DOES SPATIAL RELATIONS AFFECT UNEMPLOYMENT? EXAMPLE OF PROVINCES IN TURKEY

Abstract

Unemployment is a serious problem that must be prevented for an economy at regional as well as national level. In this study, it is aimed to examine the regional clustering patterns of the province and province groupings of the unemployment rate within the scope of Level-3 in Turkey and to determine the parameters that have an effect on the unemployment rate. In this context, the spatial econometric method was used in the study. According to the analysis findings, the existence of a spatial relationship between eighty-one provinces was determined. In the study, the spatial distribution of the explanatory variable was examined and it was observed that the unemployment rate clustered intensively in the Eastern Anatolia and Southeastern Anatolia regions of Turkey. In this context, the spatial lag model was accepted according to the test results. When the explanatory variables in the model are examined, statistically significant and negative correlations were found between the male labor force participation rate, female labor force participation rate and the share of employment in the agricultural sector in the direction of reducing unemployment. The variable of educated population ratio did not have an effect on reducing unemployment.