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Table 5 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 and 1995

From: Wage inequality and informality: evidence from Mexico

  Model 1 Model 2
Informality 1.266 0.853
  (0.348) (0.367)
Share skill 2 1.199 −0.376
  (0.917) (0.360)
Share skill 3 0.993 0.395
  (0.766) (0.222)
Share skill 4 0.020 0.001
  (0.016) (0.013)
Share age 2 −1.720 −0.767
  (0.933) (0.791)
Share age 3 −1.613 −0.649
  (0.562) (0.150)
Year −0.001 0.005
  (0.007) (0.014)
Constant 2.081 −10.837
  (13.565) (29.318)
Observations 16 16
  1. Standard errors in parenthesis. Sample of workers aged 25–60. Dependent variable: Gini (model 1); var log wages (model 2)