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Labor mobility in Belgium: a panel VAR approach
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This research investigates labor market dynamics in Belgium and the specific role played by labor mobility in the adjustment process following a labor demand shock. It first analyzes the time series characteristics of the Belgian labor market based on a panel of 11 provinces from 2003 to 2015. This analysis allows the building and estimation of a PVAR model to obtain the response of employment, employment rate, and labor force participation rate to a shock in labor demand. The results suggest a minor role played by migration in the first years of the adjustment process, highlighting the difficulties for the EU to be considered an OCA.
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Labor mobility European Union PVAR Estimation OCA