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Hasan Engin Duran ()

Regional Science Inquiry, 2019, vol. XI, issue 1, 9-23

Abstract: Aim of the study is to investigate region specific causes of unemployment for Turkish 26 Nuts-2 regions between 2004-2017. We aim at contributing to the literature by analyzing (i) whether regional unemployment and sub-groups (with respect to gender, age, education) is driven by excessive labor supply or shortage of labor demand, (ii) which sub-groups have higher unemployment in regions. In terms of methodology, we employ descriptive and exploratory analyses, spatial tests and panel regressions. Our findings indicate three main results: First, there is a sizable difference in unemployment rates across regions and the dispersion is getting stronger over time. Second, there are extremely low and high unemployment rates in various sub-groups and regions. Third, changes in unemployment is mostly driven by changes in labor supply rather than demand. Among the 208 cases (26 regions x 8 sub-groups), in 154 cases, the major driver of unemployment is the excessive labor supply.

Keywords: Regional Unemployment; Labor Supply; Panel Data Regression (search for similar items in EconPapers)
JEL-codes: R11 R12 R23 (search for similar items in EconPapers)
Date: 2019
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