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Table 3 Determinants of labour market reforms by direction, nature and scope

From: Drivers and effects of labour market reforms: Evidence from a novel policy compendium

 

Direction

Temporal horizon

Coverage

 

Increasing reforms

Decreasing reforms

Temporary reforms

Permanent reforms

Complete reforms

Two-tier reforms

 

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

Unemployment (lag)

0.015

0.006

0.069***

0.057**

0.157***

0.013**

0.036***

0.049**

0.055***

0.048**

0.015

0.014*

(0.012)

(0.006)

(0.019)

(0.025)

(0.031)

(0.006)

(0.012)

(0.022)

(0.014)

(0.020)

(0.023)

(0.008)

Unemployment (difference)

0.026

0.027

0.116*

0.266**

0.174**

0.046

0.098*

0.248**

0.109*

0.187**

0.115*

0.106*

(0.063)

(0.037)

(0.064)

(0.118)

(0.080)

(0.028)

(0.052)

(0.115)

(0.056)

(0.084)

(0.063)

(0.057)

Gap growth (lag)

0.023

0.006

0.025

0.024

0.096

0.003

0.030

0.027

0.022

0.017

0.059*

0.012

(0.025)

(0.009)

(0.045)

(0.021)

(0.063)

(0.003)

(0.028)

(0.025)

(0.032)

(0.020)

(0.033)

(0.009)

Fiscal consolidation

0.262

0.134

0.288

0.234

0.053

0.045

0.282*

0.322

0.248

0.214

0.317*

0.153*

(0.163)

(0.090)

(0.205)

(0.163)

(0.316)

(0.034)

(0.155)

(0.213)

(0.161)

(0.154)

(0.175)

(0.078)

Fixed exchange

0.340**

0.215**

0.539*

0.470

0.349

0.089*

0.356

0.596*

0.258

0.351

0.677**

0.334**

(0.173)

(0.095)

(0.325)

(0.291)

(0.465)

(0.049)

(0.235)

(0.318)

(0.234)

(0.231)

(0.269)

(0.135)

Election year

0.028

0.016

−0.131

−0.142

−0.281

−0.019

−0.099

−0.108

−0.155

−0.117

0.057

−0.010

(0.186)

(0.083)

(0.214)

(0.118)

(0.501)

(0.033)

(0.167)

(0.163)

(0.166)

(0.120)

(0.218)

(0.071)

Post-election

−0.114

−0.010

−0.014

0.062

−0.154

0.003

−0.136

0.048

−0.169

0.021

0.086

0.031

(0.164)

(0.079)

(0.218)

(0.161)

(0.418)

(0.026)

(0.164)

(0.212)

(0.197)

(0.167)

(0.179)

(0.069)

Ideology

0.345**

0.145*

0.017

0.001

0.100

0.011

0.260*

0.134

0.340**

0.161

−0.019

−0.016

(0.155)

(0.077)

(0.218)

(0.145)

(0.338)

(0.035)

(0.145)

(0.180)

(0.149)

(0.138)

(0.191)

(0.074)

GDP per capita (log, 2007)

−0.030

−0.023

−0.334

−0.173*

0.127

−0.017

−0.138

−0.179*

−0.147

−0.127

−0.339*

−0.069*

(0.112)

(0.037)

(0.230)

(0.095)

(0.305)

(0.016)

(0.133)

(0.106)

(0.153)

(0.087)

(0.184)

(0.038)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Country dummies

No

No

No

No

No

No

No

No

No

No

No

No

Regional dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

(Pseudo) R-squared

0.0583

0.0924

0.1611

0.1817

0.2636

0.1325

0.0913

0.1693

0.0861

0.1476

0.1945

0.1999

N

665

665

665

665

665

665

665

665

665

665

665

665

  1. Note: Dependent variable is the total number of reforms for each category identified. Standard errors in parenthesis are clustered at the country level.
  2. */**/*** significant at the 10, 5 and 1 per cent