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Table 5 Enforcement of labor regulations and logarithm of hourly wages and percentiles of the distribution of the logarithm of hourly wages

From: Enforcement of labor market regulations: heterogeneous compliance and adjustment across gender

Dependent variable Formal wage employees Informal wage employees
Average 10th 50th 90th Average 10th 50th 90th
(1) (2) (3) (4) (5) (6) (7) (8)
Men
 Log(enforcement measure) 0.0465 0.0279 0.0126 0.0300 −0.0385 −0.0163 − 0.0282 −0.0315
[0.0218]** [0.0102]*** [0.00623]** [0.0117]** [0.0461] [0.0131] [0.0150]* [0.0118]***
 Observations 91,231 91,231 91,231 91,231 56,935 56,935 56,935 56,935
R2 0.302 0.718 0.864 0.768 0.229 0.810 0.858 0.820
Women
 Log(enforcement measure) −0.0844 −0.146 −0.115 −0.149 −0.252 − 0.249 −0.175 − 0.296
[0.0927] [0.126] [0.134] [0.172] [0.120]** [0.181] [0.0842]** [0.184]
 Observations 59,919 59,919 59,919 59,919 23,987 23,987 23,987 23,987
R2 0.341 0.650 0.835 0.685 0.220 0.773 0.809 0.692
Included controls:
 Individual characteristics Yes Yes Yes Yes Yes Yes Yes Yes
 Political business cycle variables Yes Yes Yes Yes Yes Yes Yes Yes
 Quality of institutions variable Yes Yes Yes Yes Yes Yes Yes Yes
 Development level variables Yes Yes Yes Yes Yes Yes Yes Yes
 Demand shocks variables Yes Yes Yes Yes Yes Yes Yes Yes
 Province fixed effects Yes Yes Yes Yes Yes Yes Yes Yes
 Sector fixed effects Yes Yes Yes Yes Yes Yes Yes Yes
 Year fixed effects Yes Yes Yes Yes Yes Yes Yes Yes
 Province-time trends Yes Yes Yes Yes Yes Yes Yes Yes
  1. Source: Own elaboration. Notes: IV estimations. Standard errors clustered at the province-sector level in brackets. Control variables defined as in Table 2
  2. Significant at ***1%, **5%, and *10%