Reality versus Policy: The Delineation and Testing of Local Labour Market and Spatial Policy Areas

Abstract

As part of the empirical planning science, this article integrates theory, empirical findings and policy. It first deals with the question how to reach a theoretically well-grounded and empirical applicable delineation of local labour market areas. An inductive classification method is selected based on the behaviour of individual commuters without selecting a priori central places. By this, new urban forms like polynodality are included. In using this method for the Netherlands, 31 local labour market areas (LLAs) were distinguished. Moreover, the article elaborates some simple measures to test the optimality of LLA classifications. The 31 LLAs adequately reflect the 'reality' of actual functional labour market relationships. The article also investigates the matching between reality and the LLA classification as used in spatial policy. There is a large gap between reality and policy. This urges bringing the policy classification more in line with existing LLAs. Alternatively, if one considers the present policy classification as an instrument for future spatial structure, much additional effort will be required. The findings of the article can be easily applied to other European countries.