RW I:Discussion Papers - Rheinisch-Westfälisches Institut für ...

Table 9: Unemployment Consequences of Wage Rigidities
Dependent Variable:
∆Unemployment Ratet+1 ∆Unemployment Ratet+2
Intercept 1.183** .278 -.789* .200 .310 -.119 -.207 1.264** -.241 -.145
(3.43) (0.90) (2.31) (0.52) (1.01) (0.39) (0.69) (3.96) (0.64) (0.48)
Linear Trend x 100 -.040* .005 .017** .007 .002 -.024 .027 .079** .029 .024
(2.40) (0.33) (3.30) (0.45) (0.18) (1.65) (1.93) (4.97) (1.78) (1.65)
Total Wage Sweep-Upt -.062 -.012 .213 -.023 .253* .226* .484** .223*
(0.49) (0.12) (1.69) (0.20) (2.27) (2.07) (4.02) (2.02)
Nominal Wage Sweep-Upt -1.148 -.819
(1.31) (0.95)
Real Wage Sweep-Upt -.028 .216*
(0.25) (1.98)
GDP Growtht+i -.372** -.365** -.362** -.349** -.359** -.342** -.341** -.328**
(10.00) (11.42) (11.02) (10.30) (11.04) (10.67) (10.37) (9.62)
Productivity Growtht -.331** -.322**
(5.63) (5.62)
GDP Deflatort+i .024 .010
(0.34) (0.15)
∆Unemployment Ratet .172** .347** .178** .184** .164** .317** .167** .159**
(3.64) (6.22) (3.53) (3.83) (3.53) (5.78) (3.38) (3.40)
1984-Dummy -.005 -.002 .001 -.001 -.002 -.001 -.001 -.000 -.001 -.001
(1.40) (0.57) (0.32) (0.49) (0.57) (0.29) (0.24) (0.12) (0.24) (0.26)
R 2 0.319 0.439 0.221 0.439 0.443 0.421 0.452 0.274 0.468 0.455
Observations 252 252 252 252 252 240 240 240 240 240
Notes: Estimates are Within-Group estimates. Absolute t−values in parentheses. **, * are used to indicate that a parameter value is significant
at the one or five percent level, respectively. i =1, 2 for estimations of ∆Unemploymentt+1 and ∆Unemploymentt+1, respectively.
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