Unemployment in an Interdependent World

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

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