Table 3 Endogenous switching model: determinants of the choice of hiring channel and of the wage for workers hired through formal and informal hiring channels
Choice of informal hiring | Wage regression for workers hired through: | |||||
|---|---|---|---|---|---|---|
channel | social networks | formal channel | ||||
same family as firm’s head | 0.476 ∗∗∗ | (0.151) | -0.297 ∗∗ | (0.133) | -0.216 ∗ | (0.115) |
only same ethnicity as firm’s head | 0.081 | (0.154) | 0.025 | (0.089) | 0.178 | (0.113) |
job: manager | -0.458 | (0.287) | 0.629 ∗ | (0.335) | 0.486 ∗∗∗ | (0.107) |
skilled white collar | -0.336 ∗∗ | (0.145) | 0.436 ∗∗∗ | (0.138) | 0.197 ∗∗ | (0.101) |
unskilled | 0.252 ∗∗ | (0.112) | -0.434 ∗∗∗ | (0.075) | -0.192 ∗∗ | (0.087) |
education (years) | -0.030 ∗∗ | (0.012) | 0.040 ∗∗∗ | (0.010) | 0.057 ∗∗∗ | (0.009) |
previous experience (years) | -0.063 ∗∗∗ | (0.019) | 0.043 ∗∗∗ | (0.017) | 0.025 ∗ | (0.015) |
previous experience sq. (years) | 0.002 ∗∗∗ | (0.001) | -0.002 ∗∗ | (0.001) | -0.001 | (0.001) |
age over 40 at hiring | 0.304 ∗∗ | (0.141) | ||||
origin: Dakar | -0.054 | (0.265) | 0.134 | (0.217) | 0.040 | (0.259) |
other in Senegal | -0.215 | (0.266) | 0.100 | (0.074) | 0.044 | (0.257) |
married | 0.108 | (0.092) | 0.100 | (0.074) | 0.162 ∗∗∗ | (0.066) |
gender: male | -0.042 | (0.114) | -0.019 | (0.083) | 0.064 | (0.087) |
hours worked | 0.005 | (0.005) | 0.000 | (0.003) | 0.003 | (0.004) |
firm located in Dakar | -0.397 ∗ | (0.211) | 0.654 ∗∗∗ | (0.215) | 0.721 ∗∗∗ | (0.190) |
ln of n.employees | -0.110 ∗∗∗ | (0.039) | 0.132 ∗∗∗ | (0.032) | 0.058 ∗∗ | (0.029) |
owner and director | 0.110 | (0.110) | -0.126 ∗ | (0.073) | -0.052 | (0.073) |
TFP at hiring | 0.015 | (0.156) | 0.360 ∗∗∗ | (0.120) | 0.477 ∗∗∗ | (0.126) |
public firm | 0.051 | (0.253) | -0.037 | (0.230) | -0.010 | (0.131) |
intercept | 1.260 ∗∗∗ | (0.469) | 9.675 ∗∗∗ | (0.328) | 9.000 ∗∗∗ | (0.398) |
sector dummies | yes | yes | yes | |||
ρ N | -0.747 ∗∗∗ | (0.256) | ||||
ρ F | -0.142 | (0.270) | ||||
Log-likelihood | -1844.84 | |||||
Wald | 128.49 | |||||
N | 1139 | |||||