Regional unemployment in Turkey

High unemployment rates are a concern for a country, existence of high regional unemployment differentials is another. Turkey has both. This paper using spatial and nonparametric techniques documents the wide regional unemployment disparities in Turkey from 1980 to 2000. Data indicate that the provincial unemployment rates are quite persistent and the gap across different regions widens even further with spatial clusters emerging across the country. The evidence indicates that human capital and demand deficiency are the sources of observed disparity across provinces. Furthermore, the sources of unemployment differentials have changed over time.