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Table 1 Long-run and short-run relation between manufacturing and general government compensations per employee, EU countries 1980–2013

From: Co-movements between public and private wages in the EU: what factors and with what policy implications?

  (1) (2)
  Dynamic long-run relation Error correction model
Dependent variable: log of manufacturing compensation per employee, level (long-run relation) and change (ECM)
∆ log government compensations p.e.   0.249***
   [7.117]
∆ log productivity in manufacturing   0.188***
   [5.426]
∆ unemployment rate   −0.00162*
   [−1.578]
∆ log consumer price index   0.693***
   [19.51]
Log of consumer price index 0.687***  
  [9.410]  
Log of government compensations p.e. 0.435***  
  [7.968]  
Log of productivity in manufacturing 0.209***  
  [9.004]  
Unemployment rate 0.0057***  
  [3.421]  
Lagged error correction term   −0.122***
   [−3.140]
Constant −1.087*** 0.00715***
  [−7.009] [3.273]
Observations 407 407
R 2 0.98 0.631
Number of countries 17 17
  1. Estimation method: dynamic OLS with fixed effects and Newey West standard errors and ECM with standard errors robust with respect to heteroskedasticity and non-independence within country clusters. Sample: EU countries, except AT, BG, CY, DE, EL, HR, LT, LV, MT, RO and SI
  2. Robust t-statistics: ***p < 0.01; **p < 0.05; *p < 0.1