<u>Table 6: Cross-country regressions of the effect of social protection response on socio-economic outcomes</u> Note: this table reports estimates from the following regression model: 1 I I I I I 1 2 3I I I I I Where _Scc_ is a socio-economic outcome for country cc _c_ . _JobProtectionSharec_ cc _c_ cc cc cc cc NN = αα+ ββ JJIIJ NNhI II + ππ LLIILLIIDDIINNII + ππ NNI SSI IIJJIIDDII + ππ II + εε Where _Scc c_ . _JobProtectionSharec_ is the share of the social protection pandemic response expenditure that was allocated to measures aimed at job protection in country _c_ . _LogGDPpcc_ is the log of GDP per capita of country _c_ in 2019, expressed in dollars at PPP. _ServicesGDPc_ represents the share of the services sector in the GDP of country _c_ in 2019, expressed in percentage points. _Informalityc_ represents the share of informal output in the GDP of country _c_ in the last available pre-pandemic year, expressed in percentage points. All estimations in columns 2, 4, 6, and 8 are by OLS with robust (HC3) standard errors. Columns 3, 5, 7, and 9 are estimated by 2SLS with robust standard errors. The first stage results are presented in column 1.<sup>***</sup> indicates that the coefficient is significant at 1% level,<sup>**</sup> - at 5% level,<sup>*</sup> - at 10% level. The Stock-Yogo weak identification test critical values are: 10% maximal IV size=16.38 15%=8.96 20%=6.66 25%=5.9363.

||Share<br>response<br>to job pr<br>|of SP<br>allocated<br>otection<br>||Change<br>|in GDP<br>||Chan<br>|ge in employme<br> <br>|nt rate<br>|Change in in<br>|activity r<br>|ate<br>|Cha<br>|nge in p|overty rat<br>|e<br>|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||(<br>First st|1)<br>age IV|(2<br>OL|)<br>S|(3<br>I|)<br>V|(4<br>OL|)<br> <br>S|(5)<br>IV|(6)<br>OLS|(7<br>IV|)<br>|(8)<br>OLS||(9<br>IV|)<br>|
||Coef.|_S. Err._|Coef.|_S. Err._|Coef.|_S. Err._|Coef.|_S. Err. _Coef.|_S. Err._|Coef. _S. Err. _|Coef.|_S. Err._|Coef.|_S. Err._|Coef.|_S. Err._|
|_Social protection response_|||||||||||||||||
|Share of SP response budget allocated<br>to job protection measures|||5.894<sup>**</sup>|_2.267_|14.02|_10.36_|2.527<sup>***</sup>|_0.632_5.803|_4.178_|-2.078<sup>***</sup> _0.487_|-4.765|_3.635_|-2.707<sup>***</sup>|_0.803_|-2.622|_3.822_|
|_Country characteristics_|||||||||||||||||
|Log GDP per capita, 2019|0.119<sup>***</sup>|0.025|1.138<br>|_0.747_|0.159<br>|_1.268_|-0.091<br>|_0.279_-0.486<br>|<br>_0.605_<br>|-0.113_0.236_<br>|0.210<br>|_0.540_<br>|-0.034|_0.253_|-0.044|_0.442_|
|Share of services sector, % of GDP|0.000|0.003|-0.186<sup>*</sup>|_0.108_|-0.197<sup>**</sup>|_0.096_|-0.050<sup>*</sup>|_0.026_-0.055<sup>*</sup>|_0.028_|0.036<sup>*</sup> _0.020_|0.040<sup>*</sup>|_0.022_|_0.029_|_0.026_|0.029|_0.026_|
|Share of informal output, % of GDP<br>(DGE)|-0.007<sup>***</sup>|0.002|-0.011|_0.061_|0.045|_0.10_|-0.039|_0.033_-0.016|<br>_0.037_|0.030<br>_0.028_|0.012|_0.029_|0.025|_0.022_|0.025|_0.033_|
|_Instrumental variable_|||||||||||||||||
|Months elapsed since last general<br>election (March 2020)|-0.003<sup>***</sup>|0.001|||||||||||||||
|Cragg-Donald Wald F statistic|6.0|28|||6.0|28||6|.028||6.0|28|||6.02|8|
|Number of countries<br>|1|26|12|6|12|6|12|6<br>|126|126|12|6|126||12|6|
|R<sup>2</sup>|0.|47|0.1|4|0.|04|0.1|4<br>0|.03|0.17|0.0|7|0.15||0.1|5|

36