The effect of regional competitiveness operational programme on employment: an empirical assessment for the Central Anatolia of Turkey

Abstract

ABSTRACT Regional Competitiveness Operational Programme (RCOP) is one of the policies which aims to increase the competitiveness of the poorest regions of Turkey by supporting enterprises and creating employment opportunities. This study aims to investigate whether RCOP has generated more employment opportunities in the “East-Central Anatolia Region” compared to its neighbor called “West-Central Anatolia Region”. As an identification strategy, we implement Difference-in-Differences (DiD) methodology, and for the robustness check, we apply DiD with Propensity Score Matching (PSM). The entire analysis relies on data derived from the Household Labor Force Survey between 2004 and 2017. Our findings show that RCOP increased only the employment rate of young people aged between 15–24. We find no evidence of a positive effect for people over 24 years old. Governments in other countries which are also concerned about unemployment and vulnerability among youth could implement similar policies. Even though the programme has been effective in increasing the youth employment rate, the employment gap between men and women persists in favor of men in all age groups, including the youth. This finding offers an insight into the necessity of additional policies to increase female employment and close the gender gap in employment opportunities.