Legal Minimum Wages and the Wages of Formal and Informal Sector Workers in Costa Rica



Table A3: OLS Regressions, Dependent Variable: Ln wage

Formal

__________________________Informal Sector_________________________

Urban

Large Scale

Urban       Rural       Rural       Urban       Rural

Small Scale Large Scale Small Scale Self-Emp. Self-Emp.

Ln Min. Wage

0.103 a
(0.031)

0.149       0.164 a      0.396 a     0.193      -0.047

(0.096)      (0.038)      (0.111)      (0.145)      (0.138)

Schooling

....................0.044 a
(0.005)

..........0.083""a.........................0"."03'9""a.........................0—...a.........................0.010...............................0_5...b...

(0.010)      (0.005)      (0.010)      (0.024)      (0.019)

Experience

..........0';0i9""b'"

(0.009)

..........0.071 a.........................0.016'a.........................0.051 a......................-0.019...............................0.022.........

(0.011)      (0.007)      (0.010)      (0.023)      (0.015)

Experience2

....................0.000.........
(0.000)

.................-0.001 a.........................0.000............................-0.001 a.........................0.001................................0.000.........

(0.000)      (0.000)      (0.000)      (0.001)      (0.000)

Experience3

.......2∕78e-06..........

(4.04e-06)

.......9.076-06-° -3.26e-06..................4.08e-06...............-6.31e-06...................1.17e-06.........

(3.71e-06)   (3.78e-06)   (3.58e-06)      (0.000)   (3.93e-06)

Gender

...........-0.057..........

(0.052)

..........0.038...............................0.026'...............................0~19∙5∙∙∙∙b∙.....................-0.499-a......................-0.176

(0.088)      (0.048)      (0.085)      (0.176)      (0.127)

School Exp.

....................0.001.....c'"

(0.001)

.................-0.004""a.........................0.001.....b......................-0.001.................................0.002...............................0.000.........

(0.001)      (0.001)      (0.001)      (0.002)      (0.002)

School • Exp2

..........0.000""b'"

(0.000)

..........0.000...............................0.00'0""a.........................0.000...............................0.000...............................0.000.........

(0.000)      (0.000)      (0.000)      (0.000)      (0.000)

School • Exp3

.......6.97e-07"b"'

(2.91e-07)

___...................____a 9.46e-07.B. 6.29e-07..................510e-07.........

(5.81e-07) (2.91e-07) (4.23e-07) (6.20e-07) (5.15e-07)

Exp • Gender

....................0.007..........
(0.006)

....................0.008...............................0.0—-a.........................0.003...............................0.029^.........................0.012

(0.009)      (0.005)      (0.008)      (0.017)      (0.011)

Exp2 • Gender

..........0.000.........

(0.000)

..........0.000............................-0.001 b.........................0.000............................-0.001.................................0.000.........

(0.000)      (0.000)      (0.000)      (0.001)      (0.000)

Exp3 • Gender

■"-2.57e-06..........

(3.31e-06)

.......2.93e-06..................5.480-06...................Γ18e-06..................4787e-06..................4.55e-07.........

(3.56e-06) (3.57e-06)  (3.18e-06)   (5.54e-06)   (3.54e-06)

School • Gender

..........0.005.........

..............(0.003)..........

..........0.004............................-0.003............................-0.0'1"3""b'........................0.060.c.........................0.077

(0.007)      (0.004)      (0.005)      (0.010)      (0.008)

YR88......................................................................

.............-0.039............................-0.038-°......................-0.003.....................................................................................0.078'"°'"

(0.051)      (0.015)      (0.034)                     (0.045)

YR 89......................................................................

....................0.015.........
(0.022)

..........0.013..................................................................................-0.022...............................0.108...............................0.152"a'"

(0.045)                   (0.030)      (0.068)      (0.049)

YR"90......................................................................

..........0.022.........

(0.022)

...........-0.002............................-0.037""c.........................0.055-c......................-0.004

(0.047)      (0.020)      (0.033)      (0.043)

YR"91........................................................................

...........-0.039.........

(0.024)

...........-0.092""b......................-0.015...............................0.022............................-0.003............................-0.009

(0.043)      (0.016)      (0.037)      (0.045)      (0.052)

YR"92......................................................................

...........-0.021...........
(0.022)

...........-0.056,,"a............................................................................-0.022............................-0.015

(0.015)                   (0.040)      (0.040)

YR'"93......................................................................

..........0.076"a'"

(0.025)

..........0.114""a.........................0.043'"b.........................0."1"57""a.........................0.106.a.........................0.168.a.

(0.046)      (0.018)      (0.029)      (0.037)      (0.041)

'Y"R"94'......................................................................

....................0.122"'a"'

(0.024)

....................0.115'"a.........................0—.a.........................0._..a.........................0.192.a.........................0.157-8-

(0.042)      (0.015)      (0.030)      (0.055)      (0.053)

YR"95......................................................................

..........0.086"a'"

(0.023)

..........0.125,,"b.........................0.046.3.........................0.145.a.........................0.148.a.........................0..140...a...

(0.052)      (0.016)      (0.028)      (0.046)      (0.048)

YR"96......................................................................

..........0)050"c"

(0.027)

..........0.107""a......................-0.02'4""c.........................0.099'"a.........................0.141.a.........................0.070

(0.042)      (0.014)      (0.034)      (0.049)      (0.048)

'Y'R"97'......................................................................

....................Q".Q44""c'"
(0.024)

....................0Γ074c.........................0.002...............................0.024...............................0.098'"b'........................0,.171""a,"

(0.043)      (0.016)      (0.033)      (0.048)      (0.051)

YR"98'......................................................................

..........0.0'93'"a'"

(0.025)

..........0.147°.........................0"∙θ29∙∙∙∙c.........................0.141 a.........................0.119" b........................0.191'" a'"

(0.046)      (0.016)      (0.027)      (0.050)      (0.058)

YR"99......................................................................

..........0.103"a'"

(0.025)

..........0.141 a.........................0.066 "a.........................0.1—.a.........................0.029...............................0.173.a.

(0.044)      (0.016)      (0.029)      (0.050)      (0.058)

Sectorial Value added

""-6.,60e-0'8'''c'''

(3.93e-08)

",,-,1".39e-0,7...................1.23-08.......................................1_—..................2.8ge-08.........

(1.16e-07)   (3.41e-08) (6.80e-08) (1.21e-07) (1.28e-07)

Constant

....................4.171...........
(0.557)

....................4.171.................................4.617'................................1.449...............................4.666...............................5.833.........

(0.557)      (0.827)      (0.635)      (0.334)      (0.782)

No of Observations
No. of Clusters
r2________________

20240

2415

0.435

7211      33538      20300       9560      21775

972       2231       1129       1122       1195

0.201_______0.352       0.183       0.139       0.155

a = significant at 1%; b = significant at 5%.

29



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