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Regional labour market dynamics in The Netherlands

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  • Lourens Broersma

    ()

  • Jouke Van Dijk

    ()

Abstract

This paper analyses the response of the Dutch labour market to a regional labour demand shock. European-wide studies and US labour market studies found that in Europe adjustment to such a shock runs primarily through changes in participation, while in the US this is through migration of workers. Another striking difference is that the admustment process in the US takes places a much higher speed than in regions in European countries The main explanation for this phenomenon is the rigid labour market in Europe, against the flexible labour market in the US, which is expressed by the fact that spatial mobility among US workers is much higher than among European workers. A similar approach to the Dutch labour market shows that adjustment to labour demand shocks is primarily through changes in participation. In that sense it fits the European picture. As far as the speed of adjustment to a shock is concerned, the Dutch labour market seems more in line with American than with European levels. A disaggregate analysis shows that particularly the response of the northern labour market stands out. Adjustment to a shock is absorbed faster than in other Dutch regions. Furthermore, unemployment and migration are more important as absorption channels in the North than in the other regions.

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa01p197.

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Date of creation: Aug 2001
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Handle: RePEc:wiw:wiwrsa:ersa01p197

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References

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  1. Broersma, Lourens & Koeman, Jan & Teulings, Coen, 2000. "Labour Supply, the Natural Rate, and the Welfare State in The Netherlands: The Wrong Institutions at the Wrong Point in Time," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 96-118, January.
  2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  3. Hassink, R. & Ours, J.C. van & Ridder, G., 1997. "Dismissal through disability," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86871, Tilburg University.
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Citations

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Cited by:
  1. Wouter Vermeulen & Jos Van Ommeren, 2004. "Interaction of Regional Population and Employment over Time: identifying short-run effects and equilibrium adjustment," ERSA conference papers ersa04p256, European Regional Science Association.
  2. Wouter Vermeulen, 2005. "Regional disparities in a small country? An assessment of the regional dimension to the Dutch labour market on the basis of regional unemployment and participation differentials," ERSA conference papers ersa05p207, European Regional Science Association.
  3. Madsen, Bjarne & Jensen-Butler, Chris, 2004. "Theoretical and operational issues in sub-regional economic modelling, illustrated through the development and application of the LINE model," Economic Modelling, Elsevier, vol. 21(3), pages 471-508, May.
  4. Pellenbarg, P.H. & Wissen, L.J.G. van & Dijk, J. van, 2002. "Firm relocation: state of the art and research prospects," Research Report 02D31, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  5. Aki Kangasharju & Sari Pekkala, 2002. "Adjustment to Regional Labour Market Shocks," Discussion Papers 274, Government Institute for Economic Research Finland (VATT).
  6. Wouter Vermeulen, 2006. "Regional disparities in a small country? An analysis of regional unemployment and participation differentials in the Netherlands from 1975 to 2003," CPB Document 113, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Wouter Vermeulen & Jos van Ommeren, 2004. "Interaction of Regional Population and Employment," Tinbergen Institute Discussion Papers 04-083/3, Tinbergen Institute.
  8. Nekkers,G. & Eijs,P.,van & Grip,A.,de & Diephuis,B., 2000. "Regional Supply-Demand Discrepancies: A Training Perspective," Working Papers 005, Maastricht : ROA,Research Centre for Education and the Labour Market.
  9. van Der Laan, Lambert & de Boom, Jan & van Oort, Frank, 2000. "Sweet Talking Regions," ERSA conference papers ersa00p141, European Regional Science Association.
  10. Edward Nissan & George Carter, 2003. "Contributions of state to regional income dispersion," Journal of Economics and Finance, Springer, vol. 27(2), pages 243-261, June.
  11. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Section of Economic Geography, revised Dec 2004.
  12. An Liu & Inge Noback, 2011. "Determinants of regional female labour market participation in the Netherlands," The Annals of Regional Science, Springer, vol. 47(3), pages 641-658, December.

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