Table 3: Estimating the Effects of Minimum Wages on Wages, by Sector
(Dependent Variable: Log of Hourly Wage)
|
Coefficient on the Log of Real Minimum Wage | ||||
|
_______B |
SE |
N |
R-squared | |
|
Covered Sectors Urban Formal : large enterprises___________ |
0^03a |
- ~0~1i' ~ ~ |
"- 20o2440 ~ |
04354" " |
|
Urban Informal 1: small enterprises__________ |
0.149 |
0.096 |
7,211 |
0.2008 |
|
Rural Informal 1: large enterprise____________ |
0.164a |
0.038 |
33,538 |
0.3515 |
|
Rural Informal 2: small enterprises__________ |
0.396a |
0.111 |
20,300 |
0.1832 |
|
Uncovered Sectors Urban Informal 2: self-employed____________ |
“193 |
~ ~0~45 ~ " |
9,560" |
0""9"" |
|
Rural Informal 3: |
-0.047 |
ÔÏ38 |
21,775 |
0.1551 |
a = significant at 1%
b = significant at 5%
Notes:
1The data used in all regressions are weighted using the sample weights. Explanatory
variables in the regressions also include: dummy variables for each year, dummy
variables for each industry, occupation and skill category in the minimum wage legislation,
value-added by industry, and several individual-level variables including years of
education, potential experience, experience squared, experience cubed and gender along
with full interactions among these individual-level variables and the year dummies. See
Table A2 for full results.
2Reported significance levels are based on estimates of the standard errors that are
robust to heteroskedasticity and serial correlation and are corrected for clustering caused
by including both micro-level data and a more aggregated variable (the minimum wage
variable) in the regressions.
24