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Table 9 Industry tariffs and wage differential; formal and informal workers; IV estimation

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

Dep. var.: logarithm of workers’ hourly wages (1) (2)
A) Definition 1: share of small-size firms in industry
 = 1 if informal 1.245 [1.733] 0.038 [1.402]
 Log of tariffs − 0.062 [0.201] − 0.035 [0.167]
 = 1 if informal*Log of tariffs − 0.48 [0.582] − 0.07 [0.465]
 = 1 if informal*Log of tariffs*S   − 0.005 [0.151]
 Observations 20661 20661
B) Definition 2: indicator of small-size industry
 = 1 if informal 1.245 [1.733] 0.341 [1.588]
 Log of tariffs − 0.062 [0.201] − 0.024 [0.167]
 = 1 if informal*Log of tariffs − 0.48 [0.582] − 0.185 [0.514]
 = 1 if informal*Log of tariffs*S   0.019 [0.079]
 Observations 20661 20661
  1. Robust standard errors clustered by industry-year 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)