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Table 4 Wage decomposition by formal/informal sector

From: Migration magnet: the role of work experience in rural–urban wage differentials

Informal sector

Explained

Unexplained

  Experience

−0.038***

0.389**

 

(0.012)

(0.167)

  Experience2

0.040***

−0.185**

 

(0.012)

(0.091)

  High education

0.032***

0.003

 

(0.007)

(0.013)

  Raven test

0.006*

0.006

 

(0.003)

(0.054)

  Other

0.180***

−0.115

 

(0.026)

(0.113)

  N

2671

Formal Sector

Explained

Unexplained

  Experience

−0.036*

0.058

 

(0.020)

(0.241)

  Experience2

0.039**

0.035

 

(0.019)

(0.130)

  High education

0.036***

0.037

 

(0.010)

(0.034)

  Raven test

0.012**

0.085

 

(0.005)

(0.087)

  Other

0.023

−0.065

 

(0.029)

(0.189)

  N

1428

  1. Standard errors in parentheses. *, ** and *** denote significance level of 10%, 5% and 1%, respectively. OLS ordinary least squares. The decomposition is formulated from the viewpoint of the rural population. For the underlying regressions see wage regression tables. Other includes 15 state dummies, work, individual and household characteristics