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
This 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.
|Date of creation:||Aug 2005|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 241-246.
- 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.
- Overman, Henry G & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers.
- Henry Overman & Diego Puga, 1999. "Unemployment Clusters Across European Regions and Countries," CEP Discussion Papers dp0434, Centre for Economic Performance, LSE.
- Henry G. Overman & Diego Puga, 1999. "Unemployment clusters across European regions and countries," LSE Research Online Documents on Economics 20211, London School of Economics and Political Science, LSE Library.
- Lambert Van Der Laan & Richard Schalke, 2001. "Reality versus Policy: The Delineation and Testing of Local Labour Market and Spatial Policy Areas," European Planning Studies, Taylor & Francis Journals, vol. 9(2), pages 201-221, March.
- Paolo Mauro & Antonio Spilimbergo, 1998.
"How Do the Skilled and the Unskilled Respond to Regional Shocks? the Case of Spain,"
IMF Working Papers
98/77, International Monetary Fund.
- Paolo Mauro & Antonio Spilimbergo, 1999. "How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1.
- Decressin, Jorg & Fatas, Antonio, 1995.
"Regional labor market dynamics in Europe,"
European Economic Review,
Elsevier, vol. 39(9), pages 1627-1655, December.
- Benati, Luca, 2001. "Some empirical evidence on the 'discouraged worker' effect," Economics Letters, Elsevier, vol. 70(3), pages 387-395, March.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Christina Beatty & Stephen Fothergill, 2002. "Hidden Unemployment Among Men: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 811-823.
- Frank Cörvers & Maud Hensen, 2003. "The regionalization of labour markets by modelling commuting behaviour," ERSA conference papers ersa03p199, European Regional Science Association.
- 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.
- Lourens Broersma & Jouke van Dijk, 2002.
"Regional labour market dynamics in the Netherlands,"
Papers in Regional Science,
Springer;Regional Science Association International, vol. 81(3), pages 343-364.
- Lourens Broersma & Jouke Van Dijk, 2001. "Regional labour market dynamics in The Netherlands," ERSA conference papers ersa01p197, European Regional Science Association.
- 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).
- 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;Regional Science Association International, vol. 83(4), pages 649-668, October.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p207. See general information about how to correct material in RePEc.
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.