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Table 8 Returns by sector using alternative definitions of informality

From: The sources of wage growth in a developing country

  (1) (2) (3) (4) (5) (6) (7) (8)
Dependent variable Informal: self-employed and salaried informal in same category Informal: not using information on medical benefits Informal: all self-employed and small firms Informal: based on medical benefits only
Log hourly wage OLS IV OLS IV OLS IV OLS IV
Employer tenure 0.007 0.033** 0.017 0.031* 0.007 0.021 0.007 −0.004
  (0.011) (0.016) (0.013) (0.018) (0.011) (0.015) (0.013) (0.016)
Occupation tenure −0.018** −0.014 −0.014 −0.004 −0.010 −0.006 −0.017* −0.011
  (0.008) (0.012) (0.008) (0.013) (0.008) (0.012) (0.010) (0.014)
Industry tenure 0.008 0.009 0.016 0.012 0.002 0.001 0.001 0.027
  (0.011) (0.015) (0.010) (0.015) (0.010) (0.014) (0.014) (0.019)
Potential experience 0.015*** 0.014*** 0.013*** 0.012*** 0.013*** 0 .013*** 0.004 0.001
  (0.003) (0.003) (0.003) (0.003) (0.003) (0.003) (0.004) (0.004)
Sector tenure 0.020* 0.021 −0.007 −0.001 0.018* 0.034** 0.034*** 0.027*
  (0.011) (0.015) (0.013) (0.019) (0.010) (0.015) (0.012) (0.015)
Informal × tenure −0.033*** −0.047*** −0.000 −0.008 −0.026** −0.036** −0.040*** −0.041**
  (0.012) (0.015) (0.012) (0.016) (0.011) (0.015) (0.014) (0.018)
Informal −0.030 0.040 −0.116* −0.075 −0.080 −0.029 −0.063 −0.042
  (0.060) (0.065) (0.062) (0.069) (0.058) (0.061) (0.081) (0.082)
Employer tenure >1 −0.128** −0.114** −0.134*** −0.114** −0.102** −0.099* −0.156** −0.087
  (0.050) (0.057) (0.050) (0.057) (0.049) (0.056) (0.072) (0.078)
Married 0.157*** 0.120** 0.164*** 0.135*** 0.175*** 0.139*** 0.275*** 0.241***
  (0.048) (0.049) (0.047) (0.047) (0.047) (0.047) (0.061) (0.061)
Education 0.106*** .105*** 0.096*** 0.096*** 0.098*** 0.097*** 0.108*** 0.107***
  (0.009) (0.009) (0.008) (0.008) (0.008) (0.008) (0.012) (0.012)
Province unemployment −0.011 −0.013 −0.005 −0.007 −0.011 −0.015 0.002 −0.002
Rate (0.017) (0.017) (0.017) (0.017) (0.017) (0.017) (0.021) (0.021)
Observations 1513 1513 1575 1575 1615 1615 945 945
R-squared 0.327 0.319 0.292 0.287 0.303 0.296 0.337 0.333
Durbin-Wu-Hausman tests of endogeneity       
Ch i 2   0.0013   0.0893   0.0359   0.1921
F   0.0016   0.1003   0.0409   0.2142
  1. Notes: Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1. Occupation, industry, province, and year fixed effects are included