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Table 4 Employment effects of minimum wages on production workers in small firms by educational category

From: Do minimum wages affect employment? Evidence from the manufacturing sector in Indonesia

  Dependent variable: Log (Employment of production workers)
  Primary Jr. Sr. High High School Bachelor
Log (Min. Wage) −0.0855 −0.1957*** 0.0233 0.0891
  (0.0723) (0.0552) (0.2155) (0.1978)
Log (Firm Age) 0.0940*** 0.0691*** −0.2686*** −0.2768***
  (0.0272) (0.0202) (0.0688) (0.0779)
Foreign Share −0.0008 0.0002 0.0032* 0.0012
  (0.0010) (0.0006) (0.0017) (0.0015)
Export Share 0.0003 0.0007*** −0.0001 0.0009
  (0.0003) (0.0002) (0.0008) (0.0007)
Govt. Share 0.0006 0.0013*** 0.0001 −0.0004
  (0.0006) (0.0005) (0.0014) (0.0013)
Firm Fixed Effects Yes Yes Yes Yes
Year Effects Yes Yes Yes Yes
Number of Firms 16,360 19,036 3592 3087
Observations 35,634 40,865 5159 4502
R-squared 0.8622 0.8645 0.8953 0.9104
  1. Notes: The sample includes only small firms with non-zero production and non-production workers, small firms that continuously observed from year to year, and small firms observed more than once during the sample period. Small firms are firms which always have 150 or fewer workers. Data of workers’ educational composition are available in 1995, 1996, 1997, and 2006. Robust standard errors clustered by firm are reported in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1