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Table 8 Non-compliance and the level of the minimum wage

From: The dog that barks doesn’t bite: coverage and compliance of sectoral minimum wages in Italy

 

By region and firm size, quarterly data (2008 Q1–2015 Q3)

 

% of workers underpaid (v0)

Depth of violation (v1)

Average shortfall per underpaid worker (v1/v0)

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

 

Hourly wages

Monthly wages

Hourly wages

Monthly wages

Hourly wages

Monthly wages

Kaitz index

0.16***

0.33***

0.37***

0.25***

0.04***

0.06***

0.06***

0.04***

0.11

−0.20

0.07**

−0.00

 

(0.04)

(0.06)

(0.01)

(0.02)

(0.01)

(0.02)

(0.00)

(0.00)

(0.07)

(0.13)

(0.03)

(0.05)

Workforce characteristics

x

x

x

x

x

x

x

x

x

x

x

x

Region dummies

 

x

 

x

 

x

 

x

 

x

 

x

Firm size dummies

 

x

 

x

 

x

 

x

 

x

 

x

Time dummies

 

x

 

x

 

x

 

x

 

x

 

x

Firm size*region dummies

 

x

 

x

 

x

 

x

 

x

 

x

Region*time dummies

 

x

 

x

 

x

 

x

 

x

 

x

Firm size*time dummies

 

x

 

x

 

x

 

x

 

x

 

x

R-squared

0.58

0.82

0.59

0.76

0.45

0.73

0.39

0.60

0.05

0.26

0.06

0.28

Observations

3576

3576

3576

3576

3576

3576

3576

3576

3576

3576

3576

3576

  1. Note: The Kaitz index is the ratio of the minimum wage to the median wage by region, firm size groups over time. Source: Author’s calculation on LFS and ISTAT negotiated wages database. Workforce characteristics: gender, part-time, education (3 categories), age (3 categories), occupation (4 categories) and tenure (years)
  2. ***p < 0.01, **p < 0.05, *p < 0.1
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