AMERICAN UNIVERSITY IN BULGARIA

Department of Economics
Spring 2019

ECO 231 Labor Economics

TR 12:30-13:45 BAC 202

Professor: Dr. J. Mark Leonard

email: mleonard@aubg.edu Office: BAC 320

W 12:00-13:00,
Phone: 888 494 Student hours: R 13:00-14:00,
or by appointment

Course Objectives: Labor economics is the study of the markets for labor resources. Labor
economists are involved in studying everything from salaries of professional sports stars to
the impact of welfare program reforms on working hours and the lives of poor people.
Arguably, labor economics is the broadest sub-discipline of economics. In this course, you
will gain a foundation for understanding studies in labor economics and its application in
examining a wide range of work-related phenomena.

This course satisfies the expectations of the Economics curriculum through the following
skill or competency-based student outcomes:
• analyze the behavior of labor markets and individuals in the context of decisions
made relative to labor supply and labor demand
• use appropriate graphical or mathematical analysis to demonstrate the effects of
changes in an agent’s behavior and market outcomes
• analyze and predict the effect of changes in economic variables on agents’ behaviors
and market outcomes within the context of various models
• explain in written and in oral form the reasoning and application of tools used for
examining issues with respect to labor markets.

Required Text: Borjas, George J. 2016. Labor Economics 7th ed. New York: McGraw-Hill.

Examinations: There will be two exams. The two exams together will count for 50% of
your course grade.

Homeworks and Quizzes: There will be a number of homework assignments this semester.
There may also be some announced or unannounced quizzes during the semester, depending
on the participation and performance of the class. The homeworks and quizzes will count in
total for 50% of the final grade.

Make-up Policy: All exams, quizzes, laboratories, and written work must be completed and
turned in when the exam, quiz, laboratory, or written work has been scheduled. No late
work will be accepted for full credit and it may not be accepted at all. You must contact me
as soon as possible about any attendance problem so that we can make arrangements, if
possible. Documentation of any excuse must be presented.

Grades: Grades should reflect what you demonstrated you have learned. If you do not
understand why you have earned the grade you have, please schedule a consultation with
me. Any course curves that may occur will be determined based on the final course totals
 ECO 231 Labor Economics Spring 2019 Syllabus, page 2

only. No extra credit will be offered to an individual student. The grading scale is as
follows:

Score Grade
93.0 – 100.0 A
90.00 – 92.9 A-
87.0 – 89.9 B+
83.0 – 86.9 B
80.0 – 82.9 B-
77.0 – 79.9 C+
73.0 – 76.9 C
70.0 – 72.9 C-
67.0 – 69.9 D+
60.0 – 66.9 D
Below 60.0 F

These scores are sufficient, but not necessary, for each grade. NOTE: I do not round grades
beyond one-tenth of a point (i.e., 86.9 is a B, NOT a B+). An Incomplete grade will only be
given in accordance with University policy. See the Academic Catalog for complete
information on the availability of an Incomplete grade for a course.

Academic Honesty Policy: Since honesty in the classroom is required, cheating,

plagiarism, or knowingly furnishing false information constitutes a violation. Suspected
violations of academic honesty will be addressed according to AUBG policy.

Classroom Civility: Each student is encouraged to help create an environment during class
that promotes learning, dignity, and mutual respect for everyone. Any student whose
behavior disrupts other students’ opportunities to learn will be asked to leave the class and
subjected to other disciplinary action.

Students with Disability: Any student in this course who has a disability that prevents the
fullest expression of abilities should contact me personally as soon as possible so that we
can discuss class requirements.

Tentative Course Outline:

The course outline is approximate and is likely to be altered as we progress through the
semester. Some topics may take more time or less time to cover adequately than is noted
here. We may also have more time in the later weeks of the semester for other topics. Any
changes to this outline will be announced in class.

Date Topics Readings

22-Jan Introduction Syllabus
Borjas ch. 1+appendix
24-Jan Labor supply Borjas ch. 2

29-Jan
31-Jan Application: transfer payments
5-Feb Unemployment insurance
7-Feb
12-Feb Home production, marriage, & children
14-Feb
 ECO 231 Labor Economics Spring 2019 Syllabus, page 3

Date Topics Readings

19-Feb Labor demand Borjas ch. 3
21-Feb
26-Feb Minimum wages, Monopsony Borjas ch. 4
28-Feb
5-Mar Compensating differentials Borjas ch. 5
7-Mar Human capital Borjas ch. 6
12-Mar
14-Mar Midterm Exam
19-Mar Spring Break No class
21-Mar Spring Break No class
26-Mar The wage structure Borjas ch. 7
28-Mar
2-Apr Mobility Borjas ch. 8
4-Apr
9-Apr Discrimination Borjas ch. 9
11-Apr
16-Apr Unions and Bargaining Borjas ch. 10
18-Apr Incentive Pay Borjas ch. 11
23-Apr
25-Apr Unemployment Borjas ch. 12
30-Apr
2-May Entrepreneurship TBA
6-10 May Final Exams (see official schedule)