Due Jan. 30
1. Mary's non-labor income is $48 per week, and she can work a wage of $12 per hour.
Mary's utility function is
U(C, L) = C*(L60)
a. Find Mary's optimal consumption bundle.
b. Find Mary's optimal consumption bundle if her
Due March 2
1. Borjas, Ch. 12, Problem #1, p. 483
2. Suppose workers can either work hard or slack off. The firm is interested in getting its
workers to work hard, but since it cannot perfectly detect workers who are slacking off, i
Due March 26
In this lab you will calculate the Mincerian wage equation for men and women. Use CPS data
from March 2014.
1. Estimate two separate wage equations, one for men and one for women, using the Mincerian
wage equation on page 283
Data Lab Three
Due April 9
In this Lab you will do an Oaxaca decomposition of the black-white wage gap.
Download a CPS file from IPUMS (any date) and use it to answer the following questions.
Eliminate females from your data set, and any races ot
Lab One: A
In this lab you will reproduce some of the tables from Dora Costas The Wage and the Length of
the Work Day.
Your data file is: A Survey of 514 Male Wage-Earners in Kansas, 1895
State file name: ks11.dta
Gender: All observations are mal