Earned income tax credits, unemployment benefits and wages: empirical evidence from Sweden

Table 5 Estimated wage equations at the percentile income group level

	(1)	(2)	(3)	(4)	(5)	(6)
Change in mean replacement rate	.200***	.200***	.199***	.199***	-.086	-.078
	(.046)	(.046)	(.046)	(.046)	(.182)	(.182)
Change in mean of progressivity variable		.001		.000		.019
		(.017)		(.017)		(.016)
Group fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Weights			Yes	Yes	Yes	Yes
Year dummies					Yes	Yes
N	400	400	400	400	400	400
R2	.060	.060	.060	.060	.255	.258

Note: Dependent variable: first difference of log nominal wage. Sample period: 2006-2009. Mean wages and reform variables are computed over percentile income intervals based on the 2006 income distribution implied by predicted Mincer wages. The constant is not reported. Robust standard errors are reported within parenthesis. ***: significant at the 1 per cent level; **: significant at the 5 per cent level; *: significant at the 10 per cent level. Weights indicate average group size.