Regional Labor Market Disparities in Belgium

IMF Working Papers, August 1, 2002

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Regional Labor Market Disparities in Belgium

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Bibliographic details

• Authors: Marcello M. Estevão
• Published: August 1, 2002
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451855616.001

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 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."

Key Findings and Analysis

• Widening regional discrepancies:
  • Discrepancies have increased over the last two decades.
  • The widening is more pronounced within particular demographic groups.
• Matching and mismatch:
  • Worse matching of people to jobs in high-unemployment provinces largely accounts for the developments.
  • The term “mismatch problem” appears among keywords describing the study focus.
• Dynamics from structural VAR:
  • Labor market dynamics in Belgium produce a strong attenuating effect on employment growth.
  • By contrast, in the United States initial labor demand shocks are expanded in the long run.
• Migration and adjustment:
  • After short-run adjustment is over, there is less labor migration in Belgium than in the United States or Europe.
  • This pattern supports the perception that Belgians move "too little."

Subjects and Keywords

• Subjects:
  • Employment, Labor, Labor force, Labor force participation, Labor markets, Unemployment rate
• Keywords:
  • divergences, dynamics, Employment, employment growth, employment response, Europe, geography, industry employment, job-skill mismatch, labor, Labor force, Labor force participation, Labor markets, mismatch problem, reductions in depressed areas, Unemployment rate, wage, wage differentiation, wage dispersion, wage reduction, WP

Content in this bundle

• Regional Labor Market Diparities in Belgium - WP/02/134
  • Regional Labor Market Diparities in Belgium - WP/02/134 (Markdown version)
  • Regional Labor Market Diparities in Belgium - WP/02/134 (PDF)