Regional Labour Markets in Belgium: The Role of Education

This paper delves into the differences across the three regions in Belgium at the level of the labour market. I use the information available in the Labour Force Survey to examine how personal and family characteristics affect the probability of an individual being active and unemployed. Effects on labour force participation and unemployment risk, as well as how they differ in the three regions, are assessed by means of a Heckman 2-stage selection model. I find a paramount role of education, both as explanatory variable and major source of dissimilarities across regions. In Brussels, holding a... Mehr ...

Verfasser: Sonnewald, David
Dokumenttyp: workingPaper
Erscheinungsdatum: 2024
Schlagwörter: Heckman selection / Determinants of unemployment / Regional unemployment
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-28960804
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : http://hdl.handle.net/2078.1/290777

This paper delves into the differences across the three regions in Belgium at the level of the labour market. I use the information available in the Labour Force Survey to examine how personal and family characteristics affect the probability of an individual being active and unemployed. Effects on labour force participation and unemployment risk, as well as how they differ in the three regions, are assessed by means of a Heckman 2-stage selection model. I find a paramount role of education, both as explanatory variable and major source of dissimilarities across regions. In Brussels, holding a Master’s or a higher degree reduces the probability of being unemployed by 2 additional percentage points with respect to having only a Bachelor’s diploma. Conversely, in Flanders, education shows diminishing marginal returns. Such finding corroborates the evidence of education polarisation in big cities against the peripheries.