Spatial Effects on the Youth Unemployment Rate

Abstract

The purpose of this study is to identify the common and different determinants of youth unemployment in the eastern and western regions of Russia, and especially to determine whether there are spatial effects. Dynamic panel models were estimated using the Arellano-Bond method; these models included four boundary-weighted matrices and four types of explanatory variables: (1) variables characterizing the demographic situation in a region, (2) variables on the migration processes in a region, (3) variables characterizing the economic situation in a region, and (4) variables on the export-import activity of a region.