Part 1 | Unemployment rate | Low-skilled unemployment rate | Employment rate | ||||||
OLS (fe) (1) | FGLS (AR1) (2) | IV (3) | OLS (1) | FGLS (AR1) (2) | IV (3) | OLS (1) | FGLS (AR1) (2) | IV (3) | |
Training (policy 1) | − 0.92*** | − 1.09*** | − 1.78*** | − 1.08** | − 1.16*** | − 1.00 | − 0.02 | 0.03 | 1.71*** |
(0.25) | (0.21) | (0.55) | (0.44) | (0.42) | (0.87) | (0.21) | (0.19) | (0.58) | |
Employment incentives (policy 2) | − 1.63*** | − 1.21*** | − 1.19** | − 2.14*** | − 1.81*** | − 2.09** | 1.64*** | 1.01*** | 1.44** |
(0.37) | (0.31) | (0.52) | (0.74) | (0.63) | (0.97) | (0.37) | (0.29) | (0.59) | |
Cluster (policy 3) | − 1.96*** | − 1.80*** | − 1.61*** | − 2.17*** | − 2.34*** | − 2.17** | 0.45** | 0.24 | 1.95*** |
(0.23) | (0.22) | (0.54) | (0.42) | (0.41) | (0.94) | (0.21) | (0.19) | (0.65) | |
Start-up incentives (policy 4) | − 7.96*** | − 5.48*** | − 2.75*** | − 7.78*** | − 7.07*** | − 5.11*** | 0.86 | 1.40** | 3.22*** |
(0.88) | (0.75) | (1.04) | (1.54) | (1.40) | (1.71) | (0.73) | (0.60) | (0.88) | |
PES allocation | − 0.08*** | − 0.05*** | − 0.10*** | 0.03 | 0.00 | 0.06 | 0.01 | 0.01 | 0.04* |
(0.01) | (0.01) | (0.02) | (0.03) | (0.03) | (0.04) | (0.01) | (0.01) | (0.02) | |
Continuity in implementation | 0.01 | 0.01 | − 0.41*** | 0.37*** | 0.14** | − 1.00*** | 0.22*** | 0.12*** | 0.35*** |
(0.01) | (0.01) | (0.07) | (0.09) | (0.06) | (0.14) | (0.04) | (0.03) | (0.06) | |
Correct timing of policies | − 10.85*** | − 0.01 | − 5.24 | 2.14 | 9.54*** | − 0.63 | |||
(2.06) | (1.58) | (4.37) | (2.95) | (2.01) | (1.76) | ||||
Training * PES allocation | − 0.03*** | − 0.03*** | − 0.00 | − 0.04* | − 0.06*** | − 0.10*** | 0.04*** | 0.02** | 0.06*** |
(0.01) | (0.01) | (0.01) | (0.02) | (0.02) | (0.02) | (0.01) | (0.01) | (0.01) | |
Employment incentives * PES allocation | − 0.03* | − 0.03** | − 0.03 | − 0.01 | − 0.03 | − 0.01 | − 0.04*** | − 0.02* | 0.01 |
(0.02) | (0.01) | (0.03) | (0.03) | (0.03) | (0.04) | (0.02) | (0.01) | (0.02) | |
ALMPs * timing | 1.13*** | 1.10*** | 0.86** | 1.23*** | 1.44*** | 1.46** | − 0.33** | − 0.14 | − 1.58*** |
(0.15) | (0.15) | (0.37) | (0.30) | (0.29) | (0.64) | (0.15) | (0.14) | (0.44) | |
Cycle * timing | 0.00 | − 0.00 | − 0.00*** | 0.00 | 0.00 | − 0.00*** | − 0.00 | 0.00 | 0.00 |
(0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | |
Terms of trade | − 0.01 | − 0.01 | 0.01 | − 0.01 | 0.00 | 0.12*** | − 0.01 | − 0.01 | 0.05*** |
(0.01) | (0.01) | (0.01) | (0.03) | (0.03) | (0.03) | (0.01) | (0.01) | (0.02) | |
Population with tertiary education | 0.04*** | 0.03** | 0.02 | 0.03 | 0.05* | − 0.01 | − 0.90*** | − 0.86*** | − 0.71*** |
(0.01) | (0.01) | (0.02) | (0.03) | (0.03) | (0.03) | (0.06) | (0.06) | (0.09) | |
Union density | 0.21*** | 0.21*** | 0.03*** | 0.25*** | 0.23*** | 0.07*** | − 0.15*** | − 0.14*** | 0.02 |
(0.03) | (0.03) | (0.01) | (0.07) | (0.07) | (0.02) | (0.03) | (0.03) | (0.01) | |
EPL for temporary workers | − 0.59*** | − 0.32 | 0.38* | − 1.75*** | − 1.04** | − 1.28*** | − 0.09 | 0.06 | − 0.34 |
(0.20) | (0.20) | (0.20) | (0.49) | (0.45) | (0.36) | (0.21) | (0.19) | (0.25) | |
EPL for regular workers | 1.37** | 0.30 | − 0.59** | − 0.49 | − 0.23 | − 0.61 | − 1.21** | − 1.03** | 1.76*** |
(0.55) | (0.52) | (0.29) | (1.17) | (1.07) | (0.44) | (0.58) | (0.49) | (0.29) | |
Gross replacement rate | 0.07*** | 0.10*** | 0.08*** | 0.04 | 0.05 | 0.08** | − 0.04** | − 0.06*** | − 0.02 |
(0.02) | (0.02) | (0.02) | (0.04) | (0.04) | (0.04) | (0.02) | (0.02) | (0.03) | |
EU | − 6.87*** | 3.16*** | − 2.40 | − 7.22*** | 12.15*** | − 2.24*** | |||
(2.08) | (0.58) | (4.39) | (1.66) | (2.02) | (0.74) | ||||
Time effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Country effects | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Observationsa | 459 | 458 | 323 | 341 | 340 | 303 | 373 | 372 | 332 |
R-squared | 0.85 | – | 0.68 | 0.91 | – | 0.79 | 0.97 | – | 0.90 |
Hansen J-test (p-value) | – | – | 0.30 | – | – | 0.10 | – | – | 0.66 |
Part 2 | Low-skilled employment rate | LFPR | Low-skilled LFPR | ||||||
OLS (fe) (1) | FGLS (AR1) (2) | IV (3) | OLS (1) | FGLS (AR1) (2) | IV (3) | OLS (1) | FGLS (AR1) (2) | IV (3) | |
Training (policy 1) | − 0.23 | − 0.04 | 2.82** | 0.12 | 0.05 | 0.64*** | − 0.94** | − 0.77** | 0.93 |
(0.43) | (0.41) | (1.42) | (0.08) | (0.08) | (0.11) | (0.38) | (0.37) | (1.43) | |
Employment incentives (policy 2) | 2.33*** | 1.71*** | 4.50*** | − 0.08 | 0.06 | − 0.10 | 1.23* | 0.57 | 3.35** |
(0.71) | (0.61) | (1.42) | (0.16) | (0.13) | (0.17) | (0.64) | (0.54) | (1.34) | |
Cluster (policy 3) | 1.66*** | 1.63*** | 5.72*** | − 0.14** | − 0.04 | − 0.32*** | 0.59 | 0.37 | 3.21** |
(0.41) | (0.40) | (1.46) | (0.06) | (0.05) | (0.08) | (0.37) | (0.36) | (1.59) | |
Start-up incentives (policy 4) | 5.00*** | 4.62*** | 9.15*** | 0.18 | 0.26 | − 1.67 | 1.00 | 0.79 | 7.52** |
(1.49) | (1.35) | (2.75) | (0.82) | (0.64) | (1.30) | (1.33) | (1.21) | (2.97) | |
PES allocation | − 0.03 | 0.00 | 0.14** | − 0.05*** | − 0.03*** | − 0.01 | − 0.06** | − 0.03 | 0.16*** |
(0.03) | (0.03) | (0.06) | (0.01) | (0.01) | (0.01) | (0.03) | (0.02) | (0.05) | |
Continuity in implementation | 0.16** | 0.12*** | 0.63*** | 0.23*** | 0.10*** | 0.31*** | 0.05 | 0.03 | 0.36*** |
(0.06) | (0.04) | (0.16) | (0.04) | (0.03) | (0.03) | (0.08) | (0.05) | (0.12) | |
Correct timing of policies | − 0.24 | 5.16 | 3.68** | − 6.40*** | − 5.85 | 1.83 | |||
(4.24) | (3.83) | (1.86) | (0.60) | (3.83) | (3.92) | ||||
Training * PES allocation | 0.10*** | 0.09*** | 0.14*** | 0.08*** | 0.06*** | 0.12*** | |||
(0.02) | (0.02) | (0.04) | (0.02) | (0.02) | (0.04) | ||||
Employment incentives * PES allocation | − 0.06* | − 0.04 | − 0.06 | − 0.08*** | − 0.05** | − 0.11* | |||
(0.03) | (0.03) | (0.07) | (0.03) | (0.03) | (0.06) | ||||
ALMPs * timing | − 0.95*** | − 0.93*** | − 4.01*** | − 0.35 | − 0.16 | − 2.40** | |||
(0.29) | (0.29) | (0.99) | (0.26) | (0.26) | (1.08) | ||||
Cycle * timing | − 0.00*** | − 0.00* | 0.00 | − 0.00*** | − 0.00** | − 0.00 | |||
(0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | ||||
Terms of trade | 0.10*** | 0.08*** | − 0.26*** | 0.00 | 0.00 | 0.06*** | 0.08*** | 0.07*** | − 0.20*** |
(0.03) | (0.03) | (0.04) | (0.01) | (0.01) | (0.02) | (0.03) | (0.03) | (0.05) | |
Population with tertiary education | 0.01 | − 0.01 | 0.01 | 0.02 | 0.00 | 0.03** | 0.03 | 0.00 | 0.05 |
(0.03) | (0.03) | (0.05) | (0.01) | (0.01) | (0.01) | (0.02) | (0.02) | (0.04) | |
Union density | − 0.03 | − 0.13** | 0.03 | − 0.02 | − 0.03 | 0.05*** | 0.14** | 0.04 | 0.05* |
(0.07) | (0.06) | (0.03) | (0.03) | (0.03) | (0.01) | (0.06) | (0.06) | (0.03) | |
EPL for temporary workers | − 0.23 | − 0.44 | 1.66*** | − 0.74*** | − 0.41** | − 0.18 | − 0.99** | − 0.87** | 1.83*** |
(0.48) | (0.44) | (0.59) | (0.25) | (0.20) | (0.25) | (0.43) | (0.39) | (0.62) | |
EPL for regular workers | − 0.59 | − 0.27 | 3.73*** | − 0.42 | − 0.48 | 1.10*** | − 0.96 | − 0.53 | 2.90*** |
(1.12) | (1.00) | (0.80) | (0.59) | (0.47) | (0.24) | (1.02) | (0.93) | (0.72) | |
Gross replacement rate | − 0.06 | − 0.05 | 0.26*** | − 0.05*** | − 0.05*** | 0.01 | − 0.03 | − 0.01 | 0.41*** |
(0.04) | (0.04) | (0.07) | (0.02) | (0.02) | (0.02) | (0.03) | (0.04) | (0.07) | |
EU | − 7.44* | 16.02*** | 6.65*** | − 2.34** | − 11.76*** | 16.76*** | |||
(4.19) | (2.38) | (1.96) | (0.96) | (3.89) | (2.09) | ||||
Time effects | YES | YES | YES | YES | YES | YES | YES | YES | YES |
Country effects | YES | YES | YES | YES | YES | YES | YES | YES | YES |
Observationsa | 335 | 334 | 295 | 343 | 342 | 319 | 331 | 330 | 317 |
R-squared | 0.97 | – | 0.74 | 0.96 | – | 0.84 | 0.97 | – | 0.72 |
Hansen J test (p value) | – | – | 0.18 | – | – | 0.13 | – | – | 0.11 |