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Table 5 Asymmetric short-run relation between manufacturing and 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) (3) (4)
  Error correction model Error correction model (−)
  Positive Negative Large government sector Small government sector
Dependent variable: manufacturing compensations, change (log)     
∆ real government compensations p.e. 0.412** 0.409** 0.386* 0.413**
  [7.392] [6.114] [3.078] [7.143]
∆ productivity in manufacturing 0.285** 0.300** 0.347** 0.222
  [3.497] [3.852] [4.409] [1.547]
∆ unemployment rate −0.00226* −0.00234 −0.00347* −0.000848
  [−2.205] [−1.641] [−2.414] [−0.469]
Lagged error correction term (+) −0.314**    
  [−2.963]    
Lagged error correction term (−)   −0.330** −0.253+ −0.354**
   [−4.296] [−2.257] [−4.276]
Constant 0.0228** 0.00974** 0.0135** 0.00825
  [5.549] [4.193] [5.669] [1.826]
Observations 407 407 193 214
R2 0.314 0.319 0.429 0.255
Number of countries 17 17 8 9
  1. Estimation method: dynamic OLS with fixed effects and Newey West standard errors (not shown) 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