E341 Chapter 8: Labor Mobility (Plus Immigration from Chapter 4)
4-5: Policy Application: The Labor Market Impact of Immigration (Pg. 167)
o Figure 4-10, pg. 168
The simplest model of immigration assumes that immigrants and natives are
E341 Spring 2016
Please word process or write neatly. Write name and ID on all pages and staple together.
Due at the beginning of class on Mon, Feb 22. Exam 1 will be given on Mon, Feb 29.
1. Suppose the labor supply curve is upward sloping and
There are 6 short-answer questions on this exam.
Neatly print your name and your IU ID number on the cover of the blue book.
Write answers neatly in a blue book. Label any diagrams completely.
Point values are indicated in parenthese
Due Wed Feb 3 at the beginning of class
Your homework paper should be word-processed or neatly hand-written. Group work on
homework is permissible, even encouraged, but the paper you hand in must be clearly your own
Due Mon, Apr 4 at the beginning of class.
1. Luck is the primary determinant of a workers earnings. True/False/Explain.
2. Alex lives for three periods. He is currently considering three education options. First, he can
start working immed
HW7 Spring 2016
Due at the beginning of class, Wed Apr 20
1. Some labor market observers, as well as some policymakers, seem to believe (1) that
minimum-wage laws have no effect on low-skill employment and (2) that immigration has no
effect on the wa
E341, Spring 2016
Due at the beginning of class on Mon, Apr 11
1. Evaluate the validity of the following claim: The increasing wage gap between highly
educated and less educated workers will itself generate shifts in the labor market over the next
HW8 Spring 2016
Due Fri Apr 29 5:00 pm if you want solutions. Otherwise, you can hand in your answers at the
Reminder: Final Exam will be Mon, May 2, 2:45-4:45 PM in our regular classroom.
1. Suppose a restaurant hires only women to wait
E341 Chapter 7: The Wage Structure
The observed wage dispersion reflects two fundamentals of the labor market
There exists productivity differences among workers
the greater the productivity differences, the more unequal the wage
E341 Spring 2016
Due at the beginning of class on Monday, Mar 29. Please type or write answers neatly. Multiple
pages should be staple together.
1. Assume that workers care about two thingswages and health care. Further assume that