Table 6 Multivariate probit model of the relevance of adjustment channels, average marginal effects (all countries; 3 adjustment channels)
From: How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe
(1) Lay off | (2) Increase prices | (3) Cut non-lab. costs | |
|---|---|---|---|
Presence of MW employees at the firm | 0.137*** | 0.237*** | 0.263*** |
(0.010) | (0.011) | (0.011) | |
Foreign ownership | − 0.034*** | − 0.077*** | − 0.071*** |
(0.011) | (0.014) | (0.014) | |
Presence of collective agreement | 0.025** | 0.045*** | 0.057*** |
(0.011) | (0.015) | (0.014) | |
Demand level (base: strong decrease) | |||
- Moderate decrease | − 0.021 | 0.028 | − 0.014 |
(0.015) | (0.022) | (0.021) | |
- Unchanged | − 0.075*** | − 0.033 | − 0.114*** |
(0.016) | (0.022) | (0.022) | |
- Moderate increase | − 0.095*** | 0.004 | − 0.088*** |
(0.017) | (0.023) | (0.023) | |
- Strong increase | − 0.172*** | − 0.027 | − 0.149*** |
(0.029) | (0.033) | (0.034) | |
Access to external finance (base: strong decrease) | |||
- Moderate decrease | − 0.027 | 0.066** | 0.029 |
(0.019) | (0.028) | (0.027) | |
- Unchanged | − 0.088*** | − 0.025 | − 0.070*** |
(0.018) | (0.026) | (0.025) | |
- Moderate increase | − 0.065*** | 0.028 | − 0.040 |
(0.022) | (0.030) | (0.029) | |
- Strong increase | 0.010 | 0.002 | − 0.038 |
(0.038) | (0.050) | (0.051) | |
Sectoral dummies (base: manufacturing) | |||
Electricity, gas, water | − 0.080 | − 0.240*** | − 0.210*** |
(0.060) | (0.081) | (0.071) | |
Construction | 0.005 | − 0.026 | − 0.013 |
(0.014) | (0.019) | (0.019) | |
Trade | − 0.027** | − 0.049*** | − 0.010 |
(0.012) | (0.015) | (0.015) | |
Business services | − 0.033*** | − 0.054*** | − 0.040*** |
(0.011) | (0.014) | (0.014) | |
Financial intermediation | − 0.015 | − 0.208*** | − 0.055 |
(0.038) | (0.047) | (0.041) | |
Arts | − 0.068* | 0.044 | − 0.022 |
(0.036) | (0.052) | (0.072) | |
Firm size dummies (base < 20 employees) | |||
20–49 employees | − 0.000 | − 0.030* | − 0.022 |
(0.014) | (0.018) | (0.017) | |
50–199 employees | − 0.005 | − 0.043** | − 0.021 |
(0.014) | (0.018) | (0.017) | |
200+ employees | − 0.002 | − 0.055*** | − 0.019 |
(0.016) | (0.021) | (0.020) | |
Country dummies (base: Poland) | |||
Latvia | − 0.017 | 0.010 | − 0.050* |
(0.022) | (0.029) | (0.029) | |
Lithuania | − 0.174*** | − 0.151*** | − 0.153*** |
(0.026) | (0.028) | (0.026) | |
Estonia | − 0.105*** | − 0.100*** | − 0.208*** |
(0.025) | (0.029) | (0.029) | |
Hungary | − 0.044*** | 0.078*** | − 0.053*** |
(0.015) | (0.020) | (0.020) | |
Bulgaria | 0.066*** | − 0.041 | − 0.403*** |
(0.020) | (0.029) | (0.033) | |
Slovenia | − 0.185*** | − 0.328*** | − 0.045 |
(0.024) | (0.031) | (0.028) | |
Romania | 0.043** | 0.133*** | 0.102*** |
(0.017) | (0.023) | (0.023) | |
Observations | 7011 | 7011 | 7011 |