As we go through the course, you will be expected to apply the material to a labor market analysis of your college major (or a major you are considering). You should weigh all of the costs (including opportunity costs) and all of the benefits of choosing your major (monetary and on monetary).
In this discussion, you should include (but not limited to) an analysis of the total monetary cost of your degree (student loans, forgone wages, etc.) and the total monetary benefits (your total expected wages over a career) – in present value terms. You may want to discuss how long it will take you to pay back any loans. You should talk about the idea of your own comparative advantage and how you envision this major will lead to a career and how you and your job will fit into the larger economy (think about our discussions of trade and the circular flow diagram). You should include a discussion of a firm’s decision to hire you (think about the firm weighing the
benefits and their costs).
How will your major help you get hired by a firm (of if applicable, how will it help you start your own business)? You will also need to discuss the demand curve associated with your major (and career) – including all of the factors that may be incorporated into this demand curve (think about any factors that shift the demand curve – productivity, price of the product produced, and the derived demand curve aspect – the demand for the output of this industry).
You will need to discuss the supply of major and the labor supply curve of your industry/career- including all of the factors that may be incorporated into this supply curve (think about any factors that shift the supply curve – the desirability of this major, tastes for the career, etc.). Finally, you will need to discuss expected equilibrium wages (the intersection of the supply and demand curve) and consider any contributing factors that you expect will either increase (or decrease) your expected wages (minimums wage, compensating differentials, signaling theory, etc.).
NOTE: Throughout your analysis you must find concrete evidence backing up your analysis. This may include (but is not limited to) data on expected wages, the number of majors, starting salaries, expected wage growth, location, calculations on expected present value, number of people in your industry, labor market trends over time for your industry (wages, employment, unemployment, demographics associated with the industry such as gender and race composition). This information will likely need to be conveyed in graphs and charts. You may also want to gather University of Akron specific data on the number of majors and Akron specific statistics on the number of job openings or number of people in your desired industry.
Your paper should have a title, introduction, and conclusion. You should use proper spelling and grammar. Your paper should be approximately 1-2 pages typed (Times New Roman 12 pt. font double spaced) not including any graphs, charts, figures, and references. Please follow an APA format. Citations within the text should be in the format (Author, Year) at the end of a sentence and a corresponding reference in APA format at the end of the paper for all data sources, articles, and other sources of information.