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Regional Unemployment Disparities in Turkey

Author

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  • Mehmet Güçlü

    (Ege University, Department of Economics and Administrative Sciences, Turkey.)

Abstract

The aim of this study is to analyze the reasons of unemployment disparities among 26 NUTS-2 regions in Turkey for the period 2004-2013. To that end, spatial panel econometrics is employed. It is empirically proven that the determinants of the regional unemployment disparities are labor force participation rate, young population, industrial mix and educational attainment. Further, it is detected that there is a spatial dependence (spatial autocorrelation) among the regions. In other words, it is discovered that an increase in unemployment rate in a region also affects the unemployment rates of neighboring regions. Spillover effects of independent variables are also estimated. Hereby, the impacts of factors, which determine unemployment in a region, both on that region and neighboring regions are obtained individually.

Suggested Citation

  • Mehmet Güçlü, 2017. "Regional Unemployment Disparities in Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 94-108, June.
    • Handle: RePEc:rjr:romjef:v::y:2017:i:2:p:94-108
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    regional unemployment; spatial panel econometrics; spatial autocorrelation; spillover effects;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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