14.662 S15 Labor Economics II Lecture 18

If you are interested in a general background on the economics of science, I would highly recommend Paula Stephan’s 2012 book How Economics Shapes Science. She is a real expert in this area, and the book does an excellent job of summarizing her work as well as others’ research in this area. Chapter 7 of her book covers the market for scientists and engineers. She notes that this market differs in many respects from other markets: the gestation (training) period is extremely long, the job prospects at the time of graduation are difficult to predict in advance, and aspirants often lack reliable information regarding the job outcomes of recent graduates. She argues that career decisions in this market may largely be made in the dark due to scientists’ ”love” of the subject. Below, we will discuss two empirical papers – Borjas and Doran (2012) and Stern (2004) – which explore some of these issues.