Regional Labour Markets in Belgium: The Role of Education

Abstract

This paper delves into labour market differences across the three regions in Belgium. I use the information available in the Labour Force Survey to examine how personal and family characteristics affect labour force participation and unemployment risk, as well as how these effects differ across the three regions, by means of a Heckman selection model. I find a paramount role of education in increasing and decreasing labour force participation and unemployment risk, respectively, although with diminishing marginal returns. Crossregional comparisons show that these effects are even more pronounced in Wallonia, whereas Flanders does not show significant differences from Brussels.