To work or not to work ... that is the question: A classroom experiment on how the labour market operates
This paper presents a simple classroom experiment that helps students make economic decisions about participation in the labour market. The students are designated as workers and are given information about their skill endowments, marginal productivities and opportunity costs. The lecturer, who is the designated sole employer in this experiment, offers appropriate wage rates to the workers, knowing the workersÕ marginal productivities and the price at which output can be sold. The experiment is run for a number of periods, each period representing different conditions in the labour market, e.g., a minimum wage law is mandated by the government. During each period, the students (workers) must decide whether or not to offer their labour services based on the information they have at hand.
|Date of creation:||Jan 2008|
|Date of revision:||Jan 2008|
|Contact details of provider:|| Postal: |
Phone: +64 3 479 8725
Fax: 64 3 479 8171
Web page: http://www.business.otago.ac.nz/econ
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William E. Becker & Michael Watts, 2001. "Teaching Methods in U.S. Undergraduate Economics Courses," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(3), pages 269-279, January.
When requesting a correction, please mention this item's handle: RePEc:otg:wpaper:0802. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Janet Bryant)
If references are entirely missing, you can add them using this form.