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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.

Suggested Citation

  • Lourens Broersma & Jouke Van Dijk, 2001. "Regional labour market dynamics in The Netherlands," ERSA conference papers ersa01p197, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa01p197
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    References listed on IDEAS

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    1. Hassink, R. & van Ours, J.C. & Ridder, G., 1997. "Dismissal through disability," Other publications TiSEM b756763d-1536-4d61-84e4-9, Tilburg University, School of Economics and Management.
    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. 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.
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    Cited by:

    1. Shu-hen Chiang, 2009. "The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2505-2511.
    2. Hector Sala & Pedro Trivín, 2014. "Labour market dynamics in Spanish regions: evaluating asymmetries in troublesome times," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 197-221, August.
    3. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    4. van Der Laan, Lambert & de Boom, Jan & van Oort, Frank, 2000. "Sweet Talking Regions," ERSA conference papers ersa00p141, European Regional Science Association.
    5. Shu-hen Chiang, 2012. "The sources of metropolitan unemployment fluctuations in the Greater Taipei metropolitan area," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 775-793, November.
    6. Edward Nissan & Shahdad Naghshpour, 2014. "Comparing U.S. regions for selected economic and financial variables," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(3), pages 528-540, July.
    7. Timothy J. Bartik, 2015. "How Effects of Local Labor Demand Shocks Vary with the Initial Local Unemployment Rate," Growth and Change, Wiley Blackwell, vol. 46(4), pages 529-557, December.
    8. Kangasharju, Aki & Pekkala, Sari, 2002. "Adjustment to Regional Labour Market Shocks," Discussion Papers 274, VATT Institute for Economic Research.
    9. Nekkers G. & Eijs P. van & Grip A. de & Diephuis B., 2000. "Regional Supply-Demand Discrepancies: A Training Perspective," ROA Working Paper 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    10. Roberto Bande & Marika Karanassou, 2009. "Labour market flexibility and regional unemployment rate dynamics: Spain 1980-1995," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 181-207, March.
    11. 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.
    12. repec:wfo:wstudy:59156 is not listed on IDEAS
    13. 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.
    14. Edward Nissan & George Carter, 2003. "Contributions of state to regional income dispersion," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 27(2), pages 243-261, June.
    15. 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.
    16. Sanna-Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2009. "Matching Inefficiencies, Regional Disparities, and Unemployment," LABOUR, CEIS, vol. 23(3), pages 481-506, September.
    17. Solmaria Halleck Vega & J. Paul Elhorst, 2014. "Modelling regional labour market dynamics in space and time," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 819-841, November.
    18. 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.
    19. Sierdjan Koster & André Stel, 2014. "The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 203-217, March.
    20. 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, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    21. Daniela Todose, 2008. "Education Management in Knowledge Based Society," Contemporary Economics, University of Finance and Management in Warsaw, vol. 2(3), September.
    22. An Liu & Inge Noback, 2011. "Determinants of regional female labour market participation in the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 641-658, December.

    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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