Department of Economics

Economics 350, Spring 2022: Problem Sets

Problem Set Submission Instructions:

Please feel free to submit your problem sets in groups of up to 4 people. Write the names of all of your collaborators at the top of your problem set.
Please submit typed solutions. Number or label the question or the part of the question you are answering.
Only one person from each group needs to submit a problem set. Please submit via Canvas.

Problem Set 1

Assigned: March 30, 2022
Due: April 20, 2022
Related Resources:
- - Data:
    - NLSY Investigator
    - If you do not already have an account with NLSY, you will need to register. Approval may take a few days, so please register early! Contact the TAs if you have trouble registering.
- Papers:
  - Acemoglu, Daron and David Autor. (2011). “Skills, Tasks and Technologies: Implications for Employment and Earnings,” In: Orley Ashenfelter and David Card, (eds.), Handbook of Labor Economics, Volume 4, Part B, Chapter 12. Amsterdam: Elsevier. pp. 1043-1171.
  - Bayer, Patrick, and Kerwin Kofi Charles. (2018). “Divergent Paths: A New Perspective on Earnings Differences Between Black and White Men Since 1940.” The Quarterly Journal of Economics, 133(3):1459-1501.
  - Deming, David J. (2017). “The Growing Importance of Social Skills in the Labor Market,” Quarterly Journal of Economics, 132(4): 1593–1640.
  - Heckman, James J., and Guilherme Sedlacek. (1985). “Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-Selection in the Labor Market.” Journal of Political Economy, 93(6):1077-1125.
  - Maasoumi, Esfandiar, and Le Wang. (2019). “The Gender Gap between Earnings Distributions.” Journal of Political Economy, 127(5):2438-2504.
  - Mulligan, Casey B., and Yona Rubinstein. 2008. “Selection, Investment, and Women’s Relative Wages Over Time.” The Quarterly Journal of Economics, 123 (3):1061-1110.
- Handouts:
  - Notes on Identification of the Roy Model and the Generalized Roy Model

Problem Set 2

Assigned: April 20, 2022
Due: May 11, 2022
Related Resources:
- - Data
    - NLSY Investigator
  - Readings
    - Altonji, Joseph G., and Charles R. Pierret. (2001). “Employer Learning and Statistical Discrimination.” The Quarterly Journal of Economics, 116(1):313-350.
    - Hryshko, Dmytro. (2009). “RIP to HIP: The Data Reject Heterogenous Labor Income Profiles,” Unpublished manuscript, University of Alberta.
    - Keane, Michael P. (2011). “Labor Supply and Taxes: A Survey.” Journal of Economic Literature, 49(4):961-1075.
    - Sattinger, Michael. (1979). “Differential Rents and the Distribution of Earnings.” Oxford Economic Papers, 31(1):60-71.
    - Van Reenen, John. (2018). “Increasing Differences Between Firms: Market Power and the Macro-Economy.” CEP Discussion Paper No. 1576.

Problem Set 3

Assigned: May 11, 2022
Due: May 25, 2022
Resources
- Readings
  - Becker, Gary S., Scott Duke Kominers, Kevin M. Murphy, and Jörg L. Spenkuch. (2018). “A Theory of Intergenerational Mobility.” Journal of Political Economy,126(S1):S7-S25.
  - Chetty, Raj, and Nathaniel Hendren. (2018). “The Impacts of Neighborhoods on Intergenerational Mobility I: Childhood Exposure Effects.” Quarterly Journal of Economics, 133(3):1107-1162.
  - Chetty, Raj, and Nathaniel Hendren. (2018). “The Impacts of Neighborhoods on Intergenerational Mobility II: County-Level Estimates.” Quarterly Journal of Economics, 133(3):1163-1228.
  - Chetty, Raj, Nathaniel Hendren, Maggie R Jones, and Sonya R Porter. (2020). “Race and Economic Opportunity in the United States: an Intergenerational Perspective.” The Quarterly Journal of Economics, 135(2):711-783.
  - Cunha, Flavio and James J. Heckman (2007). “The Technology of Skill Formation,” American Economic Review, 97(2):31-47.
  - Durlauf, S. and A. Seshadri. (2018). “Understanding the Great Gatsby Curve,” In NBER Macroeconomics Annual 2017, volume 32, Martin Eichenbaum and Jonathan A. Parker, editors, pp. 333 – 393.

Final Exam

Assigned: May 31, 2022
Due: 11:59pm June 4, 2022
Requirements:
- The exam is open book. It must be written singly by each test taker. The
  exam is available May 31st morning, and it is due June 4th by 11:59pm. Be
  concise. All exams should fall within a 30-page limit with standard spacing 8
  1/2 X 11, 12-point font. Excess verbiage and regurgitation will be penalized.
  Creative dissent with the literature is strongly encouraged. Students should
  synthesize, dissect, and discuss the literature relevant to the questions below
  rather than simple summarizing the papers.
Resources
- Readings
  - Maasoumi, Esfandiar, and Le Wang. (2019). “The Gender Gap between Earnings Distributions.” Journal of Political Economy, 127(5):2438-2504.
  - Mulligan, Casey B., and Yona Rubinstein. (2008). “Selection, Investment, and Women’s Relative Wages Over Time.” The Quarterly Journal of Economics, 123(3):1061-1110.