Table 5 Multivariate probit model of the relevance of adjustment channels, average marginal effects (all channels; sample restricted to the 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 | Hire less | Increase prices | Cut non-lab. costs | Increase wages | Increase prod. | |
Presence of MW employees at the firm | 0.124*** | 0.175*** | 0.241*** | 0.248*** | 0.175*** | 0.222*** |
(0.013) | (0.014) | (0.017) | (0.017) | (0.019) | (0.018) | |
Foreign ownership, dummy | − 0.065*** | − 0.091*** | − 0.149*** | − 0.153*** | − 0.133*** | − 0.126*** |
(0.019) | (0.023) | (0.026) | (0.026) | (0.026) | (0.027) | |
Presence of collective agreement | 0.007 | − 0.006 | − 0.015 | − 0.027 | 0.002 | 0.030 |
(0.022) | (0.027) | (0.034) | (0.034) | (0.035) | (0.036) | |
Demand level (base: strong decrease) | ||||||
- Moderate decrease | 0.008 | − 0.005 | − 0.007 | − 0.033 | 0.023 | − 0.031 |
(0.021) | (0.027) | (0.036) | (0.035) | (0.037) | (0.038) | |
- Unchanged | − 0.038* | − 0.017 | 0.004 | − 0.047 | 0.008 | − 0.044 |
(0.022) | (0.028) | (0.037) | (0.036) | (0.039) | (0.039) | |
- Moderate increase | − 0.043** | − 0.036 | − 0.010 | − 0.061* | 0.010 | − 0.046 |
(0.021) | (0.027) | (0.035) | (0.035) | (0.037) | (0.038) | |
- Strong increase | − 0.106*** | − 0.054 | − 0.016 | − 0.082* | 0.000 | − 0.083* |
(0.033) | (0.039) | (0.046) | (0.047) | (0.049) | (0.049) | |
Access to external finance (base: strong decrease) | ||||||
- Moderate decrease | − 0.005 | 0.010 | 0.083* | 0.095** | 0.039 | 0.092* |
(0.027) | (0.036) | (0.049) | (0.048) | (0.049) | (0.053) | |
- Unchanged | − 0.018 | − 0.023 | − 0.001 | − 0.012 | − 0.055 | 0.025 |
(0.024) | (0.030) | (0.042) | (0.041) | (0.042) | (0.045) | |
- Moderate increase | − 0.009 | − 0.011 | 0.009 | − 0.003 | − 0.036 | 0.073 |
(0.029) | (0.036) | (0.047) | (0.047) | (0.049) | (0.052) | |
- Strong increase | 0.001 | 0.023 | − 0.022 | − 0.119 | − 0.092 | 0.010 |
(0.046) | (0.054) | (0.077) | (0.077) | (0.078) | (0.085) | |
Sectoral dummies (base: manufacturing) | ||||||
Electricity, gas, water | − 0.022 | − 0.079 | − 0.211*** | − 0.200** | − 0.165* | − 0.221*** |
(0.044) | (0.062) | (0.079) | (0.082) | (0.087) | (0.077) | |
Construction | 0.010 | 0.012 | − 0.033 | − 0.031 | − 0.026 | − 0.023 |
(0.020) | (0.024) | (0.030) | (0.031) | (0.033) | (0.033) | |
Trade | − 0.010 | − 0.019 | − 0.067*** | − 0.056** | − 0.043 | − 0.116*** |
(0.017) | (0.021) | (0.026) | (0.027) | (0.028) | (0.028) | |
Business services | − 0.021 | − 0.038* | − 0.075*** | − 0.049* | − 0.038 | − 0.102*** |
(0.017) | (0.021) | (0.025) | (0.026) | (0.027) | (0.027) | |
Financial intermediation | 0.015 | − 0.062 | − 0.211*** | − 0.055 | − 0.125** | − 0.129** |
(0.043) | (0.046) | (0.064) | (0.057) | (0.062) | (0.060) | |
Arts | − 0.022 | − 0.136 | − 0.176 | 0.118 | ||
(0.160) | (0.218) | (0.227) | (0.327) | |||
Firm size dummies (base < 20 employees) | ||||||
20–49 employees | − 0.033** | − 0.045** | − 0.043* | − 0.043* | − 0.001 | − 0.031 |
(0.016) | (0.019) | (0.023) | (0.024) | (0.025) | (0.025) | |
50–199 employees | − 0.004 | − 0.016 | − 0.026 | − 0.013 | − 0.007 | − 0.005 |
(0.015) | (0.019) | (0.025) | (0.025) | (0.026) | (0.027) | |
200+ employees | − 0.041* | − 0.066** | − 0.034 | − 0.016 | 0.053 | − 0.007 |
(0.024) | (0.031) | (0.037) | (0.036) | (0.037) | (0.039) | |
Country dummies (base: Poland) | ||||||
Latvia | − 0.020 | − 0.088*** | − 0.022 | − 0.066** | − 0.049* | − 0.093*** |
(0.016) | (0.022) | (0.027) | (0.028) | (0.028) | (0.030) | |
Lithuania | − 0.113*** | − 0.089*** | − 0.120*** | − 0.123*** | − 0.129*** | − 0.054** |
(0.018) | (0.019) | (0.024) | (0.023) | (0.026) | (0.025) | |
Estonia | − 0.078*** | − 0.182*** | − 0.077*** | − 0.177*** | − 0.170*** | − 0.230*** |
(0.018) | (0.022) | (0.026) | (0.026) | (0.026) | (0.028) | |
Observations | 2083 | 2083 | 2083 | 2083 | 2083 | 2083 |