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Table 8 Raw and regression-adjusted formal-informal sector earnings gap (Informal Sector Penalty) using three alternative informality measures: October 2008 and October 2009 (in logs and de-logged)

From: Bound to lose, bound to win? The financial crisis and the informal-formal sector earnings gap in Serbia

  October 2008 October 2009
  (1) Not formally registered (2) No labor contract (3) No pension benefits (1) Not formally registered (2) No labor contract (3) No pension benefits
(i) Raw Earnings Gaps:
 Formal sector 10.067*** 10.102*** 10.108*** 10.079*** 10.096*** 10.093***
  [0.001] [0.001] [0.001] [0.001] [0.001] [0.001]
 Informal sector 9.152*** 9.437*** 9.465*** 9.437*** 9.572*** 9.637***
  [0.005] [0.003] [0.002] [0.005] [0.003] [0.002]
 IS penalty (Logs) −0.914*** −0.665*** −0.643*** −0.642*** −0.524*** −0.456***
  [0.005] [0.003] [0.002] [0.005] [0.003] [0.002]
 IS penalty (De-logged) −0.599 −0.486 −0.474 −0.269 −0.195 −0.211
(ii) Regression-adjusted Earnings Gaps:
 IS penalty (Logs) −0.314*** −0.217*** −0.237*** −0.307*** −0.187*** −0.140***
  [0.004] [0.002] [0.002] [0.004] [0.002] [0.002]
 IS penalty (De-logged) −0.474 −0.408 −0.366 −0.264 −0.171 −0.131
 N 2,783 2,783 2,783 2,577 2,577 2,577
  1. Values in brackets are robust Huber-White (Huber 1967; White 1980) standard errors
  2. ***: statistically significant at 1%. Source: Serbia Labor Force Survey (October 2008 and October 2009)