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Table 12 First-stage regressions: returns to employer, occupation, industry, and sector tenure

From: The sources of wage growth in a developing country

Panel A. Linear model
Endogenous variable (1) (2) (3) (4) (5)        
Employer Occupation Industry Sector Employer tenure >1        
Employer tenure 1.005*** 0.095 −0.050 −0.208*** 0.034***        
  (0.055) (0.062) (0.061) (0.062) (0.008)        
Occupation tenure 0.142*** 0.928*** 0.054 0.084** 0.012**        
  (0.037) (0.038) (0.039) (0.039) (0.005)        
Industry tenure −0.072* −0.008 0.953*** 0.031 −0.011        
  (0.044) (0.048) (0.055) (0.051) (0.008)        
Potential experience 0.024*** 0.008 0.028*** 0.021*** 0.002*        
  (0.008) (0.006) (0.008) (0.008) (0.001)        
Sector tenure −0.153*** −0.076* −0.074* 0.929*** −0.016**        
  (0.042) (0.045) (0.044) (0.049) (0.006)        
Employer tenure >1 0.363** 0.320** 0.262* 0.704*** 1.002***        
  (0.141) (0.142) (0.149) (0.150) (0.015)        
Informal −0.947*** −0.441*** −0.999*** −0.460*** −0.098***        
  (0.110) (0.106) (0.117) (0.113) (0.016)        
Married 0.915*** 0.711*** 1.102*** 1.044*** 0.102***        
  (0.129) (0.127) (0.138) (0.134) (0.018)        
Education 0.020 −0.014 0.025 −0.005 0.002        
  (0.022) (0.021) (0.023) (0.022) (0.003)        
Province unemployment −0.012 0.052 0.013 0.057 −0.006        
Rate (0.046) (0.046) (0.049) (0.049) (0.007)        
R-squared 0.57 0.57 0.65 0.57 0.64        
F-statistic 30.57 24.15 50.95 30.42 124.00        
Panel B. Non-linear model
Endogenous variable (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Employer Employer tenure2 Occupation tenure Occupation tenure2 Occupation tenure3 Industry tenure Industry tenure2 Industry tenure3 Sector tenure Sector tenure2 Sector tenure3 Employer tenure >1
Employer tenure 0.779*** −2.461 0.163 2.542 36.362* 0.325** 5.038** 75.129* 0.330** 5.464** 86.490** 0.031
  (0.150) (1.962) (0.146) (1.698) (21.452) (0.161) (2.530) (39.717) (0.164) (2.526) (39.355) (0.021)
Employer tenure2 0.017 1.124*** −0.003 −0.085 −1.458 −0.026** −0.402** 5.994** −0.034*** −0.498** −7.243** 0.000
  (0.011) (0.155) (0.010) (0.128) (1.701) (0.011) (0.189) (3.010) (0.012) (0.196) (3.097) (0.001)
Occupation tenure 0.049 −1.508 0.870*** 2.308 70.284** 0.091 0.408 5.892 0.073 −0.841 −24.604 0.074***
  (0.234) (3.391) (0.202) (2.430) (30.854) (0.227) (3.384) (50.875) (0.245) (3.607) (53.279) (0.026)
Occupation tenure2 0.006 0.359 −0.014 0.103 −17.233*** −0.013 −0.135 −2.690 −0.002 0.218 4.747 −0.009**
  (0.040) (0.598) (0.034) (0.428) (5.629) (0.038) (0.595) (9.158) (0.042) (0.638) (9.583) (0.004)
Occupation tenure3 0.000 −0.008 0.002 0.048** 1.803*** 0.001 0.013 0.247 0.000 −0.005 −0.122 0.000**
  (0.002) (0.028) (0.002) (0.020) (0.280) (0.002) (0.028) (0.436) (0.002) (0.030) (0.460) (0.000)
Industry tenure 0.093 4.078 0.041 0.951 16.320 0.187 −4.832 −5.883 0.723*** 10.064** 134.044** −0.105***
  (0.228) (3.323) (0.185) (1.922) (22.267) (0.238) (3.580) (54.697) (0.277) (4.119) (62.132) (0.032)
Industry tenure2 −0.016 −0.562 −0.023 −0.339 −4.976 0.071* 1.190** −3.408 −0.114*** −1.570** −20.905** 0.014***
  (0.034) (0.516) (0.026) (0.278) (3.364) (0.037) (0.598) (9.539) (0.042) (0.663) (10.277) (0.004)
Industry tenure3 0.000 0.017 0.001 0.021* 0.297* −0.001 0.008 1.265*** 0.005** 0.066** 0.889* −0.001***
  (0.001) (0.022) (0.001) (0.012) (0.157) (0.002) (0.028) (0.451) (0.002) (0.030) (0.481) (0.000)
Potential experience 0.184*** 1.918*** 0.095*** 0.881*** 8.015*** 0.250*** 2.838*** 32.187*** 0.206*** 2.127*** 21.902*** 0.021***
  (0.027) (0.310) (0.027) (0.276) (3.022) (0.029) (0.355) (4.484) (0.028) (0.347) (4.517) (0.004)
Potential experience2 −0.006*** −0.062*** −0.003*** −0.028** −0.260** −0.008*** −0.093*** −1.055*** −0.007*** −0.065*** −0.588** −0.001***
  (0.001) (0.014) (0.001) (0.012) (0.131) (0.001) (0.016) (0.203) (0.001) (0.017) (0.229) (0.000)
Potential experience3 0.000*** 0.001*** 0.000** 0.000* 0.002 0.000*** 0.001*** 0.010*** 0.000*** 0.001*** 0.005* 0.000***
  (0.000) (0.000) (0.000) (0.000) (0.001) (0.000) (0.000) (0.002) (0.000) (0.000) (0.003) (0.000)
Sector tenure 0.469** 5.947** 0.263 2.191 17.103 0.403** 4.819* 59.537 0.081 −7.253** −45.638 0.066**
  (0.192) (2.441) (0.176) (1.799) (20.696) (0.202) (2.782) (41.180) (0.241) (3.543) (52.817) (0.034)
Sector tenure2 −0.077*** −0.876** −0.035 −0.228 −1.018 −0.061** −0.723* −9.301 0.099** 1.635*** 2.318 −0.013***
  (0.027) (0.371) (0.025) (0.270) (3.346) (0.028) (0.419) (6.432) (0.039) (0.614) (9.523) (0.004)
Sector tenure3 0.002** 0.025 0.001 0.001 −0.050 0.002 0.021 0.287 −0.003* −0.021 0.899* 0.001***
  (0.001) (0.016) (0.001) (0.012) (0.153) (0.001) (0.018) (0.288) (0.002) (0.030) (0.482) (0.000)
Employer tenure >1 −0.116 −1.911 0.006 −2.425 −52.885** 0.083 −2.031 −68.234 0.212 −0.444 −46.268 0.983***
  (0.211) (2.542) (0.208) (2.203) (24.931) (0.220) (2.969) (42.231) (0.231) (3.084) (43.360) (0.026)
Informal −0.847*** −9.740*** −0.366*** −4.022*** −45.119*** −0.860*** 10.602*** 24.954*** −0.342*** −4.870*** 61.468*** −0.089***
  (0.109) (1.291) (0.106) (1.104) (12.213) (0.112) (1.364) (17.491) (0.112) (1.352) (17.286) (0.016)
Married 0.595*** 7.235*** 0.516*** 5.824*** 66.082*** 0.611*** 7.688*** 98.061*** 0.643*** 8.460***1 10.001*** 0.062***
  (0.130) (1.552) (0.140) (1.526) (17.754) (0.138) (1.716) (22.758) (0.136) (1.649) (21.135) (0.020)
Education 0.235*** 4.179*** 0.116 1.210 9.337 0.203** 3.683*** 52.923*** 0.263*** 4.385*** 60.189*** −0.022
  (0.090) (1.073) (0.089) (0.945) (10.543) (0.092) (1.119) (14.314) (0.088) (1.094) (14.256) (0.013)
Education2 −0.010** −0.192*** −0.006 −0.072 −0.647 −0.008* −0.165*** −2.441*** −0.013*** −0.216*** −2.967*** 0.001*
  (0.004) (0.049) (0.004) (0.045) (0.495) (0.004) (0.052) (0.655) (0.004) (0.050) (0.642) (0.001)
Province unemployment −0.016 −0.089 0.031 0.299 3.228 −0.006 0.043 0.940 0.070 0.823 10.333 −0.007
Rate (0.045) (0.549) (0.044) (0.481) (5.510) (0.047) (0.593) (7.877) (0.048) (0.592) (7.823) (0.007)
R-squared 0.58 0.62 0.58 0.66 0.73 0.67 0.72 0.75 0.60 0.63 0.67 0.65
F-statistic 32.89 25.47 29.97 28.64 25.30 66.91 59.82 50.68 41.25 29.75 21.46 103.22
  1. Notes: Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1. Second-stage results in Table 3. Panel B includes employer tenure squared, potential experience squared and cubed, sector tenure squared and cubed, and education squared