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|
|Introduction to labor economics, basic concepts||1||3|
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
- 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 regulation||1||3|
|The labor market and income distribution.||1||3|
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 Due||Proportion of Total Assessment|
|1||Individual exercises & activities ||Ongoing, End of Semester||20%|
|3||Group Research Project (written and oral presentation)||End of Semester||20%|
|4||Final Exam||End of Semester||40%|
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-