countries. There was also a suggestion of an increasing long-term trend
in the percent unemployed 12 or more months. More data points are
needed, however, before these findings should be given much weight.
At least the finding on the effect of lagged unemployment seems reasonable in light of the findings from the OECD-20 countries. Also, that
there should be a positive trend toward an increased percentage of long-
term unemployment seems to square with both Figure 8.2 in Chapter
8 and a priori notions about labor market developments in the CEE
Only 11 years of data were available for Switzerland (1991—2001) and just 7
years for Austria (1994 —2000).
The apparent tie in Sweden is due to rounding of t-ratios to one decimal place.
The lagged unemployment rate has a slightly larger t-ratio than the trend.
Significance is present when the absolute value of the t-ratio is 2.0 or larger.
One indication of the differences in estimated trends from levels versus first dif-
ference specifications is the correlation of the trend coefficients across the 18
countries. The simple correlation between the trend coefficients in Table E.1 and
the intercept coefficients in Table E.2 was 0.41, which was not significant at the
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Unemployment Compensation throughout the World: A Comparative Analysis.
Contributors: Wayne Vroman - Author, Vera Brusentsev - Author.
Publisher: W.E. Upjohn Institute for Employment Research.
Place of publication: Kalamazoo, MI.
Publication year: 2005.
Page number: 252.
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