Unemployment Compensation throughout the World: A Comparative Analysis

By Wayne Vroman; Vera Brusentsev | Go to book overview

Appendix C

Regression Estimates of UC Benefit Generosity

Table 3.3 of Chapter 3 displays two sets of estimates of the index of UC benefit generosity, G. The estimates in column (5) are simply means based on data from the 1990s (or for as many years as available). The estimates in column (6) were derived from regression equations. Table C.1 provides details of these regressions. It displays estimated slopes, t-ratios, goodness-of-fit measures (adjusted R2s and standard errors), average cost rates, average unemployment rates, and the years of the estimation periods and the number of observations.

In developing regression-based estimates of G, it was decided to fit homogeneous regressions where the unemployment rate (TUR) explained the average cost rate (B) with no other explanatory variables and no intercept. Thus, the estimated coefficients show overall estimates of G with no controls for possible changes in statutory UC provisions or other factors that may have occurred during the estimation periods. Use of this specification means that the adjusted R2 can be substantially negative, indicating that the regression performs worse than estimating simply the mean of the dependent variable (B). In fact, four fits are so poor that the adjusted R2 falls below — 0.25.

Note also that several regressions are based on very few data points. Eight regressions had fewer than 10 observations, 4 from CEE- FSU countries.

-233-

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Unemployment Compensation throughout the World: A Comparative Analysis
Table of contents

Table of contents

  • Unemployment Compensation Throughout the World - A Comparative Analysis *
  • Contents v
  • Figures vii
  • Tables viii
  • 1 - Introduction 1
  • Notes 6
  • Part 1 - A Global Perspective *
  • 2 - Economic Performance and Unemployment 9
  • Notes 42
  • 3 - Unemployment Protection 45
  • Notes 75
  • Part 2 - Regional Aspects of Unemployment Protection *
  • 4 - Unemployment Compensation in the Oecd-20 Countries 81
  • Notes 106
  • 5 - Unemployment Compensation in the Cee-Fsu Countries 109
  • Notes 125
  • 6 - Unemployment Compensation in East and South Asia 127
  • Notes 143
  • 7 - Unemployment Compensation in Latin American and Caribbean Countries 145
  • Notes 165
  • Part 3 - Problem Areas for Unemployment Compensation Programs *
  • 8 - Three Problem Areas for Unemployment Compensation Programs 169
  • Notes 210
  • 9 - Conclusion 213
  • Appendix A - Labor Market Data for 150 Countries 219
  • Appendix B - Output Changes and Employment Changes 227
  • Notes 232
  • Appendix C - Regression Estimates of Uc Benefit Generosity 233
  • Appendix D - Uc Provisions and Uc Costs in Cee-Fsu Countries 235
  • Appendix E - Determinants of Long-Term Unemployment Percentages 245
  • Notes 252
  • References 253
  • The Authors 259
  • Index 261
  • About the Institute 273
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