From: Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
Dep. var.: residual wage differential | OLS | IV | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
A) Definition 1: share of small-size firms in industry | ||||||
Log of average tariff | − 0.116 [0.058]* | − 0.117 [0.068]* | − 0.003 [0.112] | − 0.274 [0.140]* | − 0.358 [0.178]* | − 0.377 [0.203]* |
Log of average tariff * NT | − 0.121 [0.105] | − 0.108 [0.112] | − 0.130 [0.124] | − 0.258 [0.195] | − 0.202 [0.216] | − 0.261 [0.244] |
Observations | 64 | 64 | 64 | 64 | 64 | 64 |
\(R^2\) | 0.45 | 0.46 | 0.505 | |||
First stage result | ||||||
Log of average tariff | ||||||
Average \(z^2\) | − 0.633 [0.190]*** | − 0.505 [0.174]*** | − 0.474 [0.137]*** | |||
Average \(z^2\) * NT | 0.006 [0.214] | − 0.044 [0.198] | 0.110 [0.158] | |||
\(R^2\) | 0.34 | 0.49 | 0.69 | |||
Log of average tariff * NT | ||||||
Average \(z^2\) | − 0.059 [0.156] | 0.049 [0.143] | 0.062 [0.136] | |||
Average \(z^2\) * NT | − 0.533 [0.176]*** | − 0.579 [0.162]*** | − 0.510 [0.156]*** | |||
\(R^2\) | 0.98 | 0.99 | 0.99 | |||
B) Definition 2: indicator of small-size industry | ||||||
Log of average tariff | − 0.116 [0.058]* | − 0.117 [0.068]* | − 0.004 [0.112] | − 0.275 [0.139]* | − 0.358 [0.177]* | − 0.378 [0.202]* |
Log of average tariff * NT | − 0.121 [0.105] | − 0.107 [0.111] | − 0.129 [0.124] | − 0.256 [0.195] | − 0.201 [0.216] | − 0.260 [0.243] |
Observations | 64 | 64 | 64 | 64 | 64 | 64 |
\(R^2\) | 0.45 | 0.46 | 0.50 | |||
First stage result | ||||||
Log of average tariff | ||||||
Average \(z^2\) | − 0.633 [0.190]*** | − 0.505 [0.174]*** | − 0.474 [0.137]*** | |||
Average \(z^2\) * NT | 0.006 [0.214] | − 0.044 [0.198] | 0.110 [0.158] | |||
\(R^2\) | 0.34 | 0.49 | 0.688 | |||
Log of average tariff * NT | ||||||
Average \(z^2\) | − 0.058 [0.156] | 0.048 [0.143] | 0.062 [0.135] | |||
Average \(z^2\) * NT | − 0.533 [0.176]*** | − 0.579 [0.162]*** | − 0.510 [0.156]*** | |||
\(R^2\) | 0.98 | 0.99 | 0.99 | |||
Log relative supply | Yes | Yes | Yes | Yes | Yes | Yes |
Log relative supply of informal workers | No | Yes | Yes | No | Yes | Yes |
Log relative supply of skilled workers | No | Yes | Yes | No | Yes | Yes |
Linear time trend | No | No | Yes | No | No | Yes |