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Table 3 Industry tariffs and informality interaction with indicator variable of small-size industry 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] 0.02 [0.015] 0.02 [0.015] 0.023 [0.015]
 Log of tariffs*S   − 0.038 [0.018]** − 0.039 [0.018]** − 0.045 [0.019]**
 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] − 0.021 [0.065] − 0.019 [0.064] − 0.02 [0.067]
 Log of tariffs*S   − 0.086 [0.029]*** − 0.086 [0.029]*** − 0.105 [0.037]***
 Observations 26795 26795 26795 26795
C) First-stage results: tariffs
 Log of tariffs
  \(z^{1}\) − 0.037 [0.066] − 0.141 [0.068]** − 0.142 [0.068]** − 0.13 [0.072]*
  \(z^{1}\)*S   0.035 [0.010]*** 0.035 [0.010]*** 0.036 [0.011]***
  \(z^{2}\) − 0.147 [0.112] − 0.225 [0.108]** − 0.226 [0.108]** − 0.229 [0.112]**
  \(z^{2}\)*S   0.255 [0.084]*** 0.255 [0.084]*** 0.255 [0.084]***
  \(R^{2}\) 0.74 0.75 0.75 0.75
 Log of tariffs*S
  \(z^{1}\)   − 0.059 [0.035]* − 0.061 [0.035]* − 0.028 [0.034]
  \(z^{1}\)*S   − 0.082 [0.006]*** − 0.081 [0.006]*** − 0.078 [0.007]***
  \(z^{2}\)   − 0.023 [0.064] − 0.028 [0.064] − 0.043 [0.068]
  \(z^{2}\)*S   0.051 [0.066] 0.047 [0.066] 0.05 [0.064]
  \(R^{2}\)   0.99 0.99 0.99
Kleibergen-Papp Wald F 1.09 4.52 4.52 4.02
Anderson-Rubin Wald F test (p-value) 0.0358 0.0136 0.0133 0.0056
  1. Cross-section panel regressions of sectoral informality on industry tariffs. Industry size S is a dummy variable indicating small industries 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%