Labor Mobility in Belgium : An Empirical Analysis of the Relationship between Provincial Employment Dynamics and Migration

In this study, a new two-step procedure is followed in order to investigate the degree of labor mobility in Belgium. The first step has led us to describe employment dynamics and to identify permanent and temporary employment shocks at a provincial level via a common trend-common cycle analysis. Then a causality analysis is performed. It reveals that migration flows are only little affected by employment shocks. Two features can nevertheless be exhibited. only permanent shocks in the Flemish labor market affect migration flows. Only border provinces (Limburg and Flemish Brabant) appear to be attractive for migrants after a positive employment shock.