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Regional Unemployment Disparities in Turkey

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

Journal for Economic Forecasting, 2017, issue 2, 94-108

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.

Keywords: regional unemployment; spatial panel econometrics; spatial autocorrelation; spillover effects (search for similar items in EconPapers)
JEL-codes: R12 R23 C23 C33 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:rjr:romjef:v::y:2017:i:2:p:94-108