Why has job growth over the past decades been weaker in the Dutch Randstad area than in surrounding regions? In a simultaneous equations analysis, we find that employment adjusts to the regional supply of labour. Net internal migration is predominantly determined by regional housing supply and...

We investigate the interaction of regional population and employment in a simu1taneous model, allowing for interregional commuting. The proposed dynamic specification distinguishes between short-run and equilibrium adjustment effects and it encompasses the lagged-adjustment specification that is...

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment...