 30-23.

T. Piketty and E. Saez. (2003) "Income Inequality in the United States, 1913-1998,"Quarterly
Journal of Economics 117 (February), 1-39; updates at http://elsa.berkeley.edu/~saez/

C. Goldin and L. Katz. (2009) "The Race between Education and Technology: The Evolution of
U.S. Educational Wage Differentials, 1890 to 2005," updated chapter 8 of RBET (2008).

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Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

D. Acemoglu and D. Autor. (2012) "What Does Human Capital Do? A Review of Goldin and
Katz's The Race between Education and Technology." JEL 50(2): 42663.

C. Juhn, K.M. Murphy, and B. Pierce. (1993) "Wage Inequality and the Rise in the Returns to
Skill." Journal of Political Economy 101 (June): 410-42.

T. Lemieux. (2006) "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or
Rising Demand for Skill?," American Economic Review 96 (September), 461-98.

W. Kopczuk, E. Saez, and J. Song. (2010), "Earnings Mobility and Inequality in the United
States: Evidence from Social Security Data since 1937, QJE 125(1), 91-128.

L. Katz and K.M. Murphy. (1992) "Changes in Relative Wages, 1963-87: Supply and Demand
Factors," Quarterly Journal of Economics, February, 35-78.

D. Card and T. Lemieux. (2001), "Can Falling Supply Explain the Rising Return to College for
Younger Men? A Cohort-Based Analysis," Quarterly Journal of Economics 116(May): 705-46.

J. Bound and G. Johnson. (1992) "Changes in the Structure of Wages in the 1980s: An Evaluation
of Alternative Explanations." American Economic Review 82 (June): 371-92.
C. Goldin and L. Katz. (2007) Long-Run Changes in the Wage Structure: Narrowing, Widening,
Polarizing, Brookings Papers on Economic Activity, no. 2, 135-67.
C. Goldin and R. Margo. (1992) "The Great Compression: The Wage Structure at Mid-Century,"
Quarterly Journal of Economics, February, 1-33.
N. Fortin. (2006) "Higher-Education Policies and the College Wage Premium: Cross-State
Evidence from the 1990s," American Economic Review 96 (September).
C. Juhn and D. Kim. (1999), "The Effects of Rising Female Labor Supply on Male Wages,"
Journal of Labor Economics 17 (January), 23-48.
P. Gottschalk and R. Moffitt. (1994) "The Growth of Earnings Instability in the U.S. Labor
Market," Brookings Papers on Economic Activity, 217-72.
S. Haider. (2001) "Earnings Instability and Earnings Inequality of Males in the United States:
1967-1991," Journal of Labor Economics 19 (October), 799-836.
J. DeBacker, B. Heim, V. Panousi, and I. Vidangos. (2013) Rising Inequality: Transitory or
Permanent? Evidence from a Panel of U.S. Tax Returns, Brookings Papers;
http://www.brookings.edu/~/media/Projects/BPEA/Spring%202013/2013a_panousi.pdf
P. Gottschalk and R. Moffitt (2009) The Rising Instability of U.S Earnings, JEP 23(Fall), 3-24.

24

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

F. Guvenen, S. Ozkan, and J. Song. (2012) The Nature of Countercylical Income Risk, June;

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2046642.
N. Fortin and T. Lemieux. (2010) Decomposition Methods in Economics, HLE, vol. 4A, 1-102.
D. Hamermesh. (1999) "Changing Inequality in Markets for Workplace Amenities," Quarterly
Journal of Economics 114 (November), 1085-1123.
B. Pierce. (2001) Compensation Inequality, QJE 116 (Nov.), 1493-1525.
D. Cutler and L. Katz. (1992), "Rising Inequality? Changes in the Distribution of Income and
Consumption in the 1980s," American Economic Review 82 (May), 546-51.
O. Attanasio, E. Hurst, and L. Pistaferrri. (2012) The Evolution of Income, Consumption, and
Leisure Inequality in the U.S., 1980-2010, NBER WP No. 17982, April.
M. Aguiar and M. Bils. (2012) Has Consumption Inequality Mirrored Income
Inequality?, U. of Rochester, May; http://dl.dropbox.com/u/285065/mirror.pdf
V. b. Immigration and the Wage Structure (Lecture 19)
*

J. Altonji and D. Card. (1991) "The Effects of Immigration on the Labor Market Outcomes of
Less-Skilled Natives," in J. Abowd and R. Freeman, eds., Immigration, Trade, and the Labor
Market, U. of Chicago Press and NBER.

G. Borjas. (2003) "The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of
Immigration on the Labor Market," Quarterly Journal of Economics 118 (November), 1335-74.

D. Card. (2009) Immigration and Inequality, AER 99 (May), 1-21.

G. Borjas. (1995) The Economic Benefits from Immigration, JEP 9 (Spring), 3-22.
F. Blau and L. Kahn. (2012) Immigration and the Distribution of Incomes, NBER WP 18515.
S. Kerr and W. Kerr. (2011) Economic Impacts of Immigration: Survey, NBER WP No. 16736.
D. Card. (1990) "The Impact of the Mariel Boatlift on the Miami Labor Market," ILRR, Jan.
G. Borjas, R. Freeman, and L. Katz. (1997) "How Much Do Immigration and Trade Affect Labor
Market Outcomes?" Brookings Papers on Economic Activity, no. 1, 1-90.
G. Ottaviano and G. Peri. (2012) Rethinking the Effect of Immigration on Wages, Journal of
the European Economic Association 10(1), 152-97.
G. Borjas, J. Grogger and G. Hanson. (2011) Substitution among Immigrants, Natives, and Skill
Groups, NBER WP No. 17461, September.

25

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

G. Borjas. (2001) "Does Immigration Grease the Wheels of the Labor Market?" Brookings
Papers on Economic Activity, no. 1, 69-133.
B. Cadena and B. Kovak. (2013) Immigrants Equilibrate Local Labor Markets: Evidence from
the Great Recession, NBER WP No. 19272, August.
M. Foged and G. Peri. (2013) Immigrants and Native Workers: New Evidence Using
Longitudinal Employer-Employee Data, NBER WP No. 19315, August.
A. Aydemir and G. Borjas. (2011), "Attenuation Bias in Measuring the Wage Impact of
Immigration," Journal of Labor Economics 29 (January), 69-112.
G. Peri and C. Sparber. (2009) Task Specialization, Immigration, and Wages, AEJ: Applied
Economics 1 (July), 135-69.
W. Kerr and W. Lincoln. (2010) "The Supply Side of Innovation: H-1B Visa Reforms and U.S.
Ethnic Invention." Journal of Labor Economics 28 (July), 473-508.
G. Borjas and K. Doran (2012) The Collapse of the Soviet Union and the Productivity of
American Mathematicians, QJE 127(3), 1143-1203.
V.c. Labor Market Institutions and Wage Inequality (Lecture 19)
*

J. DiNardo, N. Fortin, and T. Lemieux. (1996) "Labor Market Institutions and the Distribution of
Wages, 1973-1992: A Semiparametric Approach," Econometrica, 64 (Sept): 1001-44.

D. Card, J. Heining, and P. Kline. (2013) Workplace Heterogeneity and the Rise of German
Wage Inequality, QJE 128(August), 67-1015.

D. Lee. (1999) "Wage Inequality in the U.S. during the 1980s: Rising Dispersion or Falling
Minimum Wage?" Quarterly Journal of Economics 114 (August), 977-1023.

T. Lemieux, W.B. MacLeod and D. Parent. (2009) Performance Pay and Wage Inequality,
Quarterly Journal of Economics, 124 (February), 1-49.
G. Faggio, K. Salvanes, J. Van Reenen. (2010) "The Evolution of Inequality in Productivity and
Wages: Panel Data Evidence," Industrial and Corporate Change 19(6): 1919-51.
R. Freeman and L. Katz, eds. (1995), Differences and Changes in Wage Structures, NBER.
D. Acemoglu, P. Aghion, and G. Violante. (2001), "Deunionization, Technical Change and
Inequality," Carnegie Rochester Conference Series on Public Policy 55 (December), 229-64.
F. Blau and L. Kahn. (2005), "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?"
RESTAT 87(1), 184-93.

26

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

F. Blau and L. Kahn. (1996) "International Differences in Male Wage Inequality: Institutions
versus Market Forces," Journal of Political Economy 104 (August), 791-837.
L. Kahn. (2000) "Wage Inequality, Collective Bargaining, and Relative Employment from 1985
to 1994: Evidence from Fifteen OECD Countries," RESTAT 72 (November), 564-79.
D. Acemoglu. (2003) "Cross-Country Inequality Trends," Economic Journal 70 (April), 199-230.
C. Dustmann, J. Ludsteck, and U. Schnberg. (2009) Revisiting the German Wage Structure,
Quarterly Journal of Economics 124 (May), 843-81.
D. Autor, A. Manning, and C. Smith. (2010) The Minimum Wages Role in the Evolution of
U.S. Wage Inequality: A Modest Re-Assessment, MIT; http://econ-www.mit.edu/files/3279.
D. Card, T. Lemieux, W.C. Riddell. (2003) "Unionization and Wage Inequality: A
Comparative Study of the U.S., UK and Canada," NBER WP No. 9473, February.
D. Card. (2001) "The Effects of Unions on Wage Inequality in the U.S. Labor Market" Industrial
and Labor Relations Review 54 (January), 296-315; also NBER WP No. 6520, April 1998.
B. Frandsen. (2012) Why Unions Still Matter: The Effects of Unionization on the Distribution of
Employee Earnings, MIT; http://economics.mit.edu/files/6950.
A. Dube and E. Kaplan. (2010) Does Outsourcing Reduce Wages in Low-Wage Service
Occupations? Evidence from Janitors and Guards, ILRR 62(2).
VI. Technical Change, Organizational Change and Skill Demands
VI.a. Technical Change and Skill Demands The Task Framework (Lectures 20 and 21)
*

D. Acemoglu and D. Autor. (2011). Skills, Tasks and Technologies: Implications for
Employment and Earnings. Handbook of Labor Economics, vol. 4B, 1043-1171.

D. Autor, F. Levy, and R. Murnane. (2003) "The Skill Content of Recent Technological Change:
An Empirical Exploration," Quarterly Journal of Economics 118 (November), 1279-1333.

C. Gathmann and U. Schoenberg. (2010) How General is Human Capital? A Task-Based

Approach, Journal of Labor Economics, 28(1), 1-49

M. Goos, A. Salomons, and A. Manning. (2013). Explaining Job Polarization: Routinization

and Offshoring; www.econ.kuleuven.be/public/n06022/EUPOL-20130805-final.pdf.
D. Autor. (2013). The Task Approach to Labor Markets: An Overview. NBER WP No. 18711.
D. Autor and D. Dorn. (2013) The Growth of Low Skill Service Jobs and the Polarization of the
U.S. Labor Market. American Economic Review 103(5), 15531597.

27

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

D. Autor, L. Katz, and M. Kearney. (2006) "The Polarization of the U.S. Labor Market,"
American Economic Review 96 (May), 189-94.
A. Bartel, C. Ichniowski, and K. Shaw. (2007) How Does Information Technology Affect
Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement and Worker
Skills. Quarterly Journal of Economics 122(4), 1721-1758.
J.E. Bessen. (2011) Was Mechanization De-Skilling? The Origins of Task-Biased Technical
Change, Boston University School of Law Working Paper No. 11-13, March.
C. Goldin and L. Katz. (2008) The Race between Education and Technology, Harvard U. Press.
M. Goos and A. Manning. (2007) Lousy and Lovely jobs: The Rising Polarization of Work in
Britain, Review of Economics and Statistics 89 (1), 118133.
J. Heckman and J. Scheinkman. (1987) The Importance of Bundling in a Gorman-Lancaster
Model of Earnings. The Review of Economic Studies 54 (2), 243255.
L. Katz and R. Margo. (2013) Technical Change and the Relative Demand for Skilled Labor:
The United States in Historical Perspective, NBER WP No. 18752, February.
W. Nordhaus. (2001) Two Centuries of Progress in Computing. Journal of Economic History
67(1), 128-159.
D. Acemoglu. (2002) "Technical Change, Inequality and the Labor Market," JEL 40(1), 7-72.
VI.b. Organizational Change, Market Structure, and the Division of Labor (Lectures 21 and 22)
*

G. Becker and K.M. Murphy. (1992). The Division of Labor, Coordination Costs and
Knowledge, Quarterly Journal of Economics 107(4), 1137-1160.

W. Dessein and T. Santos. (2006) Adaptive Organizations. JPE 114(5), 956-995.

D. Acemoglu. (2002) Directed Technical Change. Review of Economic Studies, 69, 781-809.

A. Pallais. (2013) Inefficient Hiring in Entry-Level Labor Markets, Harvard, February.

D. Hounshell. (1984) From the American System to Mass Production, 1800-1932. Baltimore: The
John Hopkins University Press, Chapters 5 7.
F.W. Taylor. (1911) The Principles of Scientific Management. New York: Harper Brothers.
N. Bloom, Nicholas, E. Brynjolfsson, L. Foster, R. Jarmin, I. Saporta-Eksten, and J. Van Reenen.
(2013) Management in America. Center for Economic Studies Working Paper No. CES 13-01

28

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

T. Bresnahan, E. Brynolfsson, and L. Hitt. (2002) Information Technology, Workplace

Organization and the Demand for Skilled Labor: Firm-level Evidence. QJE 117, 339-376.
C. Goldin and L. Katz. (1998) "The Origins of Technology-Skill Complementarity," Quarterly
Journal of Economics 113, 693-732.
D. Thesmar and M. Thoenig. (2000) Creative Destruction and Firm Organizational Choice.
Quarterly Journal of Economics, 115(4), 1201-1237.
O. Galor and O. Moav. (2000) "Ability-Biased Technological Transition, Wage Inequality and
Economic Growth," Quarterly Journal of Economics 115 (May), 469-97.
VI.b. The Economics of Superstars (Lecture 22)
*

S. Rosen. (1981) The Economics of Superstars. AER 71(5), 845-858.

M. Tervio. (2008) The Difference that CEOs Make: An Assignment Model Approach.
American Economic Review 98(3), 642-668.

M. Tervio. (2009) Superstars and Mediocrities: Market Failure in the Discovery of Talent. The
Review of Economic Studies, 72(2), 829-850.
A. Atkinson, T. Piketty, and E. Saez. (2011) "Top Incomes in the Long-Run of History, Journal
of Economic Literature 49(1) 3-71.
T. Philippon and A. Reshef. (2012) Wages and Human Capital in the U.S. Financial Industry:
1909-2006, QJE 127 (Nov), 1551-1609.
J. Bakija, A. Cole, and B. Heim. (2012) Jobs and Income Growth of Top Earners and the Causes
of Changing Income Inequality: Evidence from U.S. Tax Return Data. U.S. Department of the
Treasury Working Paper, April.
X. Gabaix and A. Landier. (2008) Why has CEO Pay Increased so Much? QJE 123(1), 49-100.
C. Frydman and R. Saks. (2010) Executive Compensation: A New View from a Long-Term
Perspective, Review of Financial Studies 23 (May), 2099-2138.

VII. Trade, Offshoring and Labor Markets

VII.a. The Canonical Hecksher-Ohlin Model: Theory and Evidence (Lecture 23)
*

P. Beaudry and D. Green. (2003) Wages and Employment in the United States and Germany:
What Explains the Differences? American Economic Review 93(3), 573602.

E. Berman, J. Bound, and S. Machin. (1998), "Implications of Skill-Biased Technological

Change: International Evidence," QJE 113 (November), 1245-79.

29

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

C. Hsieh and K. Woo. 2005. The Impact of Outsourcing to China on Hong Kongs Labor
Market. American Economic Review 95(5), 16731687.

P. Krugman. (2000) "Technology, Trade and Factor Prices," Journal of International Economics
50 (February), 51-71.
P. Cortes. (2008) The Effect of Low-skilled Immigration on U.S. Prices: Evidence from CPI
Data, Journal of Political Economy, 116(3), 381-422.
J. Haskel, R. Lawrence, E. Leamer, and M. Slaughter. (2012) "Globalization and U.S. Wages:
Modifying Classic Theory to Explain Recent Facts." JEP, 26(2): 11940.
G. Johnson and F. Stafford. (1999) "The Labor Market Implications of International Trade," in O.
Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3B, pp. 2215-88.
P. Krugman. (2008) Trade and Wages Reconsidered, BPEA, no. 1, 103-54.
E. Leamer. (2000), "What the Use of Factor Contents?" Journal of International Economics 50
(February), 17-49.
E. Lewis. (2011) Immigration, Skill Mix, and Capital-Skill Complementarity, QJE 126 (May).
A. Wood. (1995). How Trade Hurt Unskilled Workers. JEP 9(3), 57 80.

VII.b. Trade and Offshoring: Ricardian Models and Recent Evidence (Lectures 24 and 25)
*

J. Eaton and S. Kortum. (2002) Technology, Geography and Trade, Econometrica 70

(November), 1741-1779.

J. Eaton and S. Kortum. (2012) Putting Ricardo to Work, JEP 26(Spring), 65-90.

D. Autor, D. Dorn, and G. Hanson. (2013) The China Syndrome: Local Labor Market Effects of
Import Competition in the United States, AER; http://economics.mit.edu/files/6613.

S. Becker, K. Ekholm, and M. Muendler. (2013) Offshoring and the Onshore Composition of
Tasks and Skills. Journal of International Economics 90(1), 91-106.

D. Hummels, R. Jorgensen, J. Munch and C. Xiang. (2013) The Wage Effects of Offshoring:
Evidence from Danish Matched Worker-Firm Data, Purdue University Working paper, May.
A. Blinder and A. Krueger. (2009) Alternative Measures of Offshorability: A Survey
Approach. NBER Working Paper No. 15287, August.
S. Firpo, N. Fortin, and T. Lemieux. (2010) Occupational Tasks and Changes in the Wage
Structure, University of British Columbia, July.

30

Economics 2810a
Fall 2013 Semester

Department of Economics
Harvard University

N. Bloom, M. Draca, and J. Van Reenen. (2012). Trade Induced Technical Change? The Impact
of Chinese Imports on Innovation, IT, and Productivity; July;
http://www.stanford.edu/~nbloom/TITC.pdf.
G. Grossman and E. Rossi-Hansberg. (2008) Trading Tasks: A Simple Theory of Outsourcing.
American Economic Review 98(5), 1978-1997.
G. Hanson (2012) The Rise of Middle Kingdoms: Emerging Economies in Global Trade.
Journal of Economic Perspectives 26(1), 41-64.
B. Kovak, (2013). Regional Effects of Trade Reform: What is the Correct Measure of
Liberalization? American Economic Review 103(5), 19601976.
A. Lileeva and D. Trefler. (2010) Improved Access to Foreign Markets Raises Productivity
For Some Plants. Quarterly Journal of Economics, 125(3), 1051-1099.
M. Melitz and D. Trefler. (2012) Gains from Trade when Firms Matter. Journal of Economic
Perspectives 26(1), 91-118.
P. Topolova. (2010) Factor Immobility and Regional Impacts of Trade Liberalization: Evidence
on Poverty from India. American Economic Journal: Applied Economics 2(4), 1-41.
E. Verhoogen. (2008) Trade, Quality Upgrading and Wage Inequality in the Mexican
Manufacturing Sector. Quarterly Journal of Economics, 123(2), 489-530.
D. Autor, D. Dorn, G. Hanson, and J. Song. (2013) Trade Adjustment: Worker Level Evidence,
NBER WP No. 19226, July.

31