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Table 2 Actual 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 Uses temporary workers Provides training Uses temporary workers
Firms characteristics     
Age (Less than 5 years old)     
5 to 15 years old 0.010 0.045 0.008 0.053
  (0.019) (0.018)* (0.021) (0.019)**
16 or more -0.024 0.075 -0.034 0.099
  (0.027) (0.033)* (0.031) (0.039)*
Size (Less than 20 employees)     
20 to 49 employees 0.212 -0.005   
  (0.045)** (0.051)   
49 to 99 employees 0.311 0.164   
  (0.048)** (0.074)*   
100 or more employees 0.457 0.182   
  (0.051)** (0.121)   
Publicly owned 0.028 0.007 0.060 -0.031
  (0.037) (0.035) (0.040) (0.048)
Innovator 0.174 0.073 0.167 0.099
  (0.023)** (0.026)** (0.028)** (0.029)**
Manufacturing sector -0.037 0.112   
  (0.044) (0.046)*   
Domestic ownership -0.094 -0.046 -0.093 -0.039
  (0.019)** (0.026)+ (0.019)** (0.023)+
Country income level (Low income)     
Lower Middle income 0.244 0.108 0.250 0.137
  (0.071)** (0.081) (0.072)** (0.074)+
Upper Middle income or high income 0.439 0.230 0.447 0.225
  (0.049)** (0.083)** (0.047)** (0.067)**
Labor regulations indexes     
Regular employment regulations 0.888 0.468   
  (0.229)** (0.199)*   
Regular employment regulations* 20 to 49 employees -0.329 0.099   
  (0.154)* (0.140)   
Regular employment regulations* 49 to 99 employees -0.419 -0.265   
  (0.219)+ (0.216)   
Regular employment regulations* 100 or more employees -0.611 -0.423   
  (0.204)** (0.354)   
Regular employment regulations* US job flow    1.720 0.845
    (0.440)** (0.440)+
US job flow    -1.350 -0.478
    (0.169)** (0.181)**
Observations (number of countries) 10894 (43) 10512 (43)
Wald test for rho = 0 chi2(1) = 4.999 chi2(1) = 2.821
Prob > chi2 = 0.025 Prob > chi2 = 0.093
Predicted probability at the mean 0.534 0.449 0.538 0.446
  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).