Table 12 Multivariate probit of adjustment channel relevance, average marginal effects (all channels; sample restricted to Baltic countries and Poland)
From: How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe
(1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
Lay off | Hiring | Increase prices | Reduce non-lab costs | Increase wages | Increase prod. | |
Share of MW employees at the firm, dummies (base: no MW employees) | ||||||
1–19% | 0.093*** | 0.133*** | 0.188*** | 0.184*** | 0.153*** | 0.200*** |
(0.016) | (0.018) | (0.021) | (0.022) | (0.023) | (0.023) | |
20–39% | 0.145*** | 0.196*** | 0.244*** | 0.275*** | 0.257*** | 0.238*** |
(0.021) | (0.025) | (0.033) | (0.034) | (0.037) | (0.038) | |
40–59% | 0.158*** | 0.220*** | 0.301*** | 0.308*** | 0.196*** | 0.260*** |
(0.023) | (0.029) | (0.038) | (0.038) | (0.042) | (0.043) | |
60–79% | 0.164*** | 0.267*** | 0.302*** | 0.394*** | 0.247*** | 0.276*** |
(0.024) | (0.027) | (0.039) | (0.039) | (0.043) | (0.042) | |
80–100% | 0.146*** | 0.199*** | 0.313*** | 0.294*** | 0.137*** | 0.249*** |
(0.019) | (0.023) | (0.029) | (0.029) | (0.035) | (0.032) | |
Foreign ownership | − 0.061*** | − 0.086*** | − 0.144*** | − 0.150*** | − 0.136*** | − 0.125*** |
(0.019) | (0.023) | (0.026) | (0.026) | (0.026) | (0.027) | |
Presence of collective agreement | 0.010 | − 0.002 | − 0.015 | − 0.021 | 0.006 | 0.027 |
(0.022) | (0.027) | (0.033) | (0.033) | (0.034) | (0.035) | |
Demand level (base: strong decrease) | ||||||
- Moderate decrease | 0.006 | − 0.002 | − 0.009 | − 0.030 | 0.027 | − 0.029 |
(0.020) | (0.027) | (0.036) | (0.035) | (0.037) | (0.038) | |
- Unchanged | − 0.039* | − 0.013 | 0.003 | − 0.047 | 0.012 | − 0.041 |
(0.022) | (0.028) | (0.037) | (0.036) | (0.039) | (0.039) | |
- Moderate increase | − 0.042** | − 0.029 | − 0.010 | − 0.057* | 0.014 | − 0.043 |
(0.021) | (0.027) | (0.035) | (0.034) | (0.037) | (0.038) | |
- Strong increase | − 0.104*** | − 0.048 | − 0.015 | − 0.075 | 0.004 | − 0.080 |
(0.032) | (0.038) | (0.046) | (0.047) | (0.049) | (0.049) | |
Access to external finance (base: strong decrease) | ||||||
- Moderate decrease | − 0.006 | 0.009 | 0.083* | 0.096** | 0.039 | 0.089* |
(0.026) | (0.035) | (0.048) | (0.047) | (0.049) | (0.053) | |
- Unchanged | − 0.014 | − 0.016 | 0.006 | − 0.001 | − 0.051 | 0.026 |
(0.023) | (0.030) | (0.041) | (0.041) | (0.042) | (0.045) | |
- Moderate increase | − 0.005 | − 0.005 | 0.019 | 0.010 | − 0.032 | 0.076 |
(0.028) | (0.035) | (0.047) | (0.047) | (0.049) | (0.052) | |
- Strong increase | 0.004 | 0.023 | − 0.018 | − 0.118 | − 0.089 | 0.013 |
(0.044) | (0.052) | (0.076) | (0.073) | (0.078) | (0.084) | |
Sectoral dummies (base: manufacturing) | ||||||
Electricity, gas, water | − 0.018 | − 0.072 | − 0.201*** | − 0.191** | − 0.166* | − 0.214*** |
(0.045) | (0.063) | (0.078) | (0.077) | (0.085) | (0.074) | |
Construction | 0.014 | 0.016 | − 0.025 | − 0.023 | − 0.026 | − 0.019 |
(0.019) | (0.023) | (0.030) | (0.031) | (0.033) | (0.033) | |
Trade | − 0.006 | − 0.013 | − 0.060** | − 0.050* | − 0.043 | − 0.111*** |
(0.017) | (0.021) | (0.025) | (0.027) | (0.028) | (0.028) | |
Business services | − 0.019 | − 0.035* | − 0.069*** | − 0.045* | − 0.040 | − 0.099*** |
(0.017) | (0.020) | (0.025) | (0.025) | (0.027) | (0.027) | |
Financial intermediation | 0.022 | − 0.048 | − 0.189*** | − 0.037 | − 0.134** | − 0.120** |
(0.042) | (0.046) | (0.065) | (0.055) | (0.063) | (0.060) | |
Arts | − 0.026 | − 0.163 | − 0.185 | 0.106 | ||
(0.152) | (0.211) | (0.217) | (0.327) | |||
Firm size dummies (base < 20 employees) | ||||||
20–49 employees | − 0.026* | − 0.038** | − 0.027 | − 0.028 | − 0.001 | − 0.025 |
(0.016) | (0.019) | (0.023) | (0.024) | (0.025) | (0.025) | |
50–199 employees | 0.011 | 0.003 | 0.004 | 0.017 | − 0.003 | 0.008 |
(0.016) | (0.019) | (0.025) | (0.025) | (0.027) | (0.027) | |
200+ employees | − 0.020 | − 0.039 | 0.008 | 0.025 | 0.063* | 0.016 |
(0.025) | (0.031) | (0.037) | (0.036) | (0.038) | (0.039) | |
Country dummies (base: Poland) | ||||||
Latvia | − 0.020 | − 0.088*** | − 0.019 | − 0.068** | − 0.055* | − 0.093*** |
(0.016) | (0.021) | (0.027) | (0.028) | (0.028) | (0.030) | |
Lithuania | − 0.116*** | − 0.092*** | − 0.123*** | − 0.127*** | − 0.130*** | − 0.058** |
(0.018) | (0.019) | (0.024) | (0.023) | (0.026) | (0.025) | |
Estonia | − 0.069*** | − 0.169*** | − 0.064** | − 0.164*** | − 0.170*** | − 0.227*** |
(0.018) | (0.022) | (0.026) | (0.026) | (0.027) | (0.028) | |
Observations | 2083 | 2083 | 2083 | 2083 | 2083 | 2083 |