Journal of Iranian Economic Issues

Journal of Iranian Economic Issues

Regional Unemployment Disparities in Iran: Analysis of Factors and Policy Solutions Using Panel Data and the Generalized Method of Moments (GMM)

Document Type : Scientific-research

Authors
1 Department of Economics - Faculty of Economics and Management - Shahid Bahonar University of Kerman
2 Department of Economics - Baft Higher Education Complex - Shahid Bahonar University of Kerman - Kerman - Iran
10.30465/ce.2026.51977.2037
Abstract
This study employs panel data for 31 provinces of Iran from 2011 to 2021, utilizing the Generalized Method of Moments (GMM) to analyze regional disparities in unemployment rates across Iranian provinces and identify the factors influencing these disparities. The findings reveal that inequality in infrastructure expenditure and industrial distribution has a significant positive impact on regional unemployment disparities. Additionally, income inequality also exerts a significant positive effect on unemployment disparities. Furthermore, a nonlinear relationship between industrial distribution inequality and unemployment rates is observed, where increasing industrial inequality initially raises unemployment disparities, but after reaching a certain threshold, this effect reverses, leading to a reduction in unemployment disparities. On the other hand, inequality in infrastructure expenditure exhibits an inverse U-shaped nonlinear relationship, although this effect is not statistically significant. The results of this study underscore the importance of more equitable resource distribution, infrastructure development in deprived regions, encouraging investment in less developed areas, and improving access to education and skill development to reduce unemployment disparities. Moreover, the design and implementation of integrated regional development policies, along with continuous monitoring of the impact of these policies on reducing unemployment disparities, are essential.
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  • Receive Date 23 May 2025
  • Revise Date 13 August 2025
  • Accept Date 21 August 2025