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In the literature, definitions about what constitutes a spatial or local labour market vary considerably. Two main approaches can be distinguished.

In one, the labour market is defined as a homogeneous area sharing common labour market characteristics. Cluster analysis is the technique most often used to identify such areas.

In the other approach, the labour market is defined as a nodal area, the boundaries of which are traced with the goal of containing the inter-relations between its constituent entities. A typical application of this approach is the mapping of functional labour markets on the basis of the commuting patterns of workers.

The most appropriate spatial framework depends on the purpose of the analysis that will be conducted with it.

Source Publication:
OECD Employment Outlook, June 2000, Chapter 2, Disparities in Regional Labour Markets, page 34.

Statistical Theme: Labour statistics

Created on Thursday, May 2, 2002

Last updated on Wednesday, March 5, 2003