Regional Labor Market Disparities in Belgium

Estevào, Marcello

Regional Labor Market Disparities in Belgium - 2003.


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Regional labor market discrepancies have been widening in Belgium over the last two decades and are more evident within particular demographic groups. These developments can largely be accounted for by a worse matching of people to jobs in high-unemployment provinces. Using a structural VAR, we show that labor market dynamics in Belgium produce a strong attenuating effect on employment growth, in contrast to the United States, where initial labor demand shocks are expanded over the long term. Once the short-term adjustment is over, there is less labor migration in Belgium than in the United States or Europe, corroborating the perception that Belgians relocate too little.

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