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Table 7 Determinants of the total number of labour market reforms in developed economies

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

 

Total reforms

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

NBREG

OLS

Unemployment (lag)

0.052*

0.161

−0.023

−0.020

0.090***

0.181*

0.169***

0.052**

0.034

0.109

0.075***

0.135

0.019

0.026

(0.027)

(0.115)

(0.030)

(0.022)

(0.032)

(0.097)

(0.035)

(0.022)

(0.027)

(0.096)

(0.029)

(0.082)

(0.032)

(0.037)

Unemployment (difference)

0.130**

0.419*

0.011

0.012

0.157**

0.407**

0.197*

0.076*

0.122*

0.342*

0.187**

0.285**

0.085

0.134

(0.063)

(0.206)

(0.079)

(0.064)

(0.071)

(0.170)

(0.110)

(0.041)

(0.065)

(0.182)

(0.073)

(0.129)

(0.070)

(0.093)

Gap growth (lag)

0.002

0.067

−0.038

−0.025

0.024

0.091

0.075

0.020

−0.003

0.047

0.010

0.045

0.001

0.022

(0.045)

(0.128)

(0.045)

(0.035)

(0.052)

(0.100)

(0.090)

(0.014)

(0.047)

(0.124)

(0.059)

(0.098)

(0.044)

(0.041)

Fiscal consolidation

0.100

0.178

0.225

0.194

0.095

−0.016

−0.033

−0.002

0.084

0.180

0.103

0.007

0.128

0.171

(0.206)

(0.666)

(0.240)

(0.205)

(0.237)

(0.557)

(0.354)

(0.089)

(0.225)

(0.629)

(0.236)

(0.460)

(0.202)

(0.237)

Fixed exchange

0.441*

0.524

0.526**

0.368***

0.521

0.156

−0.006

−0.034

0.491*

0.558

0.188

0.138

0.779***

0.385**

(0.252)

(0.447)

(0.207)

(0.118)

(0.366)

(0.390)

(0.469)

(0.070)

(0.264)

(0.410)

(0.278)

(0.305)

(0.274)

(0.179)

Election year

−0.045

−0.164

0.295

0.154

−0.390

−0.319

−0.561

−0.054

−0.053

−0.110

−0.076

−0.142

−0.019

−0.022

(0.200)

(0.417)

(0.259)

(0.178)

(0.248)

(0.314)

(0.590)

(0.088)

(0.217)

(0.389)

(0.245)

(0.290)

(0.251)

(0.176)

Post-election

0.111

0.278

0.288

0.212

−0.038

0.066

−0.471

−0.047

0.148

0.325

−0.103

0.168

0.273

0.110

(0.203)

(0.497)

(0.234)

(0.173)

(0.273)

(0.390)

(0.387)

(0.067)

(0.231)

(0.494)

(0.305)

(0.388)

(0.208)

(0.177)

Ideology

0.435**

0.429

0.324

0.203

0.430*

0.225

0.240

0.056

0.468**

0.372

0.538**

0.355

0.265

0.073

(0.182)

(0.414)

(0.246)

(0.171)

(0.245)

(0.299)

(0.392)

(0.078)

(0.196)

(0.387)

(0.210)

(0.291)

(0.229)

(0.169)

GDP per capita (log, 2007)

−0.721***

−0.735

−0.487**

−0.330**

−0.984***

−0.405

0.261

0.137

−0.820***

−0.872

−0.712**

−0.361

−0.749***

−0.374*

(0.261)

(0.619)

(0.208)

(0.124)

(0.363)

(0.531)

(0.440)

(0.101)

(0.274)

(0.545)

(0.330)

(0.444)

(0.265)

(0.217)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Regional dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Country dummies

No

No

No

No

No

No

No

No

Yes

Yes

No

No

No

No

(Pseudo) R-squared

0.0910

0.2111

0.0827

0.1460

0.1134

0.2190

0.2025

0.2219

0.0847

0.1905

0.0926

0.1936

0.1104

0.1748

N

245

245

245

245

245

245

245

245

245

245

245

245

245

245

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