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Table 10 Tetrachoric correlations between minimum wage adjustment channels

From: How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe

Latvia

Estonia

(obs=474)

(obs=500)

 

A

B

C

D

E

F

 

A

B

C

D

E

F

A

1

     

A

1

     

B

0.944

1

    

B

0.972

1

    

C

0.874

0.895

1

   

C

0.801

1

1

   

D

0.894

0.885

0.941

1

  

D

0.833

0.919

0.945

1

  

E

0.831

0.858

0.876

0.894

1

 

E

0.215

0.417

0.61

0.556

1

 

F

0.797

0.834

0.852

0.859

0.896

1

F

0.78

0.867

0.886

0.916

0.486

1

Lithuania

Hungary

(obs=489)

(obs=1955)

 

A

B

C

D

E

F

 

A

B

C

D

F

 

A

1

     

A

1

     

B

0.795

1

    

B

0.762

1

    

C

0.49

0.71

1

   

C

0.518

0.719

1

   

D

0.617

0.73

0.657

1

  

D

0.606

0.777

0.691

1

  

E

0.203

0.095

0.341

0.34

1

 

F

0.572

0.707

0.782

0.754

1

 

F

0.68

0.7

0.626

0.794

0.448

1

       

Romania

Bulgaria

(obs=2030)

(obs=528)

 

A

B

C

D

E

  

A

C

D

E

F

 

A

1

     

A

1

     

B

0.91

1

    

C

0.013

1

    

C

0.802

0.81

1

   

D

0.291

-0.49

1

   

D

0.795

0.85

0.912

1

  

E

-0.2

0.638

-0.56

1

  

E

0.107

0.165

0.252

0.326

1

 

F

-0.27

0.669

-0.37

0.722

1

 

Slovenia

Poland

(obs=493)

(obs=879)

 

A

B

C

D

E

  

A

B

C

D

E

F

A

1

     

A

1

     

B

0.947

1

    

B

0.917

1

    

C

0.869

0.892

1

   

C

0.613

0.729

1

   

D

0.869

0.871

0.946

1

  

D

0.797

0.845

0.874

1

  

E

0.795

0.833

0.857

0.873

1

 

E

0.551

0.624

0.645

0.765

1

 
       

F

0.765

0.837

0.819

0.926

0.744

1

  1. Notes: Binary measure of relevance used for all countries (1—Relevant, 0—Not relevant). Slovenian sample does not include firms without minimum wage employees
  2. A—We had to lay people off
  3. B—We were able to hire fewer people
  4. C—We had to increase product prices
  5. D—We had to reduce non-labour costs
  6. E—We had to increase the wages of other employees
  7. F—We increased productivity
  8. Sources: WDN3 survey, authors’ estimations