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Table 4 Impact of consolidations on job finding 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 finding rate Budget balance Revenue Expenditure Change in structural balance
  Action-based Action-based Action-based  
Explanatory variables     
Job finding rate (1 lag) 0.718** 0.718** 0.720** 0.666**
  [9.340] [0.0779] [0.0751] [9.360]
Fiscal policy variable −0.305 −0.516 0.523 −0.259
  [−1.389] [0.338] [0.357] [−1.116]
Constant 3.449** 3.445** 3.440** 3.265**
  [4.136] [0.838] [0.824] [5.213]
Observations 115 115 115 229
R-squared 0.594 0.594 0.593 0.522
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.