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Table 13 Multivariate probit model of the relevance of adjustment channels, average marginal effects

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

Variables

(1)

(2)

(3)

Lay off

Increase prices

Reduce non-lab costs

Share of MW employees at the firm, dummies (base: no MW employees)

 1–19%

0.110***

0.182***

0.198***

(0.012)

(0.014)

(0.014)

 20–39%

0.142***

0.269***

0.289***

(0.014)

(0.017)

(0.017)

 40–59%

0.137***

0.286***

0.338***

(0.016)

(0.020)

(0.020)

 60–79%

0.169***

0.246***

0.342***

(0.016)

(0.020)

(0.021)

 80–100%

0.181***

0.284***

0.300***

(0.014)

(0.018)

(0.018)

 Foreign ownership

− 0.031***

− 0.076***

− 0.069***

(0.011)

(0.014)

(0.014)

 Presence of collective agreement

0.026**

0.045***

0.058***

(0.011)

(0.015)

(0.014)

Demand level (base: strong decrease)

 - Moderate decrease

− 0.021

0.027

− 0.014

(0.015)

(0.022)

(0.021)

 - Unchanged

− 0.074***

− 0.033

− 0.116***

(0.016)

(0.022)

(0.022)

 - Moderate increase

− 0.095***

0.002

− 0.090***

(0.016)

(0.023)

(0.022)

 - Strong increase

− 0.170***

− 0.030

− 0.151***

(0.029)

(0.033)

(0.034)

Access to external finance (base: strong decrease)

 - Moderate decrease

− 0.032*

0.059**

0.022

(0.019)

(0.028)

(0.027)

 - Unchanged

− 0.090***

− 0.026

− 0.071***

(0.018)

(0.026)

(0.025)

 - Moderate increase

− 0.066***

0.026

− 0.041

(0.022)

(0.030)

(0.029)

 - Strong increase

0.008

− 0.003

− 0.047

(0.037)

(0.050)

(0.051)

Sectoral dummies (base: manufacturing)

 Electricity, gas, water

− 0.073

− 0.233***

− 0.198***

(0.060)

(0.080)

(0.067)

 Construction

0.008

− 0.023

− 0.009

(0.014)

(0.019)

(0.019)

 Trade

− 0.024**

− 0.045***

− 0.004

(0.012)

(0.015)

(0.015)

 Business services

− 0.031***

− 0.052***

− 0.037***

(0.011)

(0.014)

(0.014)

 Financial intermediation

− 0.009

− 0.197***

− 0.045

(0.038)

(0.048)

(0.041)

 Arts

− 0.061*

0.050

− 0.014

(0.036)

(0.052)

(0.073)

Firm size dummies (base < 20 employees)

 20–49 employees

0.009

− 0.016

− 0.005

(0.014)

(0.018)

(0.017)

 50–199 employees

0.007

− 0.024

0.001

(0.014)

(0.018)

(0.018)

 200+ employees

0.018

− 0.025

0.014

(0.016)

(0.021)

(0.021)

Country dummies (base: Poland)

 Latvia

− 0.016

0.011

− 0.050*

(0.022)

(0.029)

(0.028)

 Lithuania

− 0.177***

− 0.155***

− 0.155***

(0.026)

(0.027)

(0.026)

 Estonia

− 0.097***

− 0.093***

− 0.197***

(0.025)

(0.029)

(0.029)

 Hungary

− 0.055***

0.053**

− 0.087***

(0.015)

(0.021)

(0.020)

 Bulgaria

0.064***

− 0.046

− 0.411***

(0.020)

(0.029)

(0.033)

 Slovenia

− 0.182***

− 0.319***

− 0.036

(0.024)

(0.031)

(0.027)

 Romania

0.032*

0.121***

0.087***

(0.017)

(0.023)

(0.022)

 Observations

7010

7010

7010

  1. Note: Standard errors in parentheses. *p < 0.1, **p < 0.05, ***p < 0.01. Dependent variable—binary measure of relevance used for all countries (1—Relevant, 0—Not relevant). For detailed variable description see Table 11 in the Appendix
  2. The model is used for the calculation of the predicted probabilities in Fig. 1. Sources: WDN3 survey, authors’ estimations