Furkan Sarikaya

Furkan Sarikaya

PhD candidate in Economics

Arizona State University

Biography

I am a Ph.D. candidate in Economics at Arizona State University. My research interests are macroeconomics, economic development, firm dynamics, and human capital formation.

In my job market paper, I study the macroeconomics of college major choices and the aggregate effects of higher education subsidies in frictional labor markets.

I will be on the job market in the 2024-2025 academic year.

Interests

  • Macroeconomics
  • Economic Development
  • Firm Dynamics
  • Human Capital Formation

Education

  • PhD in Economics, 2025 (Expected)

    Arizona State University

  • MA in Economics, 2019

    Sabanci University

  • BA in Economics, 2016

    Bogazici University

Job Market Paper

Major Choice and the Aggregate Effects of College Subsidies

I study the macroeconomic implications of college major choices in the context of a frictional labor market framework. I develop an equilibrium search model with two-sided multidimensional heterogeneity in the labor market and endogenous college and major decisions. In the model, individuals are initially sorted into college majors based on their multidimensional abilities (math, verbal, and social) and preferences, which leads to differential human capital accumulation by major across these dimensions. Firms are heterogeneous in their job requirements and create jobs endogenously. I calibrate the model using data from the NLSY79 and O*NET. I use the model to evaluate the role of college subsidies in mitigating inefficiencies arising from labor market frictions. The expenditure-neutral, welfare-maximizing subsidy scheme—which allows for differential subsidies across majors while maintaining fixed total subsidy costs—leads to a 0.5% increase in overall welfare. This policy also results in a 35% increase in the number of Science and Engineering graduates. General equilibrium effects are significant, with about one-third of output gains in the welfare-maximizing economy driven by improved job creation and reduced worker-job mismatch. These findings stand in contrast with the current practice, where higher education subsidies are largely distributed without differentiating by college major.

Working Papers

Teaching

Graduate Math Bootcamp

Instructor: Summer 2017, Summer 2018

Macroeconomic Principles

Instructor: Summer 2024

Teaching Assistant (Selected)

Macroeconomic Principles, Intermediate Macroeconomic Theory, Introduction to Econometrics, Financial Economics, Public Economics, Statistical Modelling, Money and Banking

Contact