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Table 2 Regression of employment on real GDP (Y) (cyclical components, 1975–2008). Source: Authors' own calculations using data from Deutsche Bundesbank, Federal Employment Agency (BA); data from 1976 to 1992 are for West Germany, from 1993 to 2008 for Germany; D1992 is a dummy for unification (D1992 \( = \) 1 for the year 1992 and D1992 \( = \) 0 elsewhere

From: The German labor market response in the world recession – de-mystifying a miracleDie Reaktion des deutschen Arbeitsmarktes auf die Weltrezession – Entzauberung eines Wunders

Variable

Dep. variable employment (CC)

 

Coef.

t-stat.

Constant

0.159

1.696

Employment CC (t−1)

0.210

1.914

Real GDP CC

0.673

8.048

Real GDP CC (t−1)

0.298

2.897

Real GDP CC (t−2)

0.165

2.108

D1992

−4.595

−7.913

Test statistics

Adj. R 2

0.882

N

32

s.e.

0.521

LM (1) x2 [p-val.]

0.729

[0.392]

LM (2) x2 [p-val.]

2.637

[0.267]

  1. Notes: Employment (L) is measured as persons being eligible to social contributions (Sozialversicherungspflichtige Beschäftigte); real GDP  (Y) is measured as a  chain index; the cyclical components (CC) of the growth rates of the variables are calculated by a HP-filter with smoothing parameter λ \( = \) 100; lags of the explanatory variables are given in parentheses.