Tag: R12

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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EFFECTS OF FISCAL CONSOLIDATION ON REGIONAL ECONOMICS RESILIENCE: INSTITUTIONAL DESIGN METTERS?

Christophe FEDER

Professor, University of Aosta Valley, Str. Cappuccini, 2, Aosta, Italy

c.feder1@univda.it

Vinko MUŠTRA

Assistant professor, Faculty of economics, business and tourism, University of Split, Cvite Fiskovića 5, Split, Croatia

vmustra@efst.hr

Abstract

After the Great Recession, in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover, we show that the negative effect of taxation is higher than the positive effect of public spending.

Keywords: Regional economic resilience, Fiscal consolidation, Institutions, European Union

JEL classification: R12, E62, H23, H72
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REGIONAL EMPLOYMENT IN PORTUGAL: DIFFERENCES AND CYCLICAL SYNCHRONISATION

Leonida CORREIA

Assistant Professor Department of Economy, Sociology and Management (DESG), Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD) Quinta de Prados, 5000-801 Vila Real, Portugal. Tel: +351 259 350699;

lcorreia@utad.pt

Marina ALVES

Master’s degree in Economic and Management Sciences in UTAD

alves2_marina@hotmail.com

Abstract

This paper analyses the specificities of employment in Portuguese regions at a disaggregated level of NUTS III, comparing the differences of several indicators between the last two censuses. It also examines the synchronisation of regional employment cycles over the 2000-2014 period, using the information provided for the new nomenclature of NUTS. The comparison of several employment’s characteristics (total and by sex, age group, sector of activity and main occupation) across the 7 regions and 25 sub-regions allowed us to conclude that Portugal is marked by substantial regional specificities. The analysis of the evolution of employment ‘cycles highlight the substantial reduction in the employment rate since the beginning of the 2000s, with particular intensity in the period of the recent crisis, and considerable differences across regions and at the intraregional level. The results from the synchronisation reveal a great heterogeneity in the degree of correlation between the sub-national cycles and the national cycle. Additionally, they suggest that, in general, the cyclical pattern of the sub-regions is more closely related to the regions that they belong to than that of the Portuguese cycle. The paper concludes that this heterogeneity should be addressed in the context of policy making, by means to construct appropriate responses to counteract the regional differences.

Keywords: employment, disparities, cycles, Portuguese regions

JEL classification: E32, J21, R11, R12

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