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Table 14 The impact of overall employment rate growth on age-specific employment rate growth

From: Who bears the cost of the business cycle? Labor-market institutions and volatility of the youth unemployment rate

 

(1)

(2)

(3)

(4)

(5)

VARIABLES

ΔE15-24, t

ΔE25-34, t

ΔE45-54, t

ΔE15-24, t -ΔE45-,54, t

ΔE25-34, t -ΔE45-,54, t

ΔUnemployment rateall ages, t

1.478 (0.132)

1.143 (0.090)

0.612 (0.097)

0.866 (0.187)

0.531 (0.132)

Employment Protection Legislation t-1

−0.193 (0.112)

0.051 (0.076)

0.004 (0.082)

−0.197 (0.159)

0.048 (0.112)

BenefitDuration t-1

−0.134 (0.091)

0.121 (0.062)

0.018 (0.067)

−0.151 (0.130)

0.104 (0.091)

Benefit Replacement Ratio t-1

0.100 (0.123)

−0.140 (0.084)

−0.081 (0.091)

0.181 (0.175)

−0.059 (0.123)

UnionDensity t-1

−0.060 (0.074)

0.081 (0.051)

−0.017 (0.055)

−0.043 (0.105)

0.099 (0.074)

UnionCoverage t-1

0.148 (0.113)

−0.057 (0.077)

−0.021 (0.083)

0.169 (0.160)

−0.036 (0.113)

Centralization t-1

0.050 (0.116)

0.145 (0.080)

−0.005 (0.086)

0.055 (0.166)

0.150 (0.117)

Coordination t-1

0.085 (0.124)

−0.177 (0.085)

0.090 (0.092)

−0.005 (0.177)

−0.267 (0.124)

Employment Protection Legislation t-1×ΔUEall ages, t

0.160 (0.153)

−0.199 (0.104)

−0.222 (0.113)

0.382 (0.218)

0.023 (0.153)

BenefitDuration t-1×ΔUEall ages, t

0.073 (0.129)

−0.213 (0.088)

−0.016 (0.095)

0.089 (0.183)

−0.197 (0.129)

Benefit Replacement Ratio t-1×ΔUEall ages, t

−0.216 (0.261)

0.484 (0.178)

0.272 (0.193)

−0.488 (0.371)

0.212 (0.261)

UnionDensity t-1×ΔUEall ages, t

0.058 (0.092)

−0.004 (0.063)

−0.081 (0.067)

0.140 (0.130)

0.077 (0.092)

UnionCoverage t-1×ΔUEall ages, t

−0.352 (0.236)

0.229 (0.161)

0.167 (0.174)

−0.520 (0.336)

0.062 (0.236)

Centralization t-1×ΔUEall ages, t

0.250 (0.361)

−0.431 (0.247)

0.190 (0.266)

0.060 (0.514)

−0.620 (0.361)

Coordination t-1×ΔUEall ages, t

−0.112 (0.376)

0.313 (0.257)

−0.239 (0.277)

0.127 (0.535)

0.552 (0.376)

Δln(15-24population)

1.855 (3.473)

1.180 (2.372)

7.514 (2.561)

−5.659 (4.941)

−6.334 (3.475)

Δln(25-34population)

1.664 (3.177)

−0.382 (2.170)

−16.062 (2.343)

17.726 (4.519)

15.680 (3.179)

Constant

−3.899 (5.819)

−0.950 (3.974)

8.398 (4.291)

−12.296 (8.278)

−9.348 (5.822)

Observations

489

489

489

489

489

Number of countries

18

18

18

18

18

  1. Notes: Standard errors are in parentheses. Each institution index is computed as the deviation from the mean over standard error. All specifications include year dummy variables.
  2. Independent variable : Δ(Employment rate)specific age,t.
  3. Macroeconomic shock: Δ(Employment rate)all ages,t.
  4. Estimation Method: Random Effects IV using Δ(GDP growth rate) t-1 as IV.