The sources of wage growth in a developing country

Marinescu, Ioana; Triyana, Margaret

doi:10.1186/s40175-016-0047-9

IZA Journal of Labor & Development

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

Notes: Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1. Occupation, industry, province, and year fixed effects are included

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