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

8 TABLES AND FIGURES 31
Table 4: Correlation between economic factors and LMI
Economic Factors
VARIABLES RR EF2 EF3 EF4
EPL 0.92
EPR v1 0.25
EPT v1 0.93
RR 1.00
COOD 0.78
GOVINT 0.49
LEVEL 0.94
EXT 0.26
MIN_W 0.55
UD 0.82
UC 0.30
CONC 0.78
CENT 0.84
E con om ic factors are: E F 1= R R = rep lacem ent rates in dex , E F 2= lab or u nion factors, EF3= wage b argain ing factors, E F 4= em p loym ent p rotection
factors, and M P C 1 d en otes th e p rin cipal com p on ent of th e m acro econ om ic series. LM Is are d efi n ed as: EP L :strictn ess of em ploym ent protection
legislation ; E P R : em p loym ent protection on p erm an ent contracts; EP T : em ploym ent protection on tem p orary contracts; R R : rep lacem ent rates;
U D : un ion d en sity; U C : un ion coverage; W C O O R D : degree of co ord in ation in the wage b argain ing p ro cess; G OV IN T , govern m ent involvem ent in
wage bargain in g; LE V EL :degree of b argainin g centralization ; E X T : extent to w h ich collective agreem ents are ap p lied to n on-u nion ized workers;
M IN WA G E : d egree of govern m ent intervention in settin g th e m in im u m wage; C O N C : average concentration m easu re of u n ionization ; C EN T :
m easu res also con centration .