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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.