The impact of Konya plain project on the agricultural sector employment in Konya and Karaman

This thesis aims at analysing the effect of the Konya Plain Project (KOP), which is one of the most important regional development projects of the recent period, on the regional employment indicators of Konya and Karaman. In the entire analysis, TURKSTAT Household Labor Force Survey (2008-2017) pooled cross-sectional micro level dataset is used. Although its geographical structure of the region makes the region very suitable for the agricultural activities, the terrestrial climate prevailing in the region triggers the extremely low rainfall in summer and creates an obstacle to the agricultural activities. For these reasons, one of the main goals of KOP is to establish an effective irrigation network in the region and to improve existing irrigation systems. In addition to improving irrigation systems, KOP launched other projects to stimulate the region's infrastructure and socio-economic structure like improving the employment opportunities. Using "difference in differences" and "propensity score matching" methods the effect of the policy on employment indicators between the years of 2008 and 2017 is empirically estimated. While results show that the KOP has not been effective on generating new employment in non-agricultural sectors of the region, it has had a significant and positive effect on agricultural employment. Findings, especially for the permanent employment, have shown that individuals working in agricultural sector are able to keep their jobs as a consequence of KOP. One of the policy suggestions of the thesis is the increasing level of youth migration from rural areas to the urban can be prevented by policies such as KOP.