Investigating The Effect of Differences in The Economic Structure of Regions on Employment Differences Between Regions: Spatial Structural Decomposition Analysis

Document Type : Original Article

Authors

1 Department of Economics, University of Sistan and Baluchestan

2 department of economics, University of Sistan and Baluchestan

10.48308/jem.2024.236217.1930

Abstract

The purpose of this study is to investigate the effect of the difference in the structure of the economy between different provinces of the country with the average of the country on the difference of employment among the regions. For this purpose, the technique of spatial structural decomposition analysis has been used in the input-output model between the two regions and the effect of three factors of difference in the technological structure of production or inter-sectoral relations, the difference in employment coefficients (employment per unit of production) and final demand on the difference in employment in different regions. The results of the study have shown that the effect of the difference in the final demand of the regions has a greater contribution (absolute value) in the employment difference except the regions of Kerman, West Azerbaijan, Bushehr, Hormozgan, Gilan and Alborz. The difference in the final demand has a positive effect in 8 provinces and a negative effect in 23 provinces. Tehran province has experienced the most positive effect and Chahar Mahal Bakhtiari province has experienced the most negative effect compared to the country's average. The effect of difference in employment coefficients is positive in 22 provinces and negative in 9 other provinces. Inter-sectoral relations have been positive in 7 provinces and have caused more employment in these provinces than the average of the country. The most positive effect of all three factors is in sector of "other industries".

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