IZA Journal of Labor & Development

Table 11 First-stage regressions: returns to employer tenure

From: The sources of wage growth in a developing country

Panel A. Linear model
Endogenous variable	(1)	(2)
Endogenous variable	Employer tenure	Employer tenure >
Employer tenure	0.690***	−0.012***
	(0.027)	(0.003)
Potential experience	0.034***	0.003***
	(0.004)	(0.001)
Employer tenure >1	0.437***	0.988***
	(0.091)	(0.009)
Married	0.835***	0.101***
	(0.075)	(0.012)
Education	0.033***	0.003**
	(0.011)	(0.002)
Province unemployment	0.010	−0.005
Rate	(0.027)	(0.004)
R-squared	0.541	0.62
F-statistic	29.91	131.88
Panel B. Non-linear model
Endogenous variable	(1)	(2)	(3)
Endogenous variable	Employer tenure	Employer tenure²	Employer tenure >1
Employer tenure	0.678***	−2.546*	−0.024***
	(0.090)	(1.385)	(0.006)
Employer tenure²	0.001	0.895***	0.001**
	(0.007)	(0.115)	(0.000)
Potential experience	0.140***	1.378***	0.020***
	(0.015)	(0.179)	(0.003)
Potential experience²	−0.003***	−0.027***	−0.001***
	(0.001)	(0.007)	(0.000)
Potential experience³	0.000***	0.000*	0.000***
	(0.000)	(0.000)	(0.000)
Employer tenure >1	0.425***	5.508***	1.003***
	(0.137)	(1.987)	(0.012)
Married	0.523***	5.869***	0.060***
	(0.082)	(0.968)	(0.014)
Education	0.164***	2.236***	0.012*
	(0.038)	(0.454)	(0.006)
Education²	−0.007***	−0.097***	−0.000
	(0.002)	(0.023)	(0.000)
Province unemployment	0.014	0.319	−0.004
Rate	(0.027)	(0.320)	(0.004)
R-squared	0.56	0.59	0.63
F-statistic	35.63	34.29	121.37

Notes: Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1. Second-stage results in Table 2. Panel B includes employer tenure squared, potential experience squared and cubed, and education squared

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