Update on employment protection

A few days ago I showed that Sweden did well during the last few years in employment terms, taking the fall in GDP into account.

A couple of readers were concerned that the employment residual reflected employment protection laws.

So I did a regression of employment protection laws from the OECD and the employment residual. No statistically significant relationship can be established.

Employment protection index, from the OECD (2003).

Tur 3.72
Prt 3.67
Mex 3.13
Fra 3.05
Grc 2.83
Nor 2.56
Deu 2.35
Esp 2.34
Swe 2.24
Bel 2.18
EU15 2.14
Nld 2.12
Kor 2.03
Fin 2.02
Ita 1.95
Aut 1.93
Cze 1.9
Jpn 1.84
Pol 1.74
Hun 1.52
Nzl 1.47
Dnk 1.42
Svk 1.42
Aus 1.19
Che 1.14
Irl 1.11
Can 0.78
Gbr 0.75
USA 0.21