Analyzing the Determinants of Regional Unemployment in Turkey

OpenAlex İngilizce

Unemployment is one of the most important macroeconomic indicators for both developed and developing countries, serving as a key indicator of economic performance and social well-being. Economic crises, structural problems within economies, and regional disparities may increase unemployment. This study uses spatial econometric techniques to examine the determinants of regional unemployment in Turkey. Based on the NUTS-2 classification, 26 subregions were selected for empirical analysis for 2009-2021. The study considers income levels, general prices, education levels, youth population growth, and out-migration variables at the regional level as explanatory variables. The findings show that unemployment rates in Turkey are spatially dependent, while the random effect spatial error model results indicate that higher income levels and out-migration reduce unemployment. Conversely, general price levels, education levels, and a growing youth population increase regional unemployment rates.