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The flow approach in the Netherlands: an empirical analysis using regional information

C. Gorter and J.C. van Ours
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C. Gorter: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 17, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: In this paper we apply the flow approach to the Dutch labour market using two sets of regional data. From the first set we estimate matching functions for unemployed using data on the period 1980-1993. Using the second dataset we compare matching functions for unemployed and employed job seekers using data on the period 1981-1985. We conclude that the efficiency of the Dutch labour market has not worsened during the 1980s and that there are no differences in labour market efficiency between regions. Furthermore, we conclude that unemployed and employed job seekers have a different matching technology, while there are no regional differences in the matching technology. Finally, we conclude that the matching function has constant returns to scale.

Date: 1995
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