Table 7

Panel regression estimates for expenditures on the unemployment function as an independent variable

Model 21Model 22Model 23Model 24
Dependent variablelnFIEBinTElnFIEBinFElnFIECinTEllFIECinFE
constant0.049 (1.425)1.529 (1.206)−1.724 (1.739)−0.271 (1.432)
Independent variable
lnU0.081 (0.052)0.035 (0.044)0.132* (0.064)0.115* (0.053)
Control variables
lnGini0.697 (0.367)0.379 (0.319)1.177* (0.467)0.935* (0.385)
lnGE−0.265 (0.222)−0.057 (0.189)−0.285 (0.251)−0.149 (0.207)
lnFU−0.139* (0.055)−0.128** (0.046)−0.177** (0.066)−0.175** (0.054)
Fit statistics of models
Breusch-Pagan testχ2 (1) = 1171.76 p = 0χ2 (1) = 1195.41 p = 0χ2 (1) = 1230.56 p = 0χ2 (1) = 1220.77 p = 0
Hausman testχ2 (4) = 8.608 p = 0.072χ2 (4) = 9.980 p = 0.040χ2 (4) = 10.686 p = 0.030χ2 (4) = 13.932 p = 0.007
EffectsrandomfixedFixedfixed
No. of countries24242121
No. of observations362362294294
F F(4, 334) = 2.147 p = 0.075F(4, 269) = 3.572 p = 0.007F(4, 269) = 4.199 p = 0.003
χ2χ2(4) = 10.473 p = 0.033   
LSDV R2 0.9230.8910.923
Within R2 0.0250.0500.059
“Between” variance0.566   
“Within” variance0.075   

Note(s): Standard errors in parentheses, ***p < 0.001; **p < 0.01; *p < 0.05

Source(s): Authors’ own work

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