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Table 7 Minimum wages and average wages of production workers

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

  Dependent variable: Log(Real average wage of production workers)
  All Firms All Firms Small Firms Small Firms Large Firms Large Firms
Log (Minimum Wage) 0.1060*** 0.1537*** 0.1317*** 0.1844*** 0.0607 0.0825*
  (0.0190) (0.0226) (0.0217) (0.0260) (0.0391) (0.0473)
Log (Firm Age)   0.1001***   0.0960***   0.1322***
   (0.0090)   (0.0104)   (0.0200)
Foreign Share   0.0008***   0.0013***   0.0002
   (0.0003)   (0.0004)   (0.0004)
Export Share   −0.0000   0.0000   0.0001
   (0.0001)   (0.0001)   (0.0001)
Govt. Share   0.0010***   0.0015***   0.0003
   (0.0002)   (0.0003)   (0.0004)
Firm Fixed Effects Yes Yes Yes Yes Yes Yes
Year Effects Yes Yes Yes Yes Yes Yes
Observations 233,442 159,959 170,667 115,569 62,775 44,390
Number of Firms 32,388 30,941 27,855 26,269 8585 8295
R-squared 0.6221 0.6558 0.6678 0.7044 0.5281 0.5926
  1. Notes: The sample includes only firms with non-zero production and non-production workers, firms that continuously observed from year to year, and firms observed more than once during the sample period. Small firms are firms which always have 150 or fewer workers; large firms are firms which always have more than 150 workers. The additional regressors have missing values in 2001, 2002, 2003, and 2005. Robust standard errors clustered by firm are reported in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1