Unemployment in an Interdependent World

Table 2: The role of foreign labor market distortions

Dep.var.: level of unemployment rate

(1)        (2)

(3)

(4)

(5)

(6)

(7)

(8)

b

0.081^a 0.075^a

0.103^a

0.086^a

0.081^a

0.083^a

0.072^a

0.077^a

(0.017)   (0.017)

(0.019)

(0.019)

(0.020)

(0.020)

(0.016)

(0.019)

b*

0.009^a   0.012^a

0.004

0.009^b

0.027

0.057

0.013^a

0.013^a

(0.003)   (0.003)

(0.003)

(0.003)

(0.042)

(0.037)

(0.003)

(0.004)

b* × k*/k

0.016^a

0.011^a

(0.004)

(0.003)

k*/k

-1.216^a

-1.219^a

(0.274)

(0.263)

PMR

0.706^a

0.856^a

0.894^a

0.847^a

0.743^a

0.899^a

(0.193)

(0.207)

(0.219)

(0.217)

(0.188)

(0.209)

Union density

0.008

-0.005

-0.013

-0.009

(0.024)

(0.023)

(0.023)

(0.026)

Union density*

0.062

(0.038)

High corporatism

-1.545^a

-1.617^a

-1.603^a

-1.655^a

-1.558^a

(0.415)

(0.420)

(0.445)

(0.393)

(0.407)

High corporatism^*

2.270

1.371

(2.001)

(1.916)

EPL

0.234

-0.418

-0.574

-0.448

-0.500

(0.343)

(0.371)

(0.380)

(0.383)

(0.382)

EPL^*

-2.465^a

-1.904^b

(0.828)

(0.837)

gap

-0.613^a   -0.608^a

-0.622^a

-0.622^a

-0.627^a

-0.619^a

-0.635^a

-0.642^a

(0.044)   (0.042)

(0.045)

(0.044)

(0.045)

(0.040)

(0.039)

(0.042)

gap^*

-0.021    -0.014

-0.034

-0.024

-0.042

-0.107

0.032

0.005

(0.070)   (0.073)

(0.070)

(0.072)

(0.077)

(0.074)

(0.073)

(0.072)

RMSE

1.191    1.169

1.158

1.130

1.123

1.123

1.134

1.098

adj. R²

0.923    0.926

0.927

0.931

0.932

0.932

0.930

0.935

F

139.5    154.2

136.8

146.8

147.8

151.1

133.3

129.0