ABSTRACT
This chapter focuses on the effects of institutional factors on the performance of regional labour markets in the Netherlands. It provides some background information for the functioning of regional labour markets. The regional differences in institutional factors are rather small in the Netherlands and the role of regional and local institutions on labour market performance is rather limited. For the Netherlands, as a relatively small economy, the international competitive position is of major importance. It is clear that there are important differences in the performance of regional labour markets in The Netherlands. However, there are no clear relations between the spatial patterns and the developments over time of employment growth, labour force growth, education and the level and growth of unemployment. Wage moderation is traditionally one of the main policy lines in the macroeconomic labour market policy in the Netherlands.
