LABOR ECONOMICS - ECON. 320 (1)
2014 WINTER
Class Meeting Location
Class Meeting Times
ENG Z15
TH,TU
Instructor
Office Hours
Office Location
Office Phone
Email
Web Address
BURC KAYAHAN
TU and THU 11:30-12:30
Number of Credits
ETCS Credit
Prerequisites
Language
3
5
(ECON. 201 and ECON. 311 ) or consent of the instructor
English
ckayahan@acadiau.ca
Assistant
Office Hours
Office Location
Course Description
This course introduces students to the economics of labour markets. The goal is to present the basic
theoretical tools of modern labour economics that are built around the neo-classical model of labour
supply and demand, and to apply these tools to the study of employment and earnings. By combining
theory and empirical evidence we learn how to address issues like what makes some people earn more
than others, what causes unemployment, what are the labour market effects of immigration, how do
public policy affect wages and unemployment, or to what extent does the investment in education pay
off.
Course Objectives
The main goal of this course is to give the students a basic understanding of the fundamentals of
labour market theory (supply, demand, unemployment). The theoretical content will be
complemented by empirical facts and figures to give the students an overall understanding of the facts
observed in Turkey. Few models that will be covered in this course will enable the students to answer
key and relevant empirical questions that shape up the modern labour market policy. Data from
Turkey and International markets will be used to assess the relevance of theoretical predictions.
Limitations of thoretical models, and methods for improving them will be discussed with the help of
real world examples.
Learning Outcomes
Apply intermediate level economic theory to analyze the logic behind labor market outcomes.
Understand the information content and limitations of labor market indicators.
Use the TURKSTAT website to keep track of relevant statistics.
Follow policy debates concerning the labor market.
Teaching Methods
Lectures are broken down into teaching, problem solving and discussion segments. Material in the
textbook will be complemented by handouts and supplementary readings. Exercises will be assigned
to help students develop analytical skills.
Course Contents
Session
Number
1
Starting
Date
04/02/2013
1
06/02/2013
1
11/02/2013
3
13/02/2013
2
25/02/2013
1
04/03/2013
2
06/03/2013
3
18/03/2013
3
01/04/2013
2
2
2
3
10/04/2013
17/04/2013
24/04/2013
06/05/2013
Topics
Introduce course content, objectives and go over syllabus
Chapter 1: Prodvide an introduction to Labour Economics, illustrate
the subject matter of labour economics with examples
Chapter 2 - P1: Stylized facts about labour suppy from the USA and
Turkey
Chapter 2 - P2: Standard model of labour supply;
Worker
preferences, time and budget constraints; Detailed analysis of hours
of work and participation decisions.
Chapter 2 - P3: Female Labour Supply. Role of wages, non-labour
income, fertility. Market vs. non-market work. A model of fertility.
Chapter 2 - P4: Labour supply over the lifecycle; Discouraged worker
and added worker effects; Policy Application
Chapter 3: Demand for Labour in the SR & LR; Elasticity of
Substitution, Policy Application
Chapter 4: Labour market equilibrium (Competitive vs Noncompetitive markets); Minimum wages and unemployment; Payroll
Taxes
Chapter 5: Human Capital; Schooling model vs Signalling, On the job
training, Policy Application
Chapter 7: Wage structure. Earnings Inequality, Policy Application
Chapter 8: Labour mobility. Migration and job turnover.
Chapter 12: Unemployment. Search and labor market dynamics.
Chapter 9: Labour market discrimination; Seggregation
Assessment Methods
Type
Quizzes
Midterm Test
Final Exam
Total
Description
Two in-class quizzes, one before each exam
Written in class exam.
Written comprehensive final exam.
Final Grade %
30
30
40
100
Workload Breakdown
Type
Lecture
Exam
Exam
Exam
Independent Study
Total
Description
Lectures
Quizzes
Midterm Exam
Final Exam
Textbook and supplementary readings
Final Grade %
30
30
20
40
40
160
Sources
Links



TURKSTAT web site: http://www.turkstat.gov.tr/
HLFS data base: http://www.turkstat.gov.tr/PreTablo.do?tb_id=25&ust_id=8
WDI data base: http://data.worldbank.org/data-catalog/
Required Readings
 Posted on the course web page and stored under course folder as the course progresses.
Required TextBooks
 George Borjas, Labor Economics, 6th Edition, McGraw Hill, 2012.
Other
N/A
Academic Dishonesty
Honesty and trust are important to all of us as individuals. Students and faculty adhere to the
following principles of academic honesty at Koç University:
1. Individual accountability for all individual work, written or oral. Copying from others or providing
answers or information, written or oral, to others is cheating.
2. Providing proper acknowledgement of original author. Copying from another student's paper or
from another text without written acknowledgement is plagiarism.
3. Study or project group activity is effective and authorized teamwork. Unauthorized help from
another person or having someone else write one's paper or assignment is collusion.
Cheating, plagiarism, and collusion are serious offences resulting in an F grade and disciplinary
action.