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Table 10 Decomposion of the formal-informal sector gap, matching approach

From: Is there an informal employment wage premium? Evidence from Tajikistan

Total gap

Δ F

Δ 0

Δ X

Δ M

Unexplained

Explained

perc F

perc I

-0.430

0.013

-0.319

-0.085

-0.038

-0.319

-0.110

28.5%

53.0%

     

(0.015)

   

Wage gap for different percentiles of the wage distribution

10th

20th

30th

40th

50th

60th

70th

80th

90th

On the support

-1.050

-1.088

-1.062

-0.944

-0.734

-0.660

-0.531

-0.490

-0.322

Out-of-support

-1.050

-0.998

-0.981

-0.875

-0.808

-0.726

-0.644

-0.688

-0.614

  1. Notes: The variables included in the specification are age, marital status, years of education, job tenure, private sector, rural settlement; perc F is the percentage of the formal sector individuals that are in the common support of the matching variables; perc I is the percentage of the informal sector individuals that are in the common support.