Formal sector subcontracting and informal sector employment in Indian manufacturing

IZA Journal of Labor & Development

Table 7 Estimation results

	Employment	Hired workers	Wage bill	Employment	Hired workers	Wage bill
ln(FS)	0.138*	0.234***	0.177**
	(0.0710)	(0.0789)	(0.0819)
ln(FS)*M	0.112*	0.119*	0.124*
	(0.0638)	(0.0649)	(0.0635)
ln(FS)*Q1				0.0175	0.119	0.0354
				(0.0763)	(0.114)	(0.118)
ln(FS)*Q2				−0.0386	0.0311	−0.0149
				(0.0982)	(0.0952)	(0.101)
ln(FS)*Q3				0.0963	0.305*	0.394**
				(0.150)	(0.159)	(0.196)
ln(FS)*Q4				0.361***	0.402***	0.277**
				(0.139)	(0.135)	(0.133)
ln(formal emp.)	−0.00768	−0.139	−0.104	0.0293	0.0293	−0.111
	(0.0878)	(0.111)	(0.108)	(0.0916)	(0.0916)	(0.114)
Constant	8.057***	5.952***	16.37***	8.268***	6.062***	16.16***
	(1.323)	(1.329)	(1.301)	(1.292)	(1.320)	(1.438)
Observations	774	774	774	774	774	774
R-squared	0.479	0.421	0.491	0.492	0.421	0.488

Note: All dependent variables are in logs. All estimations include state-year and industry-year effects and an interaction of the modernity index (or quartile) with year dummies. Standard errors clustered at state-industry level are reported in parentheses below the point estimates; *significant at the .10 level; **at the .05 level; ***at the .01 level.