From: Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
Dep. var.: residual informality rate | OLS | IV | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Definition 1: share of small-size firms in industry | ||||||
Log tariff | 0.19 [0.012]*** | 0.192 [0.012]*** | 0.192 [0.0130]*** | 0.147 [0.027]*** | 0.140 [0.037]*** | 0.144 [0.0343]*** |
Observations | 32 | 32 | 32 | 32 | 32 | 32 |
\(R^2\) | 0.91 | 0.91 | 0.918 | |||
First stage result | ||||||
Average \(z^2\) | − 0.398 [0.094]*** | − 0.435 [0.117]*** | − 0.441 [0.119]*** | |||
Observations | 32 | 32 | 32 | |||
\(R^2\) | 0.72 | 0.74 | 0.74 | |||
Definition 2: indicator of small-size industry | ||||||
Log tariff | 0.121 [0.012]*** | 0.12 [0.012]*** | 0.120 [0.0128]*** | 0.077 [0.022]*** | 0.064 [0.036]* | 0.0659 [0.0350]* |
Observations | 32 | 32 | 32 | 32 | 32 | 32 |
\(R^2\) | 0.92 | 0.92 | 0.93 | |||
First stage result | ||||||
Average \(z^2\) | − 0.416 [0.097]*** | − 0.434 [0.120]*** | − 0.437 [0.122]*** | |||
Observations | 32 | 32 | 32 | |||
\(R^2\) | 0.73 | 0.74 | 0.75 | |||
Control variables | ||||||
Log relative supply | Yes | Yes | Yes | Yes | Yes | Yes |
Educational level of the labor force | Yes | Yes | Yes | Yes | Yes | Yes |
Fraction of small firms | No | Yes | Yes | No | Yes | Yes |
Linear time trend | No | No | Yes | No | No | Yes |