Insurance within the firm



Table 4

The earnings equation

This table reports the results of the IV regression for Δ In (Earnings/). earnings growth. Ex-
cluded instruments are lags of (log) earnings dated /-3 and t-4. Values in round brackets are
asymptotic standard errors; values in square brackets are p-values.

Variable                 Estimate

Δ Infearningsi-ɪ)          0.3309

(0.0345)

Male                     0.0063

(0.0010)

Age                      0.0016

(0.0004)

Age2 /100                -0.0208

(0.0046)

Productions              -0.0264

(0.0040)

Clerical                   -0.0210

(0.0040)

South                    -0.0030

(0.0015)

North                   -0.0012

(0.0011)

Year dummies            Yes

[0.0000]

Number of observations   91,575

44



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