Publication: Journal of Economic Education
Volume: Volume 27, No. 4
Issue: Fall 1996
Pages: 300-308
Author(s): Michael J. Haupert (University of Wisconsin)
Address (Principal Author):Michael J. Haupert, Economics Department, University of Wisconsin, 413 North Hall, La Crosse, WI 54601, (608) 785-8099
Internet Address (Principal Author):
Title: Labor Market Experiment
Abstract: This is an experiment used in my principles of macroeconomics courses to introduce the students to labor markets and the economics of job searching. The experiment is simple to run and can be completed in a 55 minute class period. The experiment involves placing students in a hypothetical job market in which they search for jobs paying wages in a known range, but with an unknown distribution of wages within that range. Several different trials may be run, changing variables to allow for search costs, unemployment insurance, recessions, and investment in human capital.