Journal of Economics and Modelling

Journal of Economics and Modelling

Investigating the Effect of Differences in Economic Structure on Employment Differences among Provinces: Spatial Structural Decomposition Analysis Approach

Document Type : Original Article

Authors
Nastaran Boolagh 1
Ramezan Hosseinzadeh 2
1 M.A in Economics, Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran
2 Associate Professor of Economics, Faculty of Management and Economics,, University of Sistan and Baluchestan, Zahedan, Iran
10.48308/jem.2024.236217.1930
Abstract
The purpose of this study is to investigate the effect of the difference in the economic structure among 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: difference in the technological structure of production or inter-sectoral relations, the difference in employment coefficients (employment per unit of production) and final demand. 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"(All industries except food, clothing and textiles).
Keywords
Employment
Spatial Structural Analysis
Input-Output Table
Subjects
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