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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)  
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)
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
  1. 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