TFP | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
|---|
Inequality | 0.69 | 0.72 | 0.77 | 0.88 | 0.63 | 0.53 | 0.65 | 0.64 |
| Â | (2.87) | (3.27) | (3.30) | (3.98) | (2.75) | (2.42) | (3.33) | (3.10) |
Employment | Â | 0.79 | Â | 1.00 | Â | Â | 1.06 | 0.91 |
| Â | Â | (5.53) | Â | (4.42) | Â | Â | (8.12) | (4.38) |
Institutional quality | Â | Â | Â | Â | 0.13 | 0.20 | 0.20 | 0.19 |
| Â | Â | Â | Â | Â | (4.17) | (5.41) | (7.10) | (5.37) |
Country effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Year effects | No | No | Yes | Yes | No | Yes | No | Yes |
- Robust t statistics in parentheses. Data sources and definitions: The Conference Board for Total Factor Productivity (1990 = 1 index) and Employment rate (fraction). Eurostat for Inequality, measured as the Gini coefficient (fraction) of equivalized household income. The World Bank for Institutional quality, measured as the average of the six World Bank Governance Indicator (sample mean = 1.31, std.dev. = 0.39). The sample includes yearly 1996–2011 observations for Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain; inequality and institutional quality data are available for roughly half of the years, somewhat unevenly across countries, and are interpolated when missing.
