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Table 1 Perceptions of employment protection legislation and firms’ behavior

From: Do firms make greater use of training and temporary employment when labor adjustment costs are high?

 

Provides training

Hires temporary workers

Provides training

Hires temporary workers

 

(1)

(2)

(3)

(4)

Perceptions (No obstacle)

    

Minor obstacle

0.009

0.020

  
 

(0.015)

(0.020)

  

Moderate to very severe obstacle

0.046

0.061

  
 

(0.027)+

(0.027)*

  

Perceptions (no or minor obstacle)

    

Moderate to very severe obstacle

  

0.043

0.055

   

(0.026)+

(0.024)*

Age (Less than 5 years old)

    

5 to 15 years old

0.010

0.050

0.010

0.049

 

(0.021)

(0.018)**

(0.021)

(0.018)**

16 or more

-0.031

0.074

-0.032

0.073

 

(0.033)

(0.039)

(0.033)

(0.036)*

Size (Less than 20 employees)

    

20 to 99 employees

0.165

0.056

0.165

0.057

 

(0.028)**

(0.026)*

(0.028)**

(0.026)*

100 or more employees

0.305

0.040

0.306

0.043

 

(0.027)**

(0.044)

(0.027)**

(0.043)

Publicly owned

0.053

0.018

0.053

0.018

 

(0.039)

(0.039)

(0.039)

(0.039)

Innovator

0.158

0.065

0.158

0.065

 

(0.034)**

(0.028)*

(0.034)**

(0.028)*

Manufacturing sector

-0.056

0.097

-0.056

0.096

 

(0.042)

(0.047)*

(0.043)

(0.047)*

Domestic ownership

-0.107

-0.055

-0.107

-0.056

 

(0.016)**

(0.025)*

(0.016)**

(0.025)*

Country income level (Low income)

    

Lower Middle income

0.219

0.092

0.219

0.092

 

(0.075)**

(0.086)

(0.075)**

(0.086)

Upper Middle income or high income

0.414

0.205

0.414

0.206

 

(0.056)**

(0.083)**

(0.056)**

(0.082)*

Observations (number of countries)

10771 (45)

Wald test for rho = 0

chi2(1) = 7.065

chi2(1) = 7.115

Prob > chi2 = 0.008

Prob > chi2 = 0.008

Predicted probability at the mean

0.535

0.450

0.535

0.450

  1. Marginal effects from bivariate probit model. Robust standard errors in parentheses (and adjusted for clustering on country). + = significant at 10%; * = significant at 5%; ** = significant at 1%. Where relevant, base categories of dummies are indicated in parentheses in italics.
  2. Data source: Investment Climate Surveys (World Bank).