## Regional Labor Market Disparities in Belgium

_IMF Working Papers, August 1, 2002_

## Source details

**Canonical URL:** [Regional Labor Market Disparities in Belgium](https://www.imf.org/en/publications/wp/issues/2016/12/30/regional-labor-market-disparities-in-belgium-15979)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/regional-labor-market-disparities-in-belgium-15979/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/regional-labor-market-disparities-in-belgium-15979/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/regional-labor-market-disparities-in-belgium-15979/bundle-manifest.json)

## 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)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02134.pdf.md){rel="alternate" type="text/markdown"}
  - [Regional Labor Market Diparities in Belgium - WP/02/134 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02134.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/regional-labor-market-disparities-in-belgium-15979_