Do labor market institutions matter for business cycles?∗ - European ...

8 TABLES AND FIGURES 25
0.2
correlation output and
employment
0.1
0
-0.1
-0.2
-0.3
-0.4
-0.5
-0.6
sf1 sf2 sf3 sf4 RR ef2 ef3 ef4
growth rates HP data BP data
0.8
0.6
0.4
0.2
0
-0.2
-0.4
correlation wages and labor
productivity
sf1 sf2 sf3 sf4 RR ef2 ef3 ef4
-0.6
correlation output and labor
productivity
-0.8
growth rates HP data BP data
0.3
0.2
correlation employment and
labor productivity
0.1
0
-0.1
-0.2
sf1 sf2 sf3 sf4 RR ef2 ef3 ef4
growth rates HP data BP data
0
-0.1
-0.2
-0.3
-0.4
-0.5
sf1 sf2 sf3 sf4 RR ef2 ef3 ef4
correlation output and
inflation
-0.6
growth rates HP data BP data
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8
sf1 sf2 sf3 sf4 RR ef2 ef3 ef4
growth rates HP data BP data
Figure 3b: Spearman partial rank correlations between LMI and business cycle
correlations, different detrending methods
A n * on top of a colu m n ind icates correlation s that are sign ifi cantly d iff erent from zero at th e 5 p ercent level. S F 1:ind ex overall rigid ity,
SF 2:un ion factor, SF 3:wage settin g factor, S F 4:fl ow restriction s factor, E F 1= R R = rep lacem ent rates in dex, E F 2= lab or u nion factors, E F 3= wage
bargain in g factors, E F 4= em p loym ent protection factors. Statistical and econ om ic factors are con stru cted u sin g the average valu es of in stitution s
b etween 1960 an d 1970. grow th rates stand s for d ata that are in 4th diff eren ce, H P d ata stan d s for H o drick -P rescott fi ltered d ata and B P d ata
are d ata d etrend ed u sin g a b ass p ass fi lter.