Regional unemployment patterns: a cluster analysis approach to the portuguese economy
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abstract
The data mining methodology, in particular the cluster analysis technique, is an important ally in the
study of economic patterns in a multivariate framework. Aware of its analytical importance this paper
adopts such method of study to identify groups of Portuguese administrative regions that share similar
patterns regarding some characteristics of unemployed registered individuals. The regional distribution
of the unemployed individual characteristics is of core importance for the development of public
policies directed to fight the unemployment phenomenon, especially in times of crisis. The research is
based on annual cross-section data, from the Portuguese public employment service, for the period
before and after the finance crisis. The analysis over time tries to find out if there are persistent
regional trends especially when the aggregate unemployment rate rises. Preliminary results show a
clear division of the territory into four regions – north and south and urban and rural areas - that
stresses the importance of designing well-directed public labour policies.
