# Table 2 Estimated wage equations when the replacement rate and progressivity variable are based on lagged wages

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Inflation     .766*** .725*** .724*** .726*** .740*** .647***    .514***
(.014) (.018) (.018) (.018) (.018) (.020)    (.021)
Change in replacement rate .343***   .332*** .367*** .369*** .368*** .369*** .365*** .490*** .395*** .395*** .547***
(.006)   (.006) (.006) (.006) (.006) (.006) (.006) (.008) (.007) (.007) (.004)
Change in progressivity variable   .111*** .028*** .040*** .040*** .040*** .040*** .040*** .039*** .034*** .034*** .040***
(.003) (.003) (.003) (.003) (.003) (.003) (.003) (.003) (.003) (.003) (.003)
Change in unemployment rate      -.057*** -.058*** -.054*** -.036** -.319*** -.121*** -.121*** -.007
(.017) (.017) (.017) (.017) (.019) (.033) (.033) (.000)
Dummy for earlier unemployment      -.001*** -.001 -.001 -.001 .006*** -.001 -.001 .001
(.001) (.001) (.001) (.001) (.001) (.001) (.000) (.001)
Male     -.018 -.020 -.027 -.027 .009 -.498*** -.019 -.019
(.045) (.045) (.045) (.045) (.045) (.049) (.045) (.045)
Age     -.089*** -.089*** -.226*** -.217*** -.231*** -.363*** -.224*** -.236*** -.005***
(.002) (.002) (.015) (.016) (.015) (.017) (.015) (.016) (.001)
Age squared       .157*** .148*** .163*** .282*** .153*** .165*** .000***
(.017) (.018) (.016) (.018) (.017) (.018) (.000)
Payroll dummy 2007        .004     -.002
(.003)     (.002)
Payroll dummy 2009        .000     -.003
(.002)     (.002)
Controls     Yes Yes Yes Yes Yes Yes Yes Yes Yes
Entrepreneurs excluded         Yes
Full-time employed          Yes
Year dummies           Yes Yes
Individual fixed effects             Yes
N 382 548 382 548 382 548 382545 382 545 382 545 382 545 374 786 291 656 382 545 382 545 382 545
R2 .031 .005 .031 .048 .048 .049 .049 .049 .078 .050 .050 .084
1. Dependent variable: first difference of log nominal wage. Sample period: 2006-2009. Where indicated, the controls comprise educational level and type, region of birth and civil status. 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. The coefficients and standard errors for Male and Age have been multiplied by 100, and the coefficient and standard errors for Age squared by 1002.