Econ 151

PS5

Due Tuesday August 11

Immigration, Unions, Inequality

Econ 151, Prof. Garret Christensen, UC Berkeley

DUE Tuesday August 11 before class, submitted via bCourse. Please do your best to put all
your answers in the appropriate direct order, so that it can be graded without flipping back
and forth through numerous pages.
Be sure to list the names of other students in class with whom you worked.
Question 1 (5 points)
Watch one of the following films:
On the Waterfront
Norma Rae
Harlan County USA
Roger & Me
Write one paragraph summarizing the union activity that takes place in the film, and
two paragraphs reacting to itis it accurate? Is it a fair, portrayal (whatever you think
that means)?
Let me know if you cant acquire a copy of any of these. Im just assuming that the
library/Netflix/the Internet makes watching any movie you want a breeze these days.
Note that the last movie, by Michael Moore, might not have much union material, but
its still definitely appropriate for a labor economics classjust pick the most relevant
topic covered in class to respond to.
Question 2 (1 point)
Chapter 12 Review Question 8
Question 3 (1 point)
Chapter 12 Problem 8
Question 4 (1 point)
Chapter 13 Review Question 6 (Read the Effects of Unions section beginning on pg.
472)
Question 5 (1 point)
Chapter 13 Problem 6
Question 6 (1 point)
Chapter 15 Review Question 8
Question 7 (4 points)
(a) (1 point) Define skill-biased technical change. (Also called skill-biased technological
change. Same thing.)

(b) (1 point) Explain how some believe that SBTC has led to the increased inequality
of wages in the US in recent decades. Read the Mankiw article in the Journal of
Economic Perspectives on the syllabus for one explanation; also see textbook.
(c) (1 point) Read the abstract, introduction, and conclusion to John DiNardo and
Jorn-Steffen Pischkes paper The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure too? in the February 1997 Quarterly Journal of
Economics. Explain what they find. What does this paper seem to imply about
SBTC as a source of wage inequality?
(d) (1 point) What do you, personally, think is the source of increased inequality in
recent decades? How much do you buy SBTC as an explanatory factor?
Question 8 (2 points)
(a) (1 point) In one or two sentences each, summarize the results of (1) H. Gregg Lewis
work (see pg. 484-485 of the text), (2) Lee and DiNardos paper (see syllabus), and
(3) Lee and Mas paper (see syllabus). (You dont need to read them to understand
the design, just to see the basic results.)
(b) (1 point) Is it possible for all these estimates to be correct at the same time? If
so, explain how these seemingly somewhat contradictory results could in fact all be
true.
Question 9 (4 points)
Im tempted to ask you a question like Briefly describe the empirical strategy of any
paper on immigration that is either (a) mentioned in your textbook, (b) listed on the
syllabus (but not Cards Mariel boatlift paper) or (c) cited in the New York Times
Magazine article. Discuss how the author addresses the concern of omitted variable
bias. What do the authors find to be the effect of low-skilled immigration on the wages
of low-skilled natives? But instead of asking that now, Ill give you a breather, since
you already have to look up a bunch of other articles for this assignment. Four free
points.
Please bring your computer (or tabletwhatever you can type on) to class on
Wednesday August 12. You will complete anonymous online course
evaluations. I sincerely appreciate constructive feedback.

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