The role of short-time work schemes during the global financial crisis and early recovery: a cross-country analysis

Hijzen, Alexander; Martin, Sebastien

doi:10.1186/2193-9004-2-5

Table 5 Dynamic results on the impact of STW on the labour market outcomes of (Cont.)

From: The role of short-time work schemes during the global financial crisis and early recovery: a cross-country analysis

		Change in employment			Change in average hours worked			Change in total hours worked
		Model 1:	Model 2:	Model 3:	Model 1:	Model 2:	Model 3:	Model 1:	Model 2:	Model 3:
		OLS	OLS with institution	IV with institution	OLS	OLS with institution	IV with institution	OLS	OLS with institution	IV with institution
Lagged dependent variable in level		-0.060 **	-0.087 ***	-0.142 **				-0.248 ***	-0.300 ***	-0.372 ***
		(0.026)	(0.030)	(0.057)				(0.046)	(0.052)	(0.081)
Output		0.015	0.014	0.093*				0.112 ***	0.098 ***	0.364 ***
		(0.016)	(0.016)	(0.052)				(0.032)	(0.034)	(0.093)
Output growth	t	0.125 ***	0.215 **	0.381	0.321 ***	0.442	1.946 ***	0.392 ***	0.777 **	4.224 ***
	t	(0.048)	(0.108)	(0.387)	(0.108)	(0.294)	(0.655)	(0.111)	(0.302)	(0.912)
	t-1	0.100 *	0.140	0.151	-0.216 **	-0.333	-1.394 **	-0.082	-0.128	-0.970 *
	t-1	(0.059)	(0.122)	(0.234)	(0.107)	(0.347)	(0.566)	(0.102)	(0.341)	(0.549)
	t-2	0.271 ***	0.227 **	0.301 *	-0.094	-0.192	0.281	0.234 **	0.081	0.439
	t-2	(0.045)	(0.100)	(0.177)	(0.103)	(0.338)	(0.507)	(0.106)	(0.308)	(0.504)
STW take-up rate	t	0.001	0.001	-0.016	0.008	0.006	-0.090 ***	0.008	0.005	-0.177 ***
	t	(0.002)	(0.002)	(0.018)	(0.005)	(0.005)	(0.018)	(0.005)	(0.005)	(0.037)
	t-1	0.000	0.001	0.005	-0.008	-0.006	0.036 ***	-0.008	-0.005	0.031 ***
	t-1	(0.003)	(0.003)	(0.004)	(0.008)	(0.008)	(0.010)	(0.008)	(0.007)	(0.010)
	t-2	-0.002	-0.002	-0.005 *	0.003	0.002	-0.002	0.001	0.001	-0.002
	t-2	(0.003)	(0.003)	(0.003)	(0.004)	(0.004)	(0.009)	(0.005)	(0.005)	(0.009)
Output growth times STW take-up rate	t	0.055	0.059	0.105 *	0.253 **	0.267 **	0.013	0.235 **	0.250 **	0.067
	t	7(0.043)	(0.042)	(0.053)	(0.102)	(0.109)	(0.117)	(0.103)	(0.100)	(0.113)
	t-1	-0.053	-0.057	-0.108 **	0.051	-0.010	0.310 **	0.011	-0.043	0.187
	t-1	(0.048)	(0.046)	(0.048)	(0.082)	(0.090)	(0.142)	(0.091)	(0.092)	(0.135)
	t-2	-0.090 **	-0.089 **	-0.081 *	-0.148 **	-0.129	-0.327 ***	-0.236 ***	-0.209 **	-0.314 ***
	t-2	(0.036)	(0.037)	(0.041)	(0.072)	(0.081)	(0.103)	(0.074)	(0.082)	(0.095)
Overall strictness of employment protection	t		-0.017	0.010		0.084 ***	0.145 ***		0.082 ***	0.289 ***
	t		(0.012)	(0.027)		(0.029)	(0.049)		(0.027)	(0.064)
	t-1		0.012	0.014		-0.202 ***	-0.165 **		-0.171 ***	-0.135 *
	t-1		(0.014)	(0.022)		(0.061)	(0.079)		(0.058)	(0.075)
	t-2		0.000	0.010		0.118 **	0.093		0.076	0.059
	t-2		(0.009)	(0.017)		(0.053)	(0.068)		(0.051)	(0.061)
Output growth times overall strictness of employment protection	t		-0.099 *	-0.265 **		-0.076	-0.390		-0.329 **	-1.226 ***
	t		(0.059)	(0.107)		(0.147)	(0.253)		(0.141)	(0.285)
	t-1		0.006	0.017		0.187	0.130		0.123	-0.014
	t-1		(0.071)	(0.113)		(0.174)	(0.260)		(0.165)	(0.228)
	t-2		-0.056	-0.217 **		-0.084	-0.033		-0.143	-0.378 *
	t-2		(0.056)	(0.084)		(0.165)	(0.231)		(0.158)	(0.223)
UB net replacement rate (average over 60 months)	t		0.000	0.000		0.001	0.002 ***		0.001*	0.004 ***
	t		(0.000)	(0.000)		(0.001)	(0.001)		(0.000)	(0.001
	t-1		0.000	-0.001 **		-0.003 ***	-0.004 ***		-0.003 ***	-0.004 ***
	t-1		(0.000)	(0.000)		(0.001)	(0.001)		(0.001)	(0.001)
	t-2		0.000	0.000		0.002 ***	0.003 ***		0.002 **	0.002 ***
	t-2		(0.000)	(0.000)		(0.001)	(0.001)		(0.001)	(0.001)
Output growth times UB net replacement rate (average over 60 months)	t		0.002	0.003		-0.001	-0.015*		0.002	-0.027 ***
	t		(0.002)	(0.005)		(0.005)	(0.008)		(0.005)	(0.010)
	t-1		-0.002	-0.002		-0.004	0.010		-0.004	0.010
	t-1		(0.002)	(0.003)		(0.005)	(0.006)		(0.004)	(0.006)
	t-2		0.003 *	0.007 ***		0.006	-0.002		0.009 **	0.010
	t-2		(0.002)	(0.002)		(0.005)	(0.006)		(0.004)	(0.006)
Number of countries		23	23	13	23	23	13	23	23	13
Number of observations		589	573	330	589	573	330	589	573	330
R-squared		0.53	0.58	0.55	0.94	0.95	0.95	0.95	0.95	0.95

Robust standard errors in brackets. Regressions include country time quarter dummies and year dummies.
a) Dependent variables and output in logs.
***, **, *: Statistically significant at the 1%, 5% and 10% level, respectively.
Source: Authors' estimates.

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