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Table 8 Determinants of labour reforms by policy domain in developed economies

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

 

Collective bargaining

Collective dismissals

Permanent contracts

Temporary contracts

Other forms of employment

Working hours

 

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

NBREG

OLS

Unemployment (lag)

0.060**

0.047**

0.118**

0.037

0.048

0.040

0.059

0.012

−0.020

−0.004

0.064*

0.030

(0.028)

(0.020)

(0.051)

(0.031)

(0.037)

(0.041)

(0.039)

(0.012)

(0.038)

(0.010)

(0.035)

(0.019)

Unemployment (difference)

0.255***

0.163***

0.080

0.038

0.053

0.064

0.168

0.078

0.036

0.014

0.093

0.061

(0.064)

(0.054)

(0.114)

(0.043)

(0.091)

(0.072)

(0.135)

(0.061)

(0.086)

(0.023)

(0.086)

(0.047)

Gap growth (lag)

0.063

0.030

−0.098

−0.017

−0.015

0.019

−0.094

−0.008

0.059

0.023

0.048

0.019

(0.072)

(0.031)

(0.109)

(0.025)

(0.056)

(0.052)

(0.062)

(0.022)

(0.072)

(0.025)

(0.085)

(0.024)

Fiscal consolidation

0.095

0.008

−0.120

−0.061

0.144

0.091

−0.273

−0.039

0.295

0.104

0.144

0.075

(0.294)

(0.174)

(0.379)

(0.156)

(0.288)

(0.263)

(0.510)

(0.151)

(0.319)

(0.107)

(0.290)

(0.125)

Fixed exchange

0.189

0.013

0.599

0.024

0.278

0.097

0.778*

0.137

0.798**

0.170**

0.401

0.082

(0.310)

(0.101)

(0.532)

(0.076)

(0.355)

(0.190)

(0.399)

(0.107)

(0.356)

(0.077)

(0.355)

(0.096)

Election year

0.017

0.042

−0.911*

−0.038

−0.033

−0.054

−0.054

−0.040

0.142

0.018

−0.371

−0.092

(0.418)

(0.122)

(0.507)

(0.076)

(0.257)

(0.143)

(0.354)

(0.089)

(0.343)

(0.089)

(0.396)

(0.097)

Post-election

0.454

0.198

0.611*

0.154

−0.116

0.005

−0.145

−0.128

0.084

0.029

−0.016

0.020

(0.295)

(0.131)

(0.333)

(0.095)

(0.324)

(0.192)

(0.579)

(0.153)

(0.333)

(0.093)

(0.337)

(0.114)

Ideology

0.106

0.006

−0.383

−0.068

0.432

0.136

0.418

0.031

0.739**

0.150

0.656*

0.174

(0.315)

(0.111)

(0.403)

(0.068)

(0.294)

(0.151)

(0.325)

(0.069)

(0.343)

(0.092)

(0.337)

(0.118)

GDP per capita (log, 2007)

−0.762**

−0.100

−0.453

−0.004

−0.521

−0.232

−0.857**

−0.111

−1.122***

−0.191***

−0.604*

−0.097

(0.328)

(0.128)

(0.735)

(0.200)

(0.343)

(0.196)

(0.425)

(0.104)

(0.369)

(0.062)

(0.355)

(0.109)

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

0.1183

0.1948

0.1830

0.1307

0.0736

0.1194

0.1056

0.0715

0.1715

0.1456

0.0997

0.1416

N

245

245

245

245

245

245

245

245

245

245

245

245

  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