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Table 4 Regression of the share of informal workers on the peso crisis for model 1 and 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
= 1 if year ≥ 1994 and year ≤ 1996 0.031 0.047
  (0.004) (0.006)
Share skill 2 3.494 1.269
  (0.738) (0.239)
Share skill 3 1.975 0.465
  (0.249) (0.053)
Share skill 4 −0.044 −0.032
  (0.005) (0.003)
Share age 2 2.689 2.101
  (0.569) (0.366)
Share age 3 −0.322 0.012
  (0.308) (0.069)
Year −0.027 −0.045
  (0.004) (0.006)
Constant 52.913 93.235
  (8.347) (12.479)
Observations 16 16
  1. Standard errors in parenthesis. Sample of workers aged 25–60. Dependent variable: share of informal workers