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Table 10 Industry tariffs and wage differential between formal and informal workers; switching regression model.

From: Trade liberalization and informality in Argentina: exploring the adjustment mechanisms

  (1) (2)
Formal Informal Formal Informal
A) Definition 1: share of small-size firms in industry
 Log of tariffs − 0.164 [1.512] − 0.297 [0.981] 0.001 [0.283] − 0.126 [0.493]
 Log of tariffs*S 0.288 [2.262] 0.461 [− 3.871] − 0.029 [0.104] − 0.050 [0.213]
 Observations 15,489 5,172 15,489 5,172
 \(R^{2}\) 0.68 0.58 0.68 0.58
B) Definition 2: indicator of small-size industry
 Log of tariffs − 0.152 [0.126] − 0.234 [0.505] − 0.100 [0.162] − 0.168 [0.383]
 Log of tariffs*S − 0.963 [0.885] − 0.349 [0.678] − 0.034 [0.090] − 0.065 [0.134]
 Observations 15,489 5,172 15,489 5,172
 \(R^{2}\) 0.67 0.56 0.68 0.58
  1. 500 bootstrapped standard errors in brackets. Industry size S defined based on the share of small firms in each industry in 1980 (panel A) and as a dummy indicating small industries in 1980 (panel B)