Global Flow of Foreign Aid and Change in Recipients’ Local Labor Institutions

Table 1

Variable descriptions.

Variable	Description	Source	Range
Dependent variables
LI	Labor institutional distance between a pair of recipient and giver, calculated based on scores reported for labor market regulation	EFW	[−6, 6]
HRMW_LI	Subscores for hiring regulations and minimum wage in bilateral distance measures
HFR_LI	Subscores for hiring and firing regulations in bilateral distance measures
CCB_LI	Subscores for centralized collective bargaining rights in bilateral distance measures
HR_LI	Subscores for hours regulations in bilateral distance measures
MCWD_LI	Subscores for the mandated cost of worker dismissal in bilateral distance measures
CONS_LI	Subscores for conscription in bilateral distance measures
Independent variables
Actual_Aid	Actual bilateral aid flow over the recipient’s GDP	AidData	%
Predicted_Aid	Predicted bilateral aid flow over the recipient’s GDP
Control variables
LN_GDP	Ln of GDP in bilateral distance measures	World Bank’s World Development Indicators Database
LN_GDPC	Ln of GDP per capita in bilateral distance measures
Trade	Total trade volume over GDP in bilateral distance measures
LifeExp	The average life expectancy in bilateral distance measures
Urban	Urban population over total population in bilateral distance measures
Instrumental variables
ND	Ln of the number of occurrences of natural disasters plus 1	The International Disasters Database	Ln (n + 1)
AF	Ln of the number of people affected by natural disasters plus 1		Ln (n + 1)
TR	Ln of the number of terrorist attacks on recipient countries plus 1	Global Terrorism Database	Ln (n + 1)