Type of Credit: Elective
Credit(s)
Number of Students
上課時間：Monday, 9:10-12:00 a.m.
上課地點：社科院館, Room 209
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This course is the first part of a four-course sequence in labor economics. The purpose of this course is to gain insights into life cycle aspects of labor economics. We thus first review the tools for decisions made in a dynamic framework, and apply them to understanding the enhancement of earnings capacity within the labor market. This entails learning the basic mathematical technique of optimal control theory and applying it to the allocation of resources used in the lifetime earnings augmentation process. After understanding this process, we shall deal with the application of this theory in explaining the earnings distribution and other labor market phenomena.
The reading list is more comprehensive than necessary for this course. Part of the readings is listed for the needs in related studies on labor Economics. Thus those readings that are not required, but that merely enhance one's knowledge of the field are not marked with an asterisk (*). Those articles denoted with an asterisk are highly recommended. The schedule and selected readings are subject to revision as the course progresses.
能力項目說明
This course covers the fundamentals not only for the courses of labor economics II-IV, but also for the advanced research on the issues of modern labor market. As such, the course should be of interest to those graduate students or academics wanting to build up or expand their knowledge in labor economics and to practitioners wishing to understand both theoretical and empirical aspects in this area. The goal of this course is therefore to acquaint students with a wide range of basic but important topics in labor economics and can be briefly described as follows:
Learn the basic mathematical technique of optimal control theory and apply it to the allocation of time and other resources used in the life-cycle earnings capacity augmentation process of human capital investment.
Learn how and why the Mincer’s human capital earnings equation shapes as a downward concave function in the life cycle age-profile, as have been demonstrated by human capital theory.
Learn the differences between general and firm-specific trainings, as well as between formal schooling and post-school investment in human capital.
Learn the return to investment in human capital, internal rate of return to education, and the rate-of-return approach.
Learn how the omission of ability variable from the Mincer equation (i.e., the ability-omitted problem) could cause the bias in the estimation of Mincer's earnings equation. Especially, we want to introduce the approach to correcting this type of bias.
Introduce the educational screening hypothesis with the application of interaction term to the empirical study.
We want to show how Heckman to set up his 1979 two-stage estimation approach based on the economic model of self-selection that was proposed far earlier by Roy (1951).
We want to analyze the occupational choice and international migration choice via the self-selection process as proposed by Roy (1951).
| 教學週次Course Week | 彈性補充教學週次Flexible Supplemental Instruction Week | 彈性補充教學類別Flexible Supplemental Instruction Type |
|---|---|---|
| 週次Week | 課程主題Course Theme | 課程內容與指定閱讀Content and Reading Assignment | 教學活動與作業Activity and Homework | 學習投入時數Estimated time devoted to coursework per week | |
|---|---|---|---|---|---|
| 課堂講授Lecture Hours | 課程前後Preparation Time | ||||
|
1 |
I- MOTIVATION AND OVERVIEW
|
POLACHEK, S. (2008), “Earnings over the Lifecycle: The Mincer Earnings Function and Its Applications,” in Foundations and Trends in Microeconomics, 4(3): 165-272.
|
N/A
|
3.0 |
1.0 |
|
2-4 |
II- HUMAN CAPITAL THEORY
|
* BEN-PORATH, Y. (1967), “The Production of Human Capital and the Life Cycle of Earnings,” Journal of Political Economy, 75(4), 352-365.
|
N/A
|
3.0 |
2.0 |
|
5 |
III- THE ESTIMATION OF HUMAN CAPITAL PRODUCTION FUNCTION
|
* 江豐富(2008), 「從勞動所得估計 台灣的人力資本生 產與投資」,〈台灣經濟預測與政策〉, 38(2), 111-140。
|
N/A
|
3.0 |
2.0 |
|
6-8 |
IV- THE MINCER'S EARNINGS FUNCTION
(1) Introduction to the Panel (Longitudinal) Data; (2) The Questionnaire of the Manpower Survey, The Questionnaire of the Manpower utilization Survey, and the Coding Book. |
* MINCER, J. (1974), Schooling, Experience and Earnings, New York: Columbia University Press for NBER, Chapters 1, 3, 4 and 5.
|
N/A
|
3.0 |
2.0 |
|
9 &11 |
V- ALTERNATIVE SPECIFICATIONS FOR THE MINCER EQUATION
|
CHISWICK, B. (2003), “Jacob Mincer, Experience and the Distribution of Earnings,” Review of Economics of the Household, 1(4), 343-361. LEMIEUX, T. (2006), “The Mincer Equation: Thirty Years after Schooling, Experience, and Earnings,” in S. Grossbard (ed.), Jacob Mincer: A Pioneer in Labor Economics, NY: Springer Science, 127-145. * ASHENFELTER, O. and A. KRUEGER (1994), "Estimates of the Economic Return to Schooling from a New Sample of Twins," American Economic Review, 84(5), 1157-1173. * ASHENFELTER, O. and C. Rouse (1998), “Income and Ability: Evidence from a New Sample of Identical Twins,” Quarterly Journal of Economics, 113(1), 253-269. |
N/A
|
3.0 |
1.5 |
|
10 |
FLEXIBLE SUPPLEMNTAL INSTRUCTION WEEK
|
Homework Assignment
|
N/A
|
N/A |
N/A |
| 12 | VI- Schooling as Human Capital or a Signal |
*** KROCH, E. A. and K. SJOBLOM (1994), “Schooling as Human Capital or a Signal: Some Evidence,” Journal of Human Resources, 9(1), 156-180.
|
N/A |
3.0 |
|
|
13 |
VII- INVESTMENT IN POST-SCHOOLING SKILLS: GENERAL vs. FIRM-SPECIFIC EXPERIENCE (TENURE)
|
* 江豐富（2016），「台灣現職工作期間之存續分析－兼具加速失敗時間與比例風險計量的 Weibull 分析」，〈台灣經 濟預測與政策〉，47(1)，69-106。 * ABRAHAM, K. and H. Farber (1987), "Job Duration, Seniority, and Earnings", American Economic Review, 77(3), 278-297. * HASHIMOTO, M. (1981), "Firm Specific Human Capital as a Shared Investment," American Economic Review, 71(3), 475-482. * HASHIMOTO, M. (2001), "Firm-Specific Human Capital as a Shared Investment: Reply,” American Economic Review, 91 (1), 348-49. HUTCHENS, R. (1989), "Seniority, Wages and Productivity: A Turbulent Decade," Journal of Economic Perspectives, 3(4), 49-64. |
N/A
|
3.0 |
2.0 |
|
14-15 |
VIII- SELF-SELECTION, LATENT DECISION EQUATION, SAMPLE SELECTION BIAS, INVERSE-MILLS'S RATIO and THE ESTIMATION OF MINCER'S EARNINGS EQUATION
|
* 江豐富（2020），「臺灣就業和非就業之多元選擇、工資式的一般化兩階段估計、與樣本選擇偏誤成因」，〈台灣經濟預測與政策〉，50 (2)，45-95。 江豐富 (2018)，「台灣各就業與非就業部門之多元 LOGIT分析 – 各就業部門工資式之選擇偏誤」，IEAS Working Paper, No. 18-A004，中央研究院經濟研究所。 * 江豐富（2011），「失業和非典型就業的人口組成與工資率分析」，〈台灣經濟預測與政策〉，42(1)，75-118。 * 江豐富（2006），「外勞引進對本國勞工失業、職業選擇及薪資之影響」，〈台灣經濟預測與政策〉，37(1)，69-111。 * Heckman, J, (1979), “Sample Selection Bias as a Specification Error,” Econometrica, 47(1), 153-61. |
RUN THE REGRESSION
|
3.03.0 |
2.0 |
| 16-17 | IX- OCCUPATIONAL AND INTERNATIONAL MIGRATION CHOICES |
* Roy, A. D. (1951), “Some Thoughts on the Distribution of Earnings,” Oxford Economic Papers, 3(2), 135-146.
B. Honoré (1990), “The Empirical Content of the Roy Model,” Econometrica, 58(5), 1121-1149. * WILLIS, R. and S. Rosen (1979), "Education and Self-Selection," Journal of Political Economy, 87(5-2), S7-S36. |
N/A | 3.0 | 2.0 |
| 18 | FLEXIBLE SUPPLEMNTAL INSTRUCTION WEEK | Homework Assignment | N/A | N/A | N/A |
Two periodic comprehensive homeworks, mid-term (40%) and final (40%), are required, the problem sets of which are drawn from the lecture notes of the class.
<參考書目>
Students without prior experience in an undergraduate course in labor economics are advised to refer to the relevant sections of an advanced undergraduate textbook like:
1- Borjas, G. (2016), Labor Economics, 7th ed., NewYork: Mcgraw-HillEducaton. (華泰文化, 劉朝棟先生, Email: sales1@hwatai.com.tw, Cell: 0935-286-372.)
2- Ehrenberg, R. and R. Smith, Modern Labor Economics: Theory and Public Policy, various editions, Glenview, IL: Scott, Foresman and Co.