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Unveiling Regional Disparities in Unemployment: A Spatial Econometric Study of Spain

Author

Listed:
  • Ruxandra Maria Cojocaru

    (Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Maria Bianca Bolboașă

    (Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
    Vocational Training and Labour Market, Department of Education, National Scientific Research Institute for Labour and Social Protection, 010641 Bucharest, Romania)

  • Marina-Diana Agafiței

    (Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, Romania
    Vocational Training and Labour Market, Department of Education, National Scientific Research Institute for Labour and Social Protection, 010641 Bucharest, Romania)

  • Narcis Copcă

    (Management Department, Bucharest University of Economic Studies, 010374 Bucharest, Romania
    Faculty of Medicine, Carol Davila University of Medicine and Pharmacy, 020021 Bucharest, Romania
    St. Maria Clinical Hospital, 011172 Bucharest, Romania)

  • Florin Stelian Grosu

    (Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

Abstract

This present work investigates the spatial distribution of the unemployment rate in Spain, one of the European countries with the highest recorded level of unemployment. The unemployment rate reached 16% during the pandemic. For this purpose, data from 2020 were used, such as the growth rate of the number of companies and entrepreneurs, the percentage of the workforce employed in the industrial sector, and the percentage of young people aged 16–25 years. All of these data were collected at the provincial level. The importance of spatiality in unemployment estimation is proven using regressions estimated in Geoda and GeodaSpace. The results support the introduction of the lag factor in regressions, improving the performance of the OLS model. However, the use of error models was found to be inefficient. Moreover, creating local estimates of coefficients can effectively adapt to the unique spatial characteristics of Spanish provinces. The research focuses on the sustainability challenges linked to regional inequalities in unemployment. It argues that these inequalities disrupt the balanced distribution of economic activities and hinder the achievement of long-term sustainable development across Spain’s regions. Resolving these inequalities is crucial for promoting regional competitiveness and overall economic growth.

Suggested Citation

  • Ruxandra Maria Cojocaru & Maria Bianca Bolboașă & Marina-Diana Agafiței & Narcis Copcă & Florin Stelian Grosu, 2025. "Unveiling Regional Disparities in Unemployment: A Spatial Econometric Study of Spain," Sustainability, MDPI, vol. 17(3), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1270-:d:1583769
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    References listed on IDEAS

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    1. Enrique López-Bazo & Tomás del Barrio & Manuel Artis, 2002. "The regional distribution of Spanish unemployment: A spatial analysis," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 365-389.
    2. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.
    3. Verd, Joan Miquel & Barranco, Oriol & Bolíbar, Mireia, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession : what are the determinants?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-4.
    4. Paolo Mauro & Antonio Spilimbergo, 1999. "How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1-1.
    5. Enrique Lopez-Bazo & Tomas Del Barrio & Manuel Artis, 2005. "Geographical distribution of unemployment in Spain," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 305-318.
    6. Andrés Navarro-Galera & Laura Alcaide-Muñoz & María Deseada López-Subires & Manuel Pedro Rodríguez-Bolívar, 2021. "Identifying risk determinants of the financial sustainability of regional governments," Public Money & Management, Taylor & Francis Journals, vol. 41(3), pages 255-263, April.
    7. Laura Helena Kivi, 2019. "Spatial Interactions Of Regional Labour Markets In Europe," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 116, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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