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Table 5 Employment effects of minimum wages on non-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 non-production workers)
  Primary Jr. Sr. High High School Bachelor
Log (Min. Wage) −0.2915* −0.1553*** −0.0751 −0.0490
  (0.1660) (0.0497) (0.1114) (0.1026)
Log (Firm Age) 0.0483 0.1104*** −0.1204*** −0.1803***
  (0.0531) (0.0191) (0.0400) (0.0349)
Foreign Share −0.0027* 0.0021*** 0.0008 −0.0006
  (0.0016) (0.0006) (0.0011) (0.0009)
Export Share −0.0008 0.0001 0.0006 0.00003
  (0.0005) (0.0003) (0.0005) (0.0004)
Govt. Share 0.0010 0.00004 −0.0016 −0.0017*
  (0.0011) (0.0005) (0.0010) (0.0009)
Firm Fixed Effects Yes Yes Yes Yes
Year Effects Yes Yes Yes Yes
Number of Firms 7707 19,126 7234 7208
Observations 13,571 41,823 11,982 12,523
R-squared 0.8888 0.8596 0.8431 0.8239
  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