Informality and exclusion: evidence from matched employer-employee data for Lebanon and Syria

Table 4 Regressions for estimating the formality premium

	Lebanon		Syria
Dependent variable: log hourly wage	(1)	(2)	(3)	(4)
Formal	0.2340***	0.2159***	0.123***	0.119***
	(0.0492)	(0.0523)	(0.0443)	(0.0448)
Female	-0.0966**	-0.0872**	-0.137***	-0.122***
	(0.0442)	(0.0440)	(0.0453)	(0.0442)
Years of education	0.0203***	0.0169***	0.0418***	0.0334***
	(0.0045)	(0.0048)	(0.00429)	(0.00424)
Age	0.0135	0.0121	0.0460***	0.0465***
	(0.0136)	(0.0137)	(0.0126)	(0.0121)
Age²	-0.0001	-0.0001	-0.000468***	-0.000470***
	(0.0002)	(0.0002)	(0.000168)	(0.000159)
Firm size <5 (base 10–49)	-0.1615**	-0.1591**	0.0489	0.000480
	(0.0657)	(0.0671)	(0.0865)	(0.0864)
Firm size 5-9	-0.0123	-0.0398	-0.0747	-0.0460
	(0.0617)	(0.0670)	(0.0840)	(0.0843)
Firm size >50	0.0092	-0.0201	-0.0740	-0.0683
	(0.0534)	(0.0530)	(0.0688)	(0.0667)
Cognitive score quintile 2		0.0409		-0.00731
		(0.0605)		(0.0520)
Cognitive score quintile 3		0.1341**		0.0397
		(0.0666)		(0.0553)
Cognitive score quintile 4		0.1897***		0.0903
		(0.0675)		(0.0651)
Cognitive score quintile 5		0.1424**		0.229***
		(0.0713)		(0.0760)
Open to experience		0.0185		0.0882***
		(0.0430)		(0.0311)
Conscientious		0.0073		-0.00841
		(0.0431)		(0.0446)
Extrovert		0.0732*		-0.0324
		(0.0433)		(0.0383)
Agreeable		-0.1089***		-0.168***
		(0.0415)		(0.0382)
Emotionally stable		0.0725*		-0.0361
		(0.0418)		(0.0390)
Constant	1.3230***	1.2106***		3.082***
	(0.2542)	(0.2642)		(0.243)
Observations	503	491		928
R-squared	0.3817	0.4351		0.300

Note: Robust standard errors in parentheses. *** p < 0.01, ** p < 0.05, * p < 0.1. Regression (2) for Lebanon and (4) for Syria control for industry and region dummies.