REGIONAL UNEMPLOYMENT DYNAMICS IN TURKEY

Hasan ENGIN DURAN

Izmir Institute of Technology, City and Regional Planning Department, Associate Professor of Economics, Gülbahce Kampüsü, Izmir Yüksek Teknoloji Ensitüsü, Mimarlık Fakültesi, Şehir ve bölge Planlama Bölümü, Urla-Izmir,  Tel: +90 232 750 70 66

enginduran@iyte.edu.tr

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

JEL classification: R11, R23, R12
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THE MACROECONOMIC IMPACT OF REGIONAL MINIMUM WAGEs: A CROSS-PROVINCE DATA EVIDENCE FROM INDONESIA

Khairul AMRI

Ph.D Student in Economic Science, Faculty of Economic and Business Syiah Kuala University Banda Aceh, Indonesia, Lecture in Faculty of Islamic Economics and Business, State Islamic University Ar-Raniry, Banda Aceh Indonesia

khairul.amri@ar-raniry.ac.id

Abstract

The main purpose of our study is to determine the causality relationship between economic growth, regional minimum wages (RMWs), unemployment rate and labor force participation rate (LFP). Using cross-section data set of 27 provinces from Indonesia for the period of 2003-2015, data analyzed using panel co-integration test, panel vector error correction model, and Granger causality test. Panel co-integration test indicates that there is a long-run relationship between the variables. In the long-run, LFP positively related to the economic growth, and negatively related to RMWs. The unemployment is positively related to both the economic growth and RMWs. In the short-run, RMWS has a significant and positive effect on economic growth. The unemployment and LFP have a negative and significant effect on RMWs. LFP has a negative and significant effect on unemployment and RMWs has a positive and significant effect on LFP. Furthermore, economic growth has a negative and significant effect on LFP. The result of Granger causality test points out that there is a bidirectional causality relationship between economic growth and RMWs and between RMWs and LFP. In addition, unemployment rate causes RMWs, and LFP causes unemployment.

Keywords: Economic growth, regional minimum wages, labor force participation, unemployment and panel vector error correction model

JEL classification: J31, O4, R23
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ILLEGAL CONSTRUCTIONS IN THE POST-MEMORANDUM GREECE Changes and constants in a chronic phenomenon

Nikolaos YOYAS

Architect NTUA, Msc Environmental Design, Urban Planning PHD Candidate

01@yio.gr

Abstract

The ¨stirring¨ of the problem of illegal constructions in Greece, during the last decade, that followed the issue of five consecutive laws regarding their integration in the country΄s official urban planning in the period 2009-2017, has led to a short-lived race of declaring and legitimizing illegal, constructions on behalf of the hundreds of thousands of popular owners. This institutional reform becomes, increasingly, significant in combination with the contemporary fiscal reform and the relevant tax burdening of realty owners. The timeless popular investment shelter of building ownership, for the first time after WWII, loses its immunity and becomes an unbearable tax weight, transforming popular illegal constructions into the national tool for transforming the country΄s real-estate map. Our ability to translate the outcome of this ¨crisis¨, through our route through all the past time, will define the quality of life in our new urban environment, but most important, our own standard of living and our future.

Keywords: Illegal constructions, urban planning, economic crisis

JEL classification: R0, R5
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