This problem employs a dataset on labor markets in 23 OECD countries for the years 1980 to 1998. The variables used in the analysis (followed by descriptive statistics) are: 1. Productivity index [prod] = An index measuring country i's economic output (GDP) per hour worked in year t, normalized such that each country's index = 100 in 1995. 2. Unemployment rate [unr] = The total number of unemployed workers in country i and year t divided by the total number of labor force participants in that country and year, multiplied by 100