How quickly does structural reform pay off? An empirical analysis of the short-term effects of unemployment benefit reform

Table 3 The impact of benefit duration reforms

Year after the shock	Year 1	Year 2	Year 3	Year 4	Year 5
Decline of initial UB replacement rate 2 standard deviation threshold	0.028	0.047	0.068**	0.096**	0.125**
	(0.017)	(0.035)	(0.032)	(0.044)	(0.047)
Decline of UB duration 2 standard deviation threshold	1.598	0.991	−4.876	2.630	12.186*
	(1.329)	(3.426)	(3.532)	(5.493)	(6.525)
No. observations	503	474	446	418	390
R²	0.454	0.456	0.436	0.427	0.428
No. of countries	29	28	28	28	28
Country fixed effects	YES	YES	YES	YES	YES
Year fixed effects	YES	YES	YES	YES	YES
*Descriptive Statistics*
	Number of reform shocks	Mean	Standard deviation	Minimum	Maximum
Decline of UB duration 2 standard deviation threshold	6	−0,2	0.09	−0,13	−0.36

***, ** and * represent statistical significance at the 1%, 5% and 10% levels, respectively. Robust standard errors are in parentheses.