Skip to main content
IZA Journal of European Labor Studies

Table 8 Validity of the long-run relationships

From: More alike than different: the Spanish and Irish labour markets before and after the crisis

ARDL

 

Johansen

LR test

ec m t−1

CV

r

CV

 

[LD]

(n w k)

 

(n w k)

 

Spain:

    

-0.34 (0.000)

(1 −1.06 0.69)

2

(1 −1.20 0.80)

χ2(2)=3.52 [0.172]

Ireland:

    

-0.20 (0.029)

(1 −0.62 0.65)

2

(1 −0.59 0.61)

χ2(1)=1.63 [0.201]

[WS]

(w pr)

 

(w pr)

 

Spain:

    

-0.22 (0.000)

(1 0.66)

1

(1 2.89)

χ2(1)=0.50 [0.480]

Ireland:

    

-0.32 (0.003)

(1 0.41)

1

(1 0.35)

χ2(1)=2.67 [0.125]

[LF]

(l w po)

 

(l w po)

 

Spain:

    

-0.09 (0.074)

(1 0.44)

1

(1 0.68)

χ2(2)=4.30 [0.116]

Ireland:

    

-0.34 (0.006)

(1 0.31 1.09)

1

(1 2.85 0.40)

χ2(2)=0.24 [0.889]

  1. Notes: CV = cointegrating vector; r = number of CVs ;p-values in parentheses; moreover, LD is labour demand, WS is wage-setting, and LF is labour force; 5% critical values for the LR test are: χ2(1) = 3.84; χ2(2) = 5.99.
Back to article page