Table 11 Variables definition and sources of data

Social security regulations

Indicator variable for whether the worker receives contributions to the pension system and the health insurance system. Source: Encuesta Permanente de Hogares.

Employment regulations

Indicator variable for whether the worker receives paid vacations, annual extra monthly wage, paid sick days, earns the minimum wage or more, and works no more than the legislated maximum of weekly hours. Source: Encuesta Permanente de Hogares.

Non-mandated benefits

Set of three indicator variables for whether the worker receives meals at work, receives housing, or receives free products. Source: Encuesta Permanente de Hogares.

Hourly wage and monthly labor income

Hourly wage and monthly labor income in main occupation in local currency at 2005 prices. Source: Encuesta Permanente de Hogares.

Percentiles of the wage distribution

10th, 50th and 90th percentiles of the distribution of the logarithm of hourly wages calculated at the province, sector, and year level. Source: Encuesta Permanente de Hogares.

Employment categories

Set of two indicator variables for whether the worker is a salaried employee or is selfemployed. Source: Encuesta Permanente de Hogares.

Enforcement measure

Logarithm of the ratio between the number of inspected firms and the total number of formal firms in each province, sector and year. Source: MTEySS.

Arrival cost of labor inspectors

Logarithm of extension of the road network in each province and year multiplied by the number of crossing vehicles in each province and year. The road network is normalized by the territory of each province and the number of crossing vehicles is expressed in a per capita basis. The logarithm is multiplied by the share of each sector in the total gross production value in 2004. Sources: INDEC, Consejo Vial Federal, and Asociación Argentina de Carreteras.

Educational levels

Skilled workers: complete college education; Semi-skilled: complete secondary education or incomplete college education; Unskilled: incomplete secondary education or lower.

Firm size

Small size: 5 employees or less; Medium size: 6 to 40 employees; Large size: 41 employees or more.

Economic sectors

1 = Agriculture, animal production, hunting, forestry, and fishing; 2 = Mining and quarrying; 3 = Manufacturing; 4 = Electricity, gas and water supply; 5 = Construction; 6 = Wholesale and retail trade, and real estate activities; 7 = Accommodation and food service activities; 8 = Transportation and storage, communication, and financial intermediation; 9 = Education; 10 = Human health and social work activities, and personal services.

Social expenditure

Logarithm of social expenditure expressed in a per capita basis at 2005 prices for each province and year. Source: Dirección Nacional de Coordinación Fiscal con las

Primary result

Total incomes minus primary expenditures as a percentage of total incomes for each province and year. Source: Dirección Nacional de Coordinación Fiscal con las Provincias.

Absenteeism

Logarithm of the percentage of absent voters in provincial elections in year t and replicates the same value until a new election was performed. In most provinces elections were carried out in 2003, 2007 and 2011. Source: Ministerio del Interior y Transporte.

Edification permits

Logarithm of edification permits measured in squared kilometers and normalized by the total population in each province and year. Sources: Dirección Nacional de Coordinación Fiscal con las Provincias and INDEC.

Oil prices

Average retail price of different fuels and oil types (gasoil, compressed natural gas, fuels) in all gas stations in each province and year. Source: Secretaria de Energía.