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A Comprehensive Empirical Model of Welfare State Retrenchment
Unformatted Document Text:  Table 1 Panel regression on total social expenditures as percentage of GDP, the net replacement rates of sickness and the net replacement rate of unemployment insurance from 1971 to 2000 Total social expenditures Net replacement Net replacement As percentage of GDP rates of sickness rates of Unemployment ----------------------------------------------------------------------------------- Left Cabinet 0.0004893 -0.02 -0.007 Constitutional -1.49*** -0.0000929 0.008Structure (VetoPoints) Industry value -0.53*** -0.0027 -0.004*added shares labor force shares -0.29 0.612 -0.07 Unemployment rate 0.215*** -0.006* -0.003 GDP growth rate -0.27*** -0.0017 -0.004* Deficit as 0.0025 0.0002 0.001***percentage of GDP Military expenditure -0.19 0.036** 0.044*** Trade as a 0.005 0.0002 0.0005percentage of GDP FDI outflow as 0.075 -0.003 0.007*percentage of GDP Age dependency 4.85 0.82** 0.84*** Secondary enrollment 0.108*** 0.002* 0.003*** Constant 34.88*** -0.14 0.033Significant level: ***=0.001, **=0.01, *=0.05 14

Authors: Sun, Feng.
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Table 1 Panel regression on total social expenditures as percentage of GDP, the net
replacement rates of sickness and the net replacement rate of unemployment
insurance from 1971 to 2000

Total social expenditures Net replacement Net replacement
As percentage of GDP rates of sickness rates of Unemployment
-----------------------------------------------------------------------------------
Left Cabinet 0.0004893 -0.02 -0.007
Constitutional -1.49*** -0.0000929 0.008
Structure (Veto
Points)
Industry value -0.53*** -0.0027 -0.004*
added shares
labor force shares -0.29 0.612 -0.07
Unemployment rate 0.215*** -0.006* -0.003
GDP growth rate -0.27*** -0.0017 -0.004*
Deficit as 0.0025 0.0002 0.001***
percentage of GDP
Military expenditure -0.19 0.036** 0.044***
Trade as a 0.005 0.0002 0.0005
percentage of GDP
FDI outflow as 0.075 -0.003 0.007*
percentage of GDP
Age dependency 4.85 0.82** 0.84***
Secondary enrollment 0.108*** 0.002* 0.003***
Constant 34.88*** -0.14 0.033
Significant level: ***=0.001, **=0.01, *=0.05
14


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