Regional Disparities and Unemployment Rate: Role of Education in Regional Development
Regional Disparities and Unemployment Rate: Role of Education in Regional Development

Summary/Abstract: When it comes to unemployment, graduates and youth become to the most sensitive group of all active population. They lack experiences, soft skills and intercultural understanding. When the economic crisis showed up, the unemployment of the youth rose in the European Union and in Slovakia as a part of it. In Slovakia, various disparities between regions occurred, measured by the NEET indicator. While in the west part of the country only slight changes in the youth unemployment showed up, the very eastern part suffers by extremely high rate, some regions up to the 70%. Using the spatial autocorrelation, we have proved the impact of the education on the youth unemployment rate in 79 districts. However, the relationship between the unemployment rate and education is not the same in all districts and here the spatial paradox occurs; the quantile regression has showed, that in districts with the low unemployment rate the role of the education is much stronger than in districts with the high unemployment rate. This impact of the education is changeable and influenced by period, current economic cycle, internal political situation and the policy of EU bodies and institution.

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