Formal sector subcontracting and informal sector employment in Indian manufacturing

IZA Journal of Labor & Development

Table 8 Estimation results, modernity index without owner qualification

	Employment	Hired workers	Wage bill	Employment	Hired workers	Wage bill
ln(FS)	0.141*	0.238***	0.183**
	0.0726	0.0800	0.0827
ln(FS)*M	0.0859	0.0696	0.0778
	0.0547	0.0574	0.0561
ln(FS)*Q1				0.0226	0.0921	−0.0104
				0.0786	0.112	0.116
ln(FS)*Q2				0.0804	0.214*	0.211*
				0.0984	0.114	0.113
ln(FS)*Q3				−0.0305	0.118	0.167
				0.114	0.135	0.168
ln(FS)*Q4				0.334**	0.377***	0.259*
				0.139	0.139	0.139
ln(formal emp.)	−0.00829	−0.137	−0.100	0.0339	−0.124	−0.109
	0.0873	0.108	0.105	0.0944	0.116	0.114
Constant	7.969***	5.837***	16.20***	8.265***	6.379***	16.72***
	1.361	1.370	1.341	1.186	1.279	1.335
Observations	775	775	775	775	775	775
R-squared	0.48	0.43	0.50	0.49	0.42	0.49

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.