Modeling male and female employment policy in Greece from local data

The article analyzes the population shares of employed, unemployed and other men and women by utilizing the 2001 Greek Census data collected at the municipal level. It departs from other studies on the subject by (a) considering not one but all economic activities simultaneously, (b) trying to ameliorate through space the common, yet often overlooked, regression misspecification problem, and (c) resorting to the use of fresh spatial arguments, as opposed to conventional regional or sub-regional regressors. In particular, the demographic, educational, and other conventional, available independent variables are supplemented with territorial arguments constructed from the inter-municipal functional linkages and the patterns of the residuals. By isolating the effects of the spatial and non-spatial factors driving economic activity, the article brings to light sub-regional and cross-regional patterns that might otherwise go undetected, and provides a better understanding of the internal heterogeneity of the country. This facilitates the formulation of (i) better-targeted employment and unemployment policy interventions aiming to treat disparities at the local and micro-regional level, alongside (ii) broader, nation-wide interventions.