A decade of labour market reforms in the EU: insights from the LABREF database

Table 2 Correlation of LABREF reform stance in relevant domain with change in policy indicator (2000–2011)

Policy Indicator	Reform stance in policy domain	Correlation	P-value of test of no corr.	No. of countries
Tax wedge	Labour taxation	0.26	0.00	27
Net replacement rate of UB	Unemployment benefits	0.12	0.06	27
ALMP spending (% GDP)	ALMP	0.25	0.00	20
EPL indicator (regular contracts)	EPL	0.10	0.14	21

Source: LABREF reform stance: number of reforms in “increasing” direction minus number of reforms in the “decreasing” direction. For the definition of reform direction, see Appendix B. For the exact definition and source of policy variables, see Appendix C.