Rural unemployment, the problems which it generates and strategies to reduce it: a case-study from rural Turkey
New Medit, vol 11, n.2, (June 2012), pp. 50-57
Jel classification: Q18, O18, E24
Rural unemployment is on top of the unsolved problems of developing nations; so far there have been no significant developments towards its solution. The importance of the present work is to show the causes and effects of unemployment experienced in rural areas, and to give suggestions for its solution. An evaluation was made of the reasons for rural unemployment by means of empirical analysis at micro- and macro-level. The macro-level analysis was based on data from the Turkish Statistical Institute for the period 1989-2006. In this analysis, the causal relationship between rural unemployment and national and urban unemployment levels, GNP, and rates of growth in the agricultural, industrial and service sectors is investigated by time series analysis. The results showed a uni-directional causal relationship towards rural unemployment between urban and rural unemployment, and between national and rural unemployment. The micro-level analysis was performed with data obtained from a survey carried out in 2007. In micro-analysis, the factors influencing rural unemployment were estimated by the probit analysis model. According to the results obtained, the reasons for increasing rural unemployment were found in the size of households, longer distance between villages and the provincial capital, and poor income and social security. It is thought that this study, taking Turkey as an example for the problems and suggested solutions of rural unemployment, can serve as a guide for similar studies in other countries.
unemployment, employment,Granger Causality Tests, Probit