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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)