# ECON4715-2014H.pdf - UNIVERSITY OF OSLO DEPARTMENT OF...

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UNIVERSITY OF OSLODEPARTMENT OF ECONOMICSExam:ECON4715Labor EconomicsDate of exam: Thursday, November 27, 2014Grades are given: December 18, 2014Time for exam: 09.00 a.m.12.00 noonThe problem set covers 6 pages (incl. cover sheet)Resources allowed:No resources allowed (except if you have been granted use of a dictionary from theFaculty of Social Sciences)The grades given: A-F, with A as the best and E as the weakest passing grade.F is fail.
Final Exam ECON4715 – Labour economicsThis exam has 5 questions, with in total 17 sub-questions.When answering the questions on the exam you should be brief and to the point!Make sure to write clearly. Difficult to decipher answers will not be counted!1.In this question you have to indicate whether you think the statement is true or falseand explain why. You do not get any points if you only state whether the statementis true or false.(a)A decline in the importance of unions is expected to increase the skill wagedifferential.(b)Statistical discrimination arises because employers get disutility from hiringminority workers.(c)If the rate of return to skills is higher in the source country than in thedestination country, high skilled workers are more likely to migrate to thedestination country than low skilled workers.(d)Use the information in the following Table that shows the productivity andcost of schooling for high- and low-productivity workers.
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2. The theory of compensating wage differentials(a)Draw two indifference curves in Probability of Injury (x-axis) versus Wage(y-axis) space, for two individuals where one is more risk averse than the otherbut who are otherwise identical (explain the shape of the indifference curvesand which one is which).(b)Draw an iso-profit curve in Probability of Injury (x-axis) versus Wage (y-axis)space, and explain its shape.(c)Illustrate the wage and job characteristics the two workers in (a) will end upwith in equilibrium. Explain the intuition of the outcome.3.This question is about: Hunt, J. (1999). Has Work-Sharing Worked In Germany?Quarterly Journal of Economics 114(1). pp. 117-148Hunt is interested in how a standard hours reduction (contractual number of hoursper week given wages) affects firms’ labor demand.(a)Suppose that for every hour worked an employee is payed a wagewup tostandard hourshs, and overtime wagewo= (1 +p)w > wfor hours workedbeyond that. Assume furthermore that there are fixed costFinvolved in hiring.

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Term
Winter
Professor
NoProfessor
Tags
Labour economics, Niederle, Guido Imbens