# **Table 4. Use of Labor, Baseline Model**

Dependent variable: log of employment ratio, ln(E/WAP)

||**(1)**<br>**FE**<br>**1996-**<br>**2013**|**(2)**<br>**RE**<sup>**a**</sup><br>**1996-**<br>**2013**|**(3)**<br>**RE**<sup>**b**</sup><br>**1996-**<br>**2013**|**(4)**<br>**RE**<br>**1996-**<br>**2013**|**(5)**<br>**RE**<br>**1996-**<br>**2013**|**(6)**<br>**RE**<br>**1996-**<br>**2013**|**(7)**<br>**RE**<br>**1996-**<br>**2013**|**(8)**<br>**RE**<br>**1996-2013**|**(9)**<br>**RE**<br>**1996-2013**|**(10)**<br>**RE**<br>**1996-2013**|
|---|---|---|---|---|---|---|---|---|---|---|
|**Pillar 1**||||||||-0.009<br>(-0.55)|0.006<br>(0.32)|-0.007<br>(-0.42)|
|**Pillar 2**||||||||0.00004**<br>*|0.00004**<br>*|0.00003**<br>*|
|||||||||(5.40)|(5.92)|(4.65)|
|**Pillar 3**||||||||<br>-0.0006***<br>(-2.14)|<br>-0.0006***<br>(-2.04)|<br>0.00004<br>(0.22)|
|**Pillar 4**|0.006*<br>**|0.006**<br>*|0.007**<br>*|0.006**<br>*|0.007**<br>*|0.006**<br>*|0.006**<br>*|<br>0.005***|<br>0.006***|<br>0.005***|
||(12.79)|(12.77)|(12.22)|(12.61)|(11.78)|(12.59)|(12.60)|(9.53)|(10.24)|(9.52)|
|**Pillar 5,6**|-0.023<br>(-0.37)|0.0416<br>(0.81)|-0.0350<br>(-0.92)|0.0520<br>(0.99)|0.0614<br>(1.28)|0.0562<br>(1.12)|0.0542<br>(1.07)|0.0586*<br>(1.41)|0.0573*<br>(1.41)|0.0978***<br>(2.47)|
|**Pillar 7**|||||||||||
|Tax rate|-<br>0.185*<br>**|-<br>0.205**<br>*|-<br>0.156**<br>*|-<br>0.198**<br>*|-<br>0.206**<br>*|-<br>0.204**<br>*|-<br>0.204**<br>*|-0.213***|-0.212***|-0.194***|
|Regula-<br>tory<br>lit|(-4.31)<br>0.069*<br>**|(-4.89)<br>0.077**<br>*|(-5.96)<br>0.058**<br>*|(-4.70)<br>0.076**<br>*|(-5.01)<br>0.074**<br>*|(-4.90)<br>0.077**<br>*|(-4.82)<br>0.076**<br>*|(-4.78)<br>0.064***|(-5.02)<br>0.052***|(-4.30)<br>0.066***|
|quay<br>Tariffs|(3.68)|(4.23)|(4.56)|(4.20)<br>-0.001<br>(-1.31)|(4.09)|(4.35)|(4.11)|(3.06)|(2.56)|(3.14)|
|Openness|||||0.00001<br>(0.08)|-0.00012<br>(-0.77)|-0.00013<br>(-0.80)|-0.00004<br>(-0.28)|0.00010<br>(0.59)|0.00005<br>(0.31)|
|**Pillar 8**|||||||||||
|Women|-<br>0.046*<br>**|-<br>0.034**<br>*|-<br>0.021**<br>*|-<br>0.033**<br>*|-<br>0.029**<br>*|-<br>0.031**<br>*|-<br>0.031**<br>*|-0.015|-0.014|-0.018*|
||(-2.63)|(-2.30)|(-2.27)|(-2.27)|(-2.10)|(-2.20)|(-2.18)|(-1.26)|(-1.21)|(-1.56)|
|CBR|0.091|0.102*|0.008|0.0965*|0.129**|0.0964*|0.0952*|0.0644|0.0554|0.0602|
||(1.28)|(1.46)|(0.20)|(1.37)|(1.83)|(1.36)|(1.33)|(0.96)|(0.83)|(0.89)|
|**Pillar 9**||||||||0.0236*|0.0171|0.0220|
|||||||||(1.33)|(0.99)|(1.22)|
|**Pillar** **11**|0.0002|0.0003||0.0003|0.0002|0.0003|0.0003|0.0004*|0.0002|0.0003|
||(1.07)|(1.18)||(1.22)|(0.69)|(1.17)|(1.17)|(1.53)|(0.86)|(1.05)|
|**Pillar 12**|0.009*|0.00806<br>*||0.00831<br>*|0.00336|0.00779<br>*|0.00772<br>*|0.00431|-0.00319|0.00825*|
||(1.29)|(1.45)||(1.49)|(0.44)|(1.41)|(1.37)|(0.69)|(-0.38)|(1.33)|
|EU|0.0001|0.0001||0.004|0.0111||0.0066|0.0306|0.0257|-0.0152|
||(0.00)|(0.00)||(0.05)|(0.16)||(0.09)|(0.56)|(0.47)|(-0.29)|
|Time|<br>Yes|<br>Yes|No|<br>Yes|<br>No|Yes|<br>Yes|<br>Yes|<br>No|<br>No|
|trend|||||||||||
|<br>Year|No|No|Yes|No|Yes|No|No|No|Yes|No|
|effect|||||||||||
|Constant|Yes|Yes|Yes|Yes|Yes|Yes|Yes|Yes|Yes|Yes|
|Obs|240|239|397|238|239|239|239|237|237|237|
|Wald test|259.42|366.2|4184.78|367.1|411.9|357.8|358.5|356.8|431.7|333.5|
|P value|0.0000|0.0000|0.0000|0.0000|0.0000|0.0000|0.0000|0.0000|0.0000|0.0000|

_Note_ : _t_ statistics in parentheses; * p<0.2, ** p<0.1, *** p<0.05. a In the current specification, the initial hypothesis that individual effects are adequately modelled by a random-effects model cannot be rejected: the Hausman test chi-sq 6.98, with p-value 0.5389. b In the current specification, the initial hypothesis that there is no cross-sectional dependence cannot be rejected: Pesaran’s test of cross-sectional independence chi-sq is -2.053, with Pr. 1.96.

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