ECONOMICS AND FINANCE
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
ECO4512	Labor Economics	Spring	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Hybrid
Course Coordinator :	Dr. Öğr. Üyesi GÖKHAN ŞAHİN GÜNEŞ
Recommended Optional Program Components:	None
Course Objectives:	To provide a solid understanding of labor market dynamics with a special focus on the labor market in Turkey.

Learning Outcomes

The students who have succeeded in this course;
1. Learning basic statistics to analyze labor market,
2. Analyzing labor demand function,
3. Analyzing labor demand under competitive conditions,
4. Calculating and interpreting wage and cross-wage elasticities,
5. Determining the impacts of labor market frictions on market equilibrium,
6. Determining labor market frictions on both firm and worker,
7. Analyzing labor supply function ,
8. Analyzing the impacts of alternative labor market and social policies on labor supply,
9. Augmenting the basic labor supply model with household decision making models,
10. Analyzing the models in which household is a unit and how household bargaining models handles labor supply.

Course Content

This course will analyze the labor market dynamics, labor market equilibrium in perfect competition as well as extensions under various frictions, with a special focus on the labor market in Turkey.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Overview of the labor market. Definitions and how the labor markets work
2)	Labor market in Turkey
3)	Demand for labor: Profit maximization and competitive markets
4)	Demand for labor: Short run vs. long run
5)	Own wage elasticity of labor demand
6)	Cross wage elasticity of labor demand
8)	Frictions on the employee side in the labor market: Monopsonic labor markets
9)	Frictions on the employer side in the labor market: Quasi-fixed costs
10)	Supply of labor to the economy: The decision to work
11)	The effects of welfare policies, income maintenance programs and taxes on labor supply
12)	Labor supply: Household production
13)	Joint labor supply decisions within the household
14)	Dynamic labor supply: Life cycle

Sources

Course Notes / Textbooks:	Modern Labor Economics by Ehrenberg and Smith, Pearson Education, 10th Edition, 2009.
References:

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Attendance	14	% 10
Project	1	% 20
Midterms	1	% 30
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 40
PERCENTAGE OF FINAL WORK		% 60
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Workload
Course Hours	16	48
Study Hours Out of Class	16	48
Homework Assignments	2	6
Midterms	1	3
Final	1	3
Total Workload		108

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works.	4
2)	Understand the common as well as distinctive characters of the markets, industries, market regulations and policies.	5
3)	Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events.	2
4)	Analyze the interventions of politics to the economics and vice versa.	4
5)	Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches.	4
6)	Understand current and new economic events and how the new approaches to the economics are formed and evaluating.	4
7)	Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form.	3
8)	Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence.	1
9)	Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments.	4
10)	Understand the information and changes related to the economy by using a foreign language and communicate with colleagues.	3