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Table 7 The determinants of the relative minimum wages, OLS

From: Regional variation of the minimum wages in China

 

Dependent variable =

Log(highest minimum wage within a city/average wage)

Log(highest minimum wage within a city/average wage)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Ln(GDP per capita)

−0.00458c

−0.00126

−0.00324c

−0.000811

−0.00447c

−0.00168a

−0.00336c

−0.00111

(0.000465)

(0.000787)

(0.000687)

(0.000875)

(0.000421)

(0.000944)

(0.000606)

(0.000941)

Employment rate

0.00127

0.0118

−0.00278

0.00690

0.00106

0.0143a

−0.00144

0.00712

(0.00485)

(0.00890)

(0.00605)

(0.0115)

(0.00396)

(0.00805)

(0.00523)

(0.0109)

GDP growth rate

−0.00330

−0.00552

−0.00269

−0.00405

−0.00269

−0.00489

−0.00189

−0.00362

(0.00449)

(0.00359)

(0.00446)

(0.00378)

(0.00414)

(0.00329)

(0.00405)

(0.00342)

Tertiary sector share

−0.00146

−0.00446

−0.00133

−0.00368

−0.00274

−0.00268

−0.00268

−0.00202

(0.00193)

(0.00322)

(0.00196)

(0.00342)

(0.00195)

(0.00350)

(0.00194)

(0.00356)

Private employment share

−0.00199

−0.00185

−0.000602

−0.00271

−0.00303a

−0.00114

−0.00124

−0.00163

(0.00178)

(0.00280)

(0.00187)

(0.00362)

(0.00169)

(0.00240)

(0.00195)

(0.00298)

FDI share in GDP

0.00755

0.00387

0.00944a

−0.000662

0.00763

0.00721

0.00874

0.00220

(0.00470)

(0.00523)

(0.00513)

(0.00547)

(0.00516)

(0.00553)

(0.00567)

(0.00585)

Fiscal expenditure/GDP

−0.0124c

−0.0113c

−0.0123c

−0.00783b

−0.00697a

−0.00885c

−0.00652a

−0.00629a

(0.00377)

(0.00326)

(0.00338)

(0.00357)

(0.00379)

(0.00310)

(0.00325)

(0.00338)

Service sector/GDP

0.0181

0.00900

0.0442

0.0190

0.0124

0.0000916

0.0342

0.0197

(0.0308)

(0.0508)

(0.0358)

(0.0556)

(0.0228)

(0.0459)

(0.0279)

(0.0501)

Per capita number of enterprises

0.000289c

0.000206

0.000334c

0.000194

0.000303c

0.000162

0.000325c

0.000142

(0.0000956)

(0.000146)

(0.000105)

(0.000177)

(0.0000655)

(0.000134)

(0.0000677)

(0.000170)

Ln(consumption per capita)_rural

  

−0.000166

−0.000602

  

0.00122

0.000700

  

(0.000949)

(0.00203)

  

(0.00101)

(0.00215)

Ln(consumption per capita)_urban

  

−0.00456b

−0.00631b

  

−0.00531c

−0.00552a

  

(0.00206)

(0.00305)

  

(0.00159)

(0.00297)

Province dummies

No

Yes

No

Yes

No

Yes

No

Yes

N

2033

2033

1862

1862

2033

2033

1862

1862

Adj. R 2

0.260

0.432

0.263

0.390

0.273

0.459

0.247

0.396

  1. Standard errors in parentheses; a, b, and c represent significance levels of 10, 5, and 1 %, respectively