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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