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Business Economics

Course Description:

The course examines concepts of the labor market and factors affecting the market particularly in Saudi Arabia. The course aims to develop students' ability to link the labor market to other economic variables and to enhance the students awareness of the concepts of wage policies and their economic consequences. Course topics include introduction to labor economics, demand for labor in the short and long term, supply of labor, equilibrium of the labor market, investment in human capital, differences in wages in labor markets, and labor market and macroeconomics.


Topics to be Covered
List of Topics

No. of


Contact hours
Introduction to labor economics, basic concepts13

Demand for Labor in the short term

-          Marginal productivity of labor,

-          value of marginal productivity

-          demand curve for labor in the short term.


Demand for labor in the long term

-          The demand curve for labor in the long term

-          Difference between the demand curve of employment in long and short term.


The Basic Model

-          Hypothesis of the model,

-          Industry demand and market demand

-          Applications of the basic models


Labor Supply

-          The individual labor supply curve

-          Market supply


Equilibrium of the labor market

-          Determinants of elasticity of demand for labor, Wages, prices and productivity

-          Number of population and the equilibrium of the labor market

-          The impact of the change in the capital and the technological level of employment.


Difference in salaries in perfect competition markets.

-          Investment in human resources,

-          Investment and consumption,

-          Investment in education,

-          Job training (from the viewpoint of business),

-          General and special training,

-          Temporary wages and the differences in salaries due to the presence costs of research and information.


Differences in wages and employment as the result of imperfect competition

-          The impact of the monopoly on employment and Wages and employment in the public sector.


Macroeconomics and the labor market

-          Unemployment and fully employment,

-          Types of unemployment and their causes

-          Proposed solution to unemployment.

Wages, employment and regulation13
The labor market and income distribution.13
Group Presentations26


Revision & Preparation for Final Examination







5. Schedule of Assessment Tasks for Students During the Semester


 Assessment task (i.e., essay, test, quizzes, group project, examination, speech, oral presentation, etc.)Week DueProportion of Total Assessment
1Individual exercises & activities Ongoing, End of Semester20%
2Mid-termWeek 1020%
3Group Research Project (written and oral presentation)End of Semester20%
4Final ExamEnd of Semester40%


1. List Required Textbooks


Borjas, G.J., (2013), " Labor Economics" McGraw Hill.


2. List Essential References Materials (Journals, Reports, etc.)


-           Ehrenberg, R.G. (2008) “ Modern labor Economic: Theory and public policy (10th edition), Addison Wesley

-           Journal of labor Economics

-           ILO Reports

-           Ministry of Labor annual reports in KSA-​​