Commuters, residents and job competition in Luxembourg

Olivier Pierrard

Despite strong employment growth, unemployment is rising in Luxembourg. Stronger job competition from non-residents could explain this „unemployment paradox“. We construct a small theoretical search unemployment model of the Luxembourg labor market, with job competition between residents and cross-border commuters. We show both analytically and numerically that job competition alone cannot explain the unemployment paradox and we stress the role of the labor market institutions.

Zitiervorschlag

Pierrard, O. (2007). Commuters, residents and job competition in Luxembourg (Cahier d’études – Working Paper (BCL) Nr. 26). Luxembourg. Banque Centrale du Luxembourg (BCL).

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