Table 5 Baseline equation for the difference in unemployment

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

	All countries				Developed economies				Developing economies
Reforms decreasing (lag)	0.013		0.014		0.039		0.043		−0.053		−0.063
Reforms decreasing (lag)	(0.028)		(0.028)		(0.035)		(0.038)		(0.046)		(0.047)
Reforms increasing (lag)		−0.007	−0.014			0.011	−0.005			0.024	0.039*
Reforms increasing (lag)		(0.030)	(0.034)			(0.074)	(0.084)			(0.024)	(0.022)
Reform stance (lag)				0.024				0.033				−0.033
Reform stance (lag)				(0.024)				(0.038)				(0.022)
Gap growth	−0.181***	−0.173***	−0.178***	−0.185***	−0.342***	−0.337***	−0.340***	−0.352***	−0.096***	−0.097***	−0.096***	−0.098***
Gap growth	(0.009)	(0.010)	(0.010)	(0.009)	(0.035)	(0.034)	(0.035)	(0.034)	(0.007)	(0.007)	(0.007)	(0.007)
EPL indicator	0.007**	0.007**	0.007**	0.007**	0.005	0.004	0.005	0.005	0.005	0.005	0.004	0.004
EPL indicator	(0.003)	(0.003)	(0.003)	(0.003)	(0.007)	(0.007)	(0.007)	(0.008)	(0.005)	(0.005)	(0.005)	(0.005)
Tax rate	0.003	0.003	0.003	0.004	0.020*	0.018	0.021*	0.020	−0.006**	−0.006*	−0.006**	−0.006*
Tax rate	(0.004)	(0.004)	(0.004)	(0.004)	(0.012)	(0.012)	(0.012)	(0.012)	(0.003)	(0.003)	(0.003)	(0.003)
Year dummies	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Country dummies	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Regional dummies	No	No	No	No	No	No	No	No	No	No	No	No
N	372	372	372	372	144	144	144	144	228	228	228	228

Note: Dependent variable is the annual change in unemployment (in percentage points). GLS model correcting for panel heteroscedasticity and autocorrelation (AR1)
*/**/*** significant at the 10, 5 and 1 per cent

Back to article page