The Impact of Minimum Wages on Wage Inequality and Employment in the Formal and Informal Sector in Costa Rica

William Davidson Institute Working Paper 479

Table 2:

Impact of Changes in the Toughness of
the Minimum Wage on Inequaltiy

	Range of Toughness Measure
	Lowest	Median	Highest
Increase in	(30.0)	(55.5)	(89.0)
Gini	-0.0195	-0.0093	0.0041
Theil	-0.0346	-0.0173	0.00552

Table 3:

Impact of Minimum wages on the Log of Employment

	Total employment	Covered Sector Employment	Self- Employment
Toughness	0.019 ^c	0.0211 ^c	0.016
	(0.011)	(0.0118)	(0.19)
(Toughness)²	-0.00014 ^c	-0.00014 ^c	-0.00018
	(0.00007)	(0.00009)	(0.00014)
Time Dummies	yes	yes	yes
Industry Dummies	yes	yes	yes
Adjusted R²	0.97	0.97	0.97
No. of Observations	91	91	91

^aSignificant at the 1% level; ^bsignificant at the 5% level; ^csignificant at
the 10% level.

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