The sources of wage growth in a developing country

IZA Journal of Labor & Development

Table 3 Returns to sector tenure

Dependent variable	(1)	(2)	(3)	(4)
Log hourly wage	OLS	IV	OLS	IV
Employer tenure	0.010	0.038**	−0.007	0.006
	(0.011)	(0.015)	(0.033)	(0.046)
Employer tenure²			0.002	0.003
			(0.002)	(0.003)
Occupation tenure	−0.013	−0.015	0.027	0.164**
	(0.008)	(0.012)	(0.057)	(0.072)
Occupation tenure²			−0.007	−0.029**
			(0.010)	(0.012)
Occupation tenure³			0.000	0.001**
			(0.000)	(0.001)
Industry tenure	0.005	0.009	0.130**	0.108
	(0.010)	(0.014)	(0.062)	(0.081)
Industry tenure²			−0.016*	−0.013
			(0.009)	(0.011)
Industry tenure³			0.001	0.000
			(0.000)	(0.000)
Potential experience	0.014***	0.013***	0.020*	0.011
	(0.003)	(0.003)	(0.012)	(0.013)
Potential experience²			0.000	0.000
			(0.001)	(0.001)
Potential experience³			−0.000	−0.000*
			(0.000)	(0.000)
Sector tenure	0.007	0.006	−0.122**	−0.187**
	(0.008)	(0.013)	(0.061)	(0.077)
Sector tenure²			0.017*	0.027***
Sector tenure³			(0.009)	(0.010)
Sector tenure³			−0.001	−0.001**
			(0.000)	(0.000)
Employer tenure >1	−0.130***	−0.120**	−0.126*	−0.081
	(0.049)	(0.056)	(0.070)	(0.076)
Informal	−0.156***	−0.132***	−0.156***	−0.132***
	(0.039)	(0.039)	(0.038)	(0.038)
Married	0.171***	0.132***	0.135***	0.112**
	(0.047)	(0.047)	(0.050)	(0.049)
Education	0.101***	0.101***	−0.103***	−0.109***
	(0.009)	(0.009)	(0.032)	(0.032)
Education²			0.010***	0.010***
			(0.002)	(0.002)
Province unemployment	−0.016	−0.018	−0.020	−0.023
Rate	(0.017)	(0.017)	(0.017)	(0.017)
Observations	1616	1616	1616	1616
R-squared	0.306	0.298	0.331	0.320
Durbin-Wu-Hausman tests of endogeneity
Chi2		0.007		0.000
F		0.008		0.000

Notes: Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1. Occupation, industry, province, and year fixed effects are included. Cols. 3 and 4 include employer tenure squared, potential experience squared and cubed, sector tenure squared and cubed, and education squared