SemesterFall Semester, 2019
DepartmentThe International Master Program of Applied Economics and Social Development (IMES) , First Year The International Master Program of Applied Economics and Social Development (IMES) , Second Year
Course NameLabor Economics (III)
Course TypeElective
Course Objective
Course Description
Course Schedule

Lecture 1: Introduction (9/20)

  •     Meanings of Identification

  •     Reduced Form vs. Structural Model Identification

Lecture 2: Review for Linear Regression (9/27)            

  •     Omitted Variable Bias

  •     Practical Regression Hints

  •     Krueger (1993) + DiNardo and Pischke (1997)

Lecture 3: Topics on Labor Supply: Static Labor Supply (10/4)

  •     Substitution and Income Effects of Labor Supply

  •     Labor Supply Effect of Unemployment Insurance (UI)

  •     Welfare and EITC 

Problem Set 1

Lecture 4: Topics on Labor Supply: Intertemporal Labor Supply (10/18) 

  •     Farber (2005) + Ashenfelter et. al (2010)

  •     Life-Cycle Labor Supply

  •     Elderly Labor Supply and Retirement Benefits

Lecture 5: Panel Data and Difference-in-Differences (10/25)

  •     Fixed Effect Estimation

  •     Difference-in-Differences

  •     Chu (2015) and Dickert-Conlin, Elder, and Moore (2011)

Mid-Term Presentations (11/1)

Lecture 6: Synthetic Control and Standard Errors (11/8)

  •     Standard Errors: How Should We View Uncertainty in DD Settings?

  •     Synthetic Control Method

  •     Generalized Synthetic Control

Lecture 7: Topics on Labor Demand: Minimum Wage (11/15)

  •     Substitution and Scale Effects of Labor Demand 

  •     Aaronson, French, Sorkin, and To (2018) 

  •     Meer and West (2015)

Problem Set 2

Lecture 8: Instrumental Variables (11/22)

  •     IV and Simultaneous Equations           

  •     IV and LATE

  •     Angrist and Evans (1998): Labor Supply and Fertility

Lecture 9: Topics on Labor Demand: Bartik Instruments (11/29)

  •     The China Syndrome: Autor et. al (2013)

  •     Bartik Instrument 

  •     Sorkin (2019)

Lecture 10: Regression Discontinuity (Kink) Designs I (12/7)

  •     Problem Set 1

  •     Identifying Assumptions and Estimation

  •     IV and RD

Lecture 11: Regression Discontinuity (Kink) Design II (12/14)

  •     Extrapolation of RD

  •     Regression Kink Design

  •     Unemployment Insurance

Problem Set 3

Lecture 12: Decomposition Methods in Economics (12/21)

  •     Oaxaca-Blinder Decomposition

  •     DFL Reweighting Method

  •     Wage Density Decomposition

Lecture 13: Sufficient Statistic Approach for Welfare Analysis (12/28)

  •     Basic Search Model

  •     Optimal UI: Baily-Chetty Formula

  •     Consumption Based Approach (Gruber 1997)

Problem Set 4

Lecture 14: Sufficient Statistic Approach for Welfare Analysis 

  •     Moral Hazard and Liquidity (Chetty 2008)

  •     Reservation Wage Approach (Shimer and Werning 2007)

  •     Macroeconomics Effects of UI (Lalive et. al 2015)

Final Presentations (1/3)


Teaching Methods
Teaching Assistant

1. 50% Problem Sets 

We will do four problem sets during the course of semester. The problem set questions will include both theoretical questions and statistical analysis of data, which will involve the software package STATA.

2. 50% Paper Proposal:

Each student is required to write a paper proposal. You should arrange to meet with me to talk about a topic for your paper before midterm presentations. Final proposals are due on January 20.


Textbook & Reference

Recommended Text for Labor Economics

George Borjas, Labor Economics (6th edition)

Recommended Text for Econometrics:

Joshua D. Angrist and JÖrn-Steffen Pischke (2009), Mostly Harmless Econometrics, Princeton University Press 

Joshua D. Angrist and JÖrn-Steffen Pischke (2016), Mastering 'Metrics, Princeton University Press 



Urls about Course
You can download course materials at or