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Table 3 Regression of wage inequality on the share of informal workers in model 1 and in model 2. System of equations with peso crisis defined as a dummy = 1 for 1994, 1995 and 1996

From: Wage inequality and informality: evidence from Mexico

  Model 1 Model 2
Informality 0.773 0.738
  (0.244) (0.263)
Share skill 2 0.985 −0.359
  (0.904) (0.362)
Share skill 3 1.878 0.458
  (0.621) (0.175)
Share skill 4 0.001 −0.003
  (0.013) (0.010)
Share age 2 −1.361 −0.631
  (0.909) (0.737)
Share age 3 −1.151 −0.619
  (0.508) (0.135)
Year −0.005 0.002
  (0.007) (0.012)
Constant 10.659 −4.617
  (12.778) (26.076)
  1. Standard errors in parenthesis. Sample of workers aged 25–60. Dependent variable: Gini (model 1); var log wages (model 2)