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Table 10 Impact of consolidations, distinguishing by EPL strictness for temporary employment

From: Fiscal consolidation and unemployment: does EPL matter?: A look at EU countries

  (1) (2) (3) (4) (5) (6) (7) (8)
Dependent variables Cyclical unemployment Job separation rates Job finding rates Share of long-term unemployment
Explanatory variables         
  Low EPL High EPL Low EPL High EPL Low EPL High EPL Low EPL High EPL
Dependent variable (1 lag) 1.116** 1.298** 0.667** 0.860** 0.784** 0.704** 0.687** 0.848**
  [24.38] [15.71] [6.919] [17.26] [5.706] [14.80] [6.440] [14.65]
Dependent variable (2 lags) −0.573** −0.673**       
  [−11.86] [−8.563]       
Budget balance Action-based 0.135* 0.110+ 0.0412* −0.0167 0.0209 −0.888 0.509 −0.497
  [3.594] [2.395] [2.892] [−0.327] [0.0519] [−0.864] [0.769] [−1.017]
Constant 0.603* −0.223** 0.523** −0.231 4.969** 2.734 4.256 7.252+
  [2.735] [−4.057] [7.633] [−0.727] [4.330] [1.042] [1.451] [2.255]
Observations 196 157 60 55 60 55 104 102
R-squared 0.885 0.885 0.699 0.785 0.641 0.631 0.887 0.850
Number of countries 7 6 7 6 7 6 7 6
  1. Action-based budget balance.
  2. 13 EU countries, 1992–2009.
  3. +, *, ** denote statistical significance at the 10, 5, 1 per cent level respectively. T tests are reported in square brackets.
  4. Specification. All regressions include country and year fixed effects.
  5. Estimation method: fixed effect panel OLS, standard errors robust with respect to hetereoschedasticity and non-independence within country clusters.
  6. Legend. Fiscal variables: see footnote to Table 1. The grouping of countries with respect to the OECD EPL indicator for temporary employment is built on the basis of the median country-specific average value of the indicator for years after 2005.