Regional Labor Market Disparities in Belgium

Author/Editor:

Marcello M. Estevão

Publication Date:

August 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Regional labor market discrepancies have been widening in Belgium in the last two decades and are more evident within particular demographic groups. These developments can largely be accounted for by worse matching of people to jobs in the high-unemployment provinces. Using a structural VAR, it is also shown 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 in the long run. After the short-run adjustment is over, there is less labor migration in Belgium than in the United States or Europe, corroborating the perception that Belgians move "too little."

Series:

Working Paper No. 2002/134

Subject:

English

Publication Date:

August 1, 2002

ISBN/ISSN:

9781451855616/1018-5941

Stock No:

WPIEA1342002

Pages:

29

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