Labor Market Issues in Belgium: An International Perspective

IMF Working Papers, April 1, 1993

Source details

The labor market in Belgium suffers from a number of structural problems compared to other industrial countries: the non-employment rate is very high, there are large regional disparities in unemployment, female and youth unemployment are prevalent, and there is an unusually pronounced incidence of long-term unemployment.
The recent labor market initiatives in Belgium will help to ameliorate some of the underlying problems but they are unlikely to completely address the underlying structural problems.

The empirical results use cross section data from 15 industrial countries.
The generosity of long-term unemployment benefits helps to explain the prevalence of long-term unemployment.
Unemployment compensation also appears to be paid to many who are not actively seeking work.

Recent Belgian labor market initiatives are expected to provide some improvement in underlying problems.
However, the initiatives are unlikely to completely address the structural problems identified (high non-employment rate, regional disparities, female and youth unemployment, pronounced long-term unemployment).

Source: IMF Working Papers — "Labor Market Issues in Belgium: An International Perspective" by Reza Moghadam (April 1, 1993).