Table 6 Variance decomposition: estimated firm effects and predicted wage from worker characteristics
From: The role of the firm in worker wage dispersion: an analysis of the Ghanaian manufacturing sector
Surge in inequality | Decline in inequality | |
|---|---|---|
1992 to <1998 | 1998 to 2003 | |
(1) | (2) | |
All firms | ||
Earnings dispersion: Var(lnw) | 1.460 | 1.318 |
Individual characteristics: Var(κ) | 0.235 | 0.331 |
Firm fixed effect: Var(δ) | 0.595 | 0.385 |
Cov(κ,δ) | 0.175 | 0.164 |
Sorting: worker–firm ρ δ | 0.745 | 0.495 |
Residuals: Var(u) | 0.498 | 0.385 |
Firms with private domestic ownership | ||
Earnings dispersion: Var(lnw) | 1.551 | 1.369 |
Individual characteristics: Var(κ) | 0.308 | 0.400 |
Firm fixed effect: Var(δ) | 0.387 | 0.232 |
Cov(κ,δ) | 0.124 | 0.081 |
Sorting: worker–firm ρ δ | 0.403 | 0.202 |
Residuals: Var(u) | 0.580 | 0.535 |
Firms with any foreign ownership | ||
Earnings dispersion: Var(lnw) | 0.803 | 0.825 |
Individual characteristics: Var(κ) | 0.139 | 0.214 |
Firm fixed effect: Var(δ) | 0.134 | 0.441 |
Cov(κ,δ) | 0.036 | −0.075 |
Sorting: worker–firm ρ δ | 0.259 | −0.350 |
Residuals: Var(u) | 0.808 | 1.413 |