Unemployment in an Interdependent World

Table 1: The role of foreign unemployment

Dep.var.: level of unemployment rate		(2) OLS	(3) IV	(4) OLS	(5) IV	(6) OLS	(7) IV	(8) OLS	(9) IV	(10) OLS	(11) IV
	(1) OLS	(2) OLS	(3) IV	(4) OLS	(5) IV	(6) OLS	(7) IV	(8) OLS	(9) IV	(10) OLS	(11) IV
u^*		0.072^a	0.067^b	0.083^a	0.088^a	0.071^a	0.077^a	0.139^a	0.138^a	0.119^a	0.133^a
		(0.028)	(0.030)	(0.029)	(0.032)	(0.025)	(0.028)	(0.032)	(0.039)	(0.026)	(0.030)
u^* × k^* /k								0.049^b	0.162^a	0.056^b	0.145
								(0.023)	(0.094)	(0.023)	(0.120)
k^*/k								-1.010^a	-1.622^a	-0.986^a	-1.536^b
								(0.248)	(0.484)	(0.241)	(0.651)
b	0.091^a			0.085^a	0.098^a	0.092^a	0.104^a	0.075^a	0.100^a	0.085^a	0.102^a
	(0.019)			(0.020)	(0.019)	(0.018)	(0.017)	(0.020)	(0.022)	(0.017)	(0.019)
PMR	0.745^a			0.878^a	0.948^a	0.774^a	0.868^a	0.917^a	0.927^a	0.789^a	0.880^a
	(0.198)			(0.212)	(0.203)	(0.187)	(0.175)	(0.214)	(0.214)	(0.183)	(0.170)
High corporatism	-1.739^a			-1.615^a	-1.827^a	-1.581^a	-1.810^a	-1.616^a	-1.712^a	-1.597^a	-1.693^a
	(0.412)			(0.420)	(0.394)	(0.367)	(0.353)	(0.407)	(0.387)	(0.357)	(0.379)
Union density	-0.001			-0.004	-0.005			-0.013	0.004
	(0.023)			(0.023)	(0.022)			(0.026)	(0.028)
EPL	-0.193			-0.419	-0.314			-0.506	-0.180
	(0.340)			(0.367)	(0.351)			(0.375)	(0.425)
gap	-0.620^a	-0.646^a	-0.632^a	-0.621^a	-0.611^a	-0.621^a	-0.609^a	-0.624^a	-0.615^a	-0.620^a	-0.618^a
	(0.044)	(0.046)	(0.044)	(0.044)	(0.039)	(0.040)	(0.035)	(0.043)	(0.039)	(0.038)	(0.034)
* gap^*				0.024	0.067	0.020	0.060	0.148	0.423^a	0.151	0.387
				(0.075)	(0.070)	(0.072)	(0.067)	(0.100)	(0.218)	(0.100)	(0.285)
2nd stage statistics
RMSE	1.134	1.234	1.139	1.129	1.010	1.168	1.061	1.106	0.998	1.145	1.062
adj. R²	0.930	0.917	0.919	0.931	0.935	0.926	0.929	0.934	0.937	0.929	0.929
F	146.7	125.2		147.4		155.4		134.2		139.1
1st stage statistics (p-values)
partial R²(u^*)			0.757		0.752		0.777		0.6801		0.7561
partial R² (u^* × k^* /k)									0.0636		0.0239
χ²-overidentification			0.889		0.792		0.220		0.356		0.437
χ²-endogeneity			0.727		0.947		0.833		0.432		0.542
Robust standard errors in parentheses,^ap <		0.01,^b p	< 0.05,^c p	< 0.1. :	Number of observations: 397			in OLS and 374 in		IV regressions. All

regressions contain a full set of country fixed-effects, year dummies, and an array of orthogonal shocks (TFP, terms of trade, real interest rate,
and labor demand shocks) as additional controls for business cycle comovements. Trade-weighted averages for foreign variables (denoted by
asterisks) are computed using α₁ = α₂ = 1, and δ = 1. In IV regressions, the foreign unemployment rate u* is instrumented by b*_-1,PMR*_-1and gap*_-1. The χ²-endogeneity test tests the null that u* is exogenous (and rejects in all presented IV models). Overidentification is tested
for using the Wooldridge robust Score test (invalidity of instruments or model misspecification is rejected in all presented IV models).

More intriguing information

1. Language discrimination by human newborns and by cotton-top tamarin monkeys
2. Critical Race Theory and Education: Racism and antiracism in educational theory and praxis David Gillborn*
3. Visual Perception of Humanoid Movement
4. National urban policy responses in the European Union: Towards a European urban policy?
5. The Nobel Memorial Prize for Robert F. Engle
6. The name is absent
7. FDI Implications of Recent European Court of Justice Decision on Corporation Tax Matters
8. ISSUES IN NONMARKET VALUATION AND POLICY APPLICATION: A RETROSPECTIVE GLANCE
9. Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry
10. The name is absent