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Table 3 Impact of consolidations on job separation rates

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

  (1) (2) (3) (4)
  Action-based fiscal policy variables, 13 EU, 1997-2009 “Top-down” fiscal policy variables, EU27, 1997-2010
Dependent variable: Job separation rate Budget balance Revenue Expenditure Change in structural balance
  Action-based Action-based Action-based  
Explanatory variables     
Job separation rate (1 lag) 0.778** 0.783** 0.776** 0.767**
  [9.692] [0.0782] [0.0806] [13.18]
Fiscal policy variable 0.0296* 0.0542* −0.0465 0.0463*
  [2.518] [0.0239] [−0.0285] [2.504]
Constant 0.174 0.172 0.174 0.131
  [1.221] [0.141] [0.142] [1.133]
Observations 115 115 115 225
R-squared 0.720 0.720 0.718 0.685
Number of countries 13 13 13 27
  1. +, *, ** denote statistical significance at the 10, 5, 1 per cent level respectively. T tests are reported in square brackets.
  2. Specification. All regressions include country and year fixed effects.
  3. Estimation method. Action-based fiscal policy: fixed effect panel OLS. Top-down fiscal policy measures: fixed effect panel instrumental variables (the fiscal policy variable is instrumented with its own lag, the lagged output gap, and the lagged government debt/GDP ratio). Standard errors are robust with respect to hetereoschedasticity and non-independence within country clusters.
  4. Legend. Fiscal variables: see footnote to Table 1.