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Table 9 Employment effects of minimum wages on production workers –restricted sample

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

Dependent variable: Log (Number of paid production workers)

 

All firms

Small firms

Large firms

VARIABLES

(1)

(2)

(3)

(4)

(5)

(6)

Log (Min. Wage)

−0.0436***

−0.0402**

−0.0223*

−0.0315**

−0.0209

0.0125

 

(0.014)

(0.017)

(0.012)

(0.015)

(0.026)

(0.032)

Log (Firm Age)

 

0.195***

 

0.0997***

 

0.237***

  

(0.007)

 

(0.006)

 

(0.015)

Foreign Share

 

0.00175***

 

0.000582**

 

0.00133***

  

(0.000)

 

(0.000)

 

(0.000)

Export Share

 

0.00115***

 

0.000894***

 

0.000469***

  

(0.000)

 

(0.000)

 

(0.000)

Govt. Share

 

0.000155

 

5.42E-05

 

−2.49E-05

  

(0.000)

 

(0.000)

 

(0.000)

Observations

246,539

163,065

187,686

124,383

57,133

37,602

Number of Firms

39,734

38,242

34,610

33,040

9119

8728

Fixed Effects

YES

YES

YES

YES

YES

YES

Year Effects

YES

YES

YES

YES

YES

YES

  1. Notes: This sample excludes observations for the years of the Asian financial crisis (1997 and 1998). Robust standard errors clustered by firm are reported in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1