Regional labour market dynamics in the Netherlands

This article analyzes the response of regional labor markets in the Netherlands to region-specific labor demand shocks. Previous studies show remarkable differences in response between regions in European countries and regions in the United States. The analysis shows that, in Dutch regions, the speed of adjustment is similar to that of the US, but the primary adjustment mechanism is the same as in Europe. Whereas previous studies analyze only average patterns of all regions in a country, we also provide a more in-depth analysis of within country differences in labor market adjustment processes, thus showing remarkable differences between regions within the Netherlands.