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Table 2 Industry tariffs and informality interaction with share of small size-firms at the industry level in 1980 OLS and IV estimation

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

Dep. var.: informality status of workers (1) (2) (3) (4)
A) OLS
 Log of tariffs 0.011 [0.015] 0.044 [0.018]** 0.043 [0.018]** 0.049 [0.019]**
 Log of tariffs*S   − 0.143 [0.037]*** − 0.144 [0.037]*** − 0.165 [0.040]***
 Observations 26795 26795 26795 26795
 R2 0.18 0.18 0.18 0.18
B) IV-Second-stage results: informality
 Log of tariffs − 0.178 [0.208] 0.087 [0.083] 0.091 [0.083] 0.1 [0.084]
 Log of tariffs*S   − 0.202 [0.054]*** − 0.2 [0.055]*** − 0.257 [0.065]***
 Observations 26795 26795 26795 26795
C) First-stage results: tariffs
 Log of tariffs
  \(z^{1}\) − 0.037 [0.066] − 0.168 [0.080]** − 0.168 [0.080]** − 0.158 [0.081]*
  \(z^{1}\)*S   0.06 [0.020]*** 0.06 [0.020]*** 0.061 [0.022]***
  \(z^{2}\) − 0.147 [0.112] − 0.198 [0.107]* − 0.198 [0.107]* − 0.201 [0.111]*
  \(z^{2}\)*S   0.31 [0.220] 0.31 [0.220] 0.315 [0.221]
  \(R^2\) 0.74 0.74 0.74 0.74
 Log of tariffs*S
  \(z^{1}\)   − 0.05 [0.024]** − 0.05 [0.024]** − 0.045 [0.024]*
  \(z^{1}\)*S   − 0.076 [0.009]*** − 0.076 [0.009]*** − 0.073 [0.009]***
  \(z^{2}\)   0.024 [0.031] 0.022 [0.031] 0.018 [0.031]
  \(z^{2}\)*S   − 0.145 [0.080]* − 0.147 [0.080]* − 0.145 [0.082]*
  \(R^2\)   0.99 0.99 0.99
Kleibergen-Papp Wald F 1.09 2.38 2.38 2.08
Anderson-Rubin Wald F test (p-value) 0.0358 0.0003 0.0004 0.0000
  1. Cross-section panel regressions of sectoral informality on industry tariffs. Industry size S is defined based on the share of small firms in each industry in 1980. In panels B and C, \(z^1\) is the instrument defined using tariffs in 1980; \(z^2\) is the instrument based on exchange rates of main partners. Robust standard errors clustered at the industry-year level in brackets. The Stock-Yogo critical values for a 5% and 10% maximal IV relative bias are 19.93 and 11.59 in column (1) and 11.04 and 7.56 in columns (2) to (4) respectively
  2. *** Significant at 1%
  3. ** Significant at 5%
  4. * Significant at 10%