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

IZA Journal of Labor & Development

Table 8 Minimum wages and average wages of non-production workers

	Dependent variable: Log(Real average wage of non-production workers)
	All Firms	All Firms	Small Firms	Small Firms	Large Firms	Large Firms
Log (Minimum Wage)	0.0600**	0.1654***	0.0493*	0.1659***	0.0708	0.1186*
	(0.0254)	(0.0306)	(0.0293)	(0.0355)	(0.0532)	(0.0642)
Log (Firm Age)		0.1015***		0.0900***		0.1183***
		(0.0120)		(0.0137)		(0.0283)
Foreign Share		0.0023***		0.0023***		0.0020***
		(0.0004)		(0.0006)		(0.0005)
Export Share		0.0004***		0.0003		0.0006***
		(0.0001)		(0.0002)		(0.0002)
Govt. Share		0.0009***		0.0012***		0.0005
		(0.0003)		(0.0004)		(0.0005)
Firm Fixed Effects	Yes	Yes	Yes	Yes	Yes	Yes
Year Effects	Yes	Yes	Yes	Yes	Yes	Yes
Observations	226,507	158,153	163,898	113,839	62,609	44,314
Number of Firms	31,798	30,112	27,253	25,434	8573	8286
R-squared	0.6053	0.6405	0.6281	0.6767	0.5154	0.5571

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