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Table 6 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 and 1995

From: Wage inequality and informality: evidence from Mexico

 

Model 1

Model 2

= 1 if year ≥ 1994 and year ≤ 1995

0.019

0.030

 

(0.006)

(0.009)

Share skill 2

1.752

0.764

 

(1.078)

(0.361)

Share skill 3

2.287

0.574

 

(0.433)

(0.087)

Share skill 4

−0.052

−0.038

 

(0.009)

(0.005)

Share age 2

1.676

1.625

 

(0.873)

(0.582)

Share age 3

0.552

0.195

 

(0.435)

(0.101)

Year

−0.020

−0.038

 

(0.007)

(0.009)

Constant

39.788

79.299

 

(13.156)

(20.195)

Observations

16

16

  1. Standard errors in parenthesis. Sample of workers aged 25–60. Dependent variable: share of informal workers