The impact of sectoral minimum wage laws on employment, wages, and hours of work in South Africa

Bhorat, Haroon; Kanbur, Ravi; Mayet, Natasha

doi:10.1186/2193-9020-2-1

IZA Journal of Labor & Development

Table 7 Usual hours worked per week, difference-in-differences (Dependent variable: Number of usual weekly hours)

From: The impact of sectoral minimum wage laws on employment, wages, and hours of work in South Africa

	Retail			Domestics			Forestry			Taxi			Security
	I	II	III	I	II	III	I	II	III	I	II	III	I	II	III
Post	−0.315^**	−1.444^***	−1.346^***	−1.016	−1.255	−1.063	−1.382^***	−1.285	−1.048	0.474	0.619	0.656	−1.347^***	−2.174^***	−2.339^***
Post	(0.137)	(0.357)	(0.357)	(0.607)	(0.861)	(0.826)	(0.299)	(1.360)	(1.497)	(0.849)	(2.585)	(2.848)	(0.476)	(0.677)	(0.635)
Sector	3.163^***			−1.272			0.516			20.17^***			11.75^***
Sector	(0.304)			(0.840)			(0.701)			(0.729)			(0.753)
Sector*Post	−1.203^***			−0.352			0.0757			−0.789			−1.741^**
Sector*Post	(0.232)			(0.724)			(1.080)			(2.416)			(0.755)
Wage gap		2.719^***			3.186^**			−0.394^**			0.331^***			3.622^*
Wage gap		(0.586)			(1.333)			(0.166)			(0.0729)			(2.121)
Wage gap*Post		−0.128	−0.108		−0.0221	−0.319		−1.153	−1.251		−0.772^***	−0.751^***		−2.561	−2.706
Wage gap*Post		(0.350)	(0.351)		(0.632)	(0.605)		(0.781)	(0.845)		(0.215)	(0.227)		(1.971)	(1.767)
Individual Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
District controls	Yes	No	Yes	Yes	No	Yes	Yes	No	Yes	Yes	No	Yes	Yes	No	Yes
Constant	49.13^***	52.63^***	54.28^***	51.01^***	44.02^***	49.72^***	49.67^***	50.82^***	55.39^***	45.76^***	58.20^***	56.58^***	49.59^***	60.95^***	61.95^***
Constant	(0.405)	(1.042)	(0.719)	(1.140)	(1.119)	(0.962)	(1.238)	(1.865)	(3.434)	(1.790)	(3.034)	(3.125)	(2.056)	(2.447)	(2.440)
Observations	64,974	18,986	18,986	30,601	25,874	25,874	15,202	1,840	1,840	4,630	1,659	1,659	9,451	6,281	6,281
Number of districts	53	52	52	53	52	52	53	29	29	53	45	45	53	46	46
R-squared	0.082	0.089	0.113	0.093	0.048	0.106	0.052	0.015	0.048	0.387	0.015	0.076	0.152	0.023	0.057
F-statistic	117.91^***	58.48^***	42.99^***	23.84^***	11.8^***	12.92^***	8.71^***	5.89^***	3.26^**	149.10^***	37.35^***	27.10^***	130.04^***	24.97^***	23.40^***

Source: Data are from South African Labour Force Surveys (LFS) conducted by Statistics South Africa (15 waves September 2000 to September 2007).
Notes: The dependent variable is the usual number of hours worked per week as reported for full-time workers (those individuals who report working a minimum of 27 hours per week). Sample includes non self-employed workers aged between 15 and 65 years inclusive. The sample includes non-government employment only. In the first specification the sample includes the treatment and the control group only, whilst in the second specification, the sample is restricted to the sector of interest only. Robust standard errors clustered by district council are shown in parentheses.^***p < 0.01, ^** p < 0.05,^*p < 0.1. Individual controls include controls for race, years of schooling and gender. The wage gap measures the proportional increase in the real wages of workers in district council i at time t-1 necessary to meet the minimum wage at time t. The F-statistic refers to the test for the null hypothesis that the regression coefficients are equal to zero, which is rejected at the 1 percent level.

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