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
AbstractThis paper explores regional unemployment and participation data that distinguish gender, age and educational attainment. We observe a panel of 40 Dutch regions over the period 1992 - 2003. Issues such as the national component in regional labour market developments, the role of the labour force composition and persistence of unemployment and participation differentials are considered. A dominance of national unemployment and participation on regional outcomes is found, suggesting a modest regional component to labour market dynamics in the Netherlands. Composition of the potential labour force does not fully account for the remaining differences however. There exists a regional component to unemployment for lower educated, for example. We find that persistence of regional unemployment and participation differentials may be explained to some extent by persistence of regional differences in labour force composition. Persistence of these differentials is strong for lower educated but almost absent for higher educated persons, suggesting that the labour market for the higher educated clears at the national rather than the regional level. Finally, we investigate the effect of unemployment on labour participation. Unlike other recent evidence, our results yield little support for a “discouraged worker effect”. For all population groups, the relationship is statistically insignificant when we control for time-invariant and region-invariant heterogeneity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p207.
Date of creation: Aug 2005
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank Cörvers & Maud Hensen, 2003. "The regionalization of labour markets by modelling commuting behaviour," ERSA conference papers ersa03p199, European Regional Science Association.
- Blundell, Richard & Macurdy, Thomas, 1999.
"Labor supply: A review of alternative approaches,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695
- O'Leary, Nigel C. & Murphy, Philip D. & Latreille, Paul L. & Blackaby, David H. & Sloane, Peter J., 2005. "Accounting for Differences in Labour Market Outcomes in Great Britain: A Regional Analysis Using the Labour Force Survey," IZA Discussion Papers 1501, Institute for the Study of Labor (IZA).
- Lourens Broersma & Jouke Van Dijk, 2001.
"Regional labour market dynamics in The Netherlands,"
ERSA conference papers
ersa01p197, European Regional Science Association.
- Lourens Broersma & Jouke van Dijk, 2002. "Regional labour market dynamics in the Netherlands," Papers in Regional Science, Springer, vol. 81(3), pages 343-364.
- Benati, Luca, 2001. "Some empirical evidence on the 'discouraged worker' effect," Economics Letters, Elsevier, vol. 70(3), pages 387-395, March.
- Decressin, Jörg & Fatás, Antonio, 1994.
"Regional Labour Market Dynamics in Europe,"
CEPR Discussion Papers
1085, C.E.P.R. Discussion Papers.
- Christina Beatty & Stephen Fothergill, 2002. "Hidden Unemployment Among Men: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 811-823.
- Wouter Vermeulen & Jos van Ommeren, 2004. "Interaction of Regional Population and Employment," Tinbergen Institute Discussion Papers 04-083/3, Tinbergen Institute.
- Diego Puga, 1999.
"Unemployment clusters across Europe's regions and countries,"
dpuga-99-03, University of Toronto, Department of Economics.
- Henry G. Overman & Diego Puga, 2002. "Unemployment clusters across Europe's regions and countries," Economic Policy, CEPR & CES & MSH, vol. 17(34), pages 115-148, 04.
- Henry Overman & Diego Puga, 1999. "Unemployment Clusters Across European Regions and Countries," CEP Discussion Papers dp0434, Centre for Economic Performance, LSE.
- Overman, Henry G. & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers.
- Adelheid Holl, 2004.
"Start-ups and relocations: Manufacturing plant location in Portugal,"
Economics of Governance,
Springer, vol. 83(4), pages 649-668, October.
- Adelheid Holl, 2004. "Start-ups and relocations: Manufacturing plant location in Portugal," Papers in Regional Science, Springer, vol. 83(4), pages 649-668, October.
- Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 241-246.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.