, industrial structure, and geography. However, regional disparities could also be a consequence of policy distortions that hamper the adjustment to regional shocks, imposing welfare costs on regions and inflating structural unemployment at the national level. Therefore, addressing the regional dimension of labor market issues should be part of a strategy to reduce structural unemployment. This paper complements past IMF research by focusing on regional labor mobility . Regional labor markets could be characterized by a “challenging trinity”. Countries find it difficult to