https://quizplus.com/study-set/2387
Empirical Methods in Labor Economics
Exam Preparation Guide
Course Introduction
This course provides an in-depth exploration of the empirical strategies used to analyze labor market phenomena. Students will learn to critically assess and apply econometric techniques such as regression analysis, natural experiments, instrumental variables, difference-in-differences, and panel data methods. Emphasis is placed on the identification of causal relationships in topics like wage determination, employment dynamics, education, discrimination, and policy evaluation. Through hands-on assignments using real-world datasets, students will gain practical experience in framing research questions, designing empirical studies, and interpreting results within the context of labor economics.
Recommended Textbook Labor Economics 7th Edition by George J Borjas
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12 Chapters
360 Verified Questions
360 Flashcards
Source URL: https://quizplus.com/study-set/2387 Page 2
Chapter 1: Introduction to Labor Economics
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/47424
Sample Questions
Q1) What type of questions cannot be answered with theory or facts alone?
A)Normative questions.
B)Positive questions.
C)Factual questions.
D)Empirical questions.
E)Econometric questions.
Answer: A
Q2) When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates
A)the average wage.
B)the average logged wage.
C)the average years of schooling.
D)the economic return to each additional year of schooling measured in dollars.
E)the economic return to each additional year of schooling measured in percentage terms.
Answer: E
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Chapter 2: Labor Supply
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/47425
Sample Questions
Q1) What is the added worker effect?
A)A secondary worker enters the labor force when the wage rate is high.
B)A secondary worker enters the labor force when his or her consumption of goods exceeds his or her non-labor income.
C)A secondary worker enters the labor force when his or her household productivity decreases.
D)A secondary worker enters the labor force when he or she no longer must allocate time to household production.
E)A secondary worker enters the labor force when the main worker in the household has lost his or her job or has experienced a wage cut.
Answer: E
Q2) The intertemporal substitution hypothesis suggests that hours of work should
A)be greatest during peak wage years.
B)steadily increase with age.
C)steadily decrease with age.
D)be greater for women than for men.
E)increase during retirement.
Answer: A
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Chapter 3: Labor Demand
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/47426
Sample Questions
Q1) If the minimum wage applies to one sector (the covered sector) but not another sector (the uncovered sector), an increase in the minimum wage in the covered sector is likely to result in which of the following?
A)Greater employment in the covered sector.
B)Less employment in the uncovered sector.
C)A lower wage in the covered sector.
D)A lower wage in the uncovered sector.
E)Workers willingly leaving the covered sector for the uncovered sector in search of higher wages.
Answer: D
Q2) The marginal rate of technical substitution at any particular labor-capital bundle is A)the slope of the isoquant.
B)the average product of labor relative to the average product of capital.
C)the wage relative to the cost of capital.
D)the slope of the indifference curve.
E)the ratio of labor to capital.
Answer: A
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Chapter 4: Labor Market Equilibrium
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30 Flashcards
Source URL: https://quizplus.com/quiz/47427
Sample Questions
Q1) If immigrant workers are complementary to native workers, then
A)native workers will be better off with open borders.
B)immigrant workers will receive a higher wage than native workers.
C)immigration will shift the demand for native labor to the left.
D)very few immigrants will find jobs.
E)each firm will hire only immigrants or only natives but not a mixture of the two.
Q2) If native workers and immigrants are substitutes, then
A)native workers will be better off with open borders.
B)native workers will encourage immigration.
C)native firms will discourage immigration.
D)immigrant workers will receive a higher wage than native workers.
E)immigration will shift the labor supply curve to the right.
Q3) In a noncompetitive labor market, the firm pays a wage that is less than the workers' value of marginal product because
A)the marginal cost of labor curve is above the labor supply curve.
B)the labor supply curve is above the marginal cost of labor curve.
C)labor is supplied inelastically.
D)the firm's labor demand curve is downward-sloping.
E)the firm's objective is to minimize the wage rather than to maximize profits.
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Page 6
Chapter 5: Compensating Wage Differentials
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/47428
Sample Questions
Q1) The correlation between wages and the probability of encountering a fatal injury while on the jobs can be used to calculate:
A)the value of risk.
B)the value of safety.
C)the value of life.
D)the value of injury.
E)the value of work.
Q2) The supply curve of labor to risky jobs reveals.
A)how many workers are willing to offer their labor to the risky job as a function of the wage differential between the risky job and the safe job.
B)how many workers are willing to offer their labor to the risky job as a function of the wage paid to workers of the risky job.
C)how many workers are willing to offer their labor to the safe job as a function of the wage paid to workers of the risky job.
D)the number of workers who dislike risky jobs.
E)the fraction of workers who dislike risky jobs.
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Chapter 6: Human Capital
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30 Flashcards
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Sample Questions
Q1) Labor force participation rates tend to
A)increase with education level for both men and women.
B)decrease with education level for both men and women.
C)decrease with education level for men but increase with education level for women.
D)be unrelated to education level for both men and women.
E)be unrelated to education level for men but increase with education level for women.
Q2) Which statement about human capital is false?
A)Human capital gives firms a way to differentiate between workers.
B)Workers accumulate human capital during formal education and through life experiences.
C)There is more human capital in the U.S. now than there was 100 years ago.
D)Human capital has a low rate of return.
E)Human capital tends to be an important determinant of one's wages.
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8
Chapter 7: The Wage Structure
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30 Flashcards
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Sample Questions
Q1) In the United States, the wealthiest 10 percent of households earn approximately what share of total income?
A)5%
B)10%
C)30%
D)50%
E)80%
Q2) Which of the following statements regarding the increase in supply of high-skill labor in the United States since 1960 as measured by education level is not true?
A)The percent of workers without a high school degree has fallen dramatically since 1960.
B)The percent of workers with a high school degree has fallen dramatically since 1960.
C)The percent of workers with a college degree has increased dramatically since 1960. D)The percent of workers with an advanced degree has increased dramatically since 1960.
E)The supply of highly-skilled women to the workforce has increased dramatically since 1960.
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Page 9
Chapter 8: Labor Mobility
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/47431
Sample Questions
Q1) The human capital externality refers to
A)an additional tax placed on institutions of higher learning.
B)the government's subsidization of institutions of higher learning.
C)the quality of the environment in which one lives.
D)the cohort affect from selection bias.
E)the environmental costs associated with rapid population growth.
Q2) Which of the following regarding internal migration in the United States is not true?
A)Migration is more common among younger workers compared to older workers.
B)Migration is more common among educated workers compared to uneducated workers.
C)Migration equalizes wages across regions.
D)Empirically the mystery is why there is not more internal migration, not why there is not less.
E)Repeat and return migration are rational decisions and routinely occur.
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10
Chapter 9: Labor Market Discrimination
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30 Flashcards
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Sample Questions
Q1) A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's score on the test. The firm then pays the new worker a wage of w = 0.6T + 0.4G where G is the average test score for the worker's gender-16 for women; 12 for men. How much more is a woman paid than a man when both scored a 10 on the test?
A)$0.20
B)$0.40
C)$0.80
D)$1.60
E)$3.20
Q2) Customer discrimination results in
A)lower wages for the discriminated-against worker group.
B)a lower output price regardless of who the firm hires.
C)a segregated workforce.
D)lower firm profits.
E)all of these are results of customer discrimination.
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11
Chapter 10: Labor Unions
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30 Flashcards
Source URL: https://quizplus.com/quiz/47433
Sample Questions
Q1) Right- to-work laws
A)give workers the right to be represented by a union.
B)give workers the right to not join a union.
C)give a non-union worker the right to enjoy union benefits without paying union dues.
D)give firms the right to hire replacement labor when the union strikes.
E)give the firm the right to permanently fire anyone who strikes.
Q2) A union will be more successful at forming when the firm's labor demand curve is inelastic, because under these conditions the union organizers can "promise"
A)low union dues.
B)small wage losses but large employment gains.
C)small wage gains and minimal employment losses.
D)large wage gains and large employment gains.
E)large wage gains with minimal employment losses.
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Chapter 11: Incentive Pay
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Sample Questions
Q1) A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As a result, firm profits increase and there is a pool of involuntarily unemployed workers. In this model, if the firm's cost of monitoring effort falls,
A)the efficiency wage will fall.
B)the number of shirking workers will fall.
C)firm profits will fall.
D)the firm will increase its number of factory managers.
E)the pool of involuntarily unemployed workers will increase.
Q2) Which is not true regarding a delayed-compensation contract?
A)A delayed-compensation contract discourages workers from shirking.
B)A delayed-compensation contract decreases employee turnover within the firm.
C)An effective delayed-compensation contract requires a mandatory retirement age.
D)A delayed-compensation contract necessarily costs more in labor costs than a time-rate system.
E)A delayed-compensation contract is associated with an upward-sloping age-earnings profile.
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Chapter 12: Unemployment
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Sample Questions
Q1) What is the general relationship between race and unemployment rates in the United States?
A)Whites have the lowest rate of unemployment; Hispanics have the highest rate of unemployment.
B)Whites have the lowest rate of unemployment; blacks have the highest rate of unemployment.
C)Hispanics have the lowest rate of unemployment; whites have the highest rate of unemployment.
D)Hispanics have the lowest rate of unemployment; blacks have the highest rate of unemployment.
E)Blacks have the lowest rate of unemployment; Hispanics have the highest rate of unemployment.
Q2) From 1980 through 2005, unemployment rates have been _________ in Europe relative to in United States.
A)higher
B)lower
C)about the same
D)unpredictable
E)adjusting
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Page 14