Table 1.

Error correction times series estimates regressing change in inequality on lagged inequality, lagged institutional protections, and changes in institutional protections

Short-term impact of institutional protectionsLong-term impact of institutional protectionsP value: long-term impactModel fit (adj. r2)Country years
Proportion of total inequality between workplaces
 All sectors−0.032 (0.039)−0.071 (0.014)0.0000.732162
 Private sector−0.044 (0.043)−0.104 (0.012)0.0000.739161
 Public sector0.015 (0.039)−0.069 (0.023)0.0140.490117
Between-workplace variance
 All sectors−0.021 (0.019)−0.182 (0.009)0.0000.881162
 Private sector−0.023 (0.024)−0.195 (0.009)0.0000.868161
 Public sector−0.005 (0.013)−0.129 (0.009)0.0000.810117
Within-workplace variance
 All sectors0.001 (0.018)−0.068 (0.009)0.0000.736162
 Private sector0.005 (0.020)−0.061 (0.009)0.0000.738161
 Public Sector0.013 (0.031)−0.059 (0.012)0.0010.514117
  • Table reports coefficients, with SEs in parentheses. The institutional scale is available until 2010, and so our analyses begin with the first observation for a country and end in 2010. Israel was not included because of missing information on employment protection legislation. For all sectors and private sector estimations, Song et al. (4) estimates were used; for public sector models, US Census estimates were used. All models control for yearly unemployment rates and labor force participation and are robust to additional statistical control for changes in female labor force participation as well as jackknife estimations.