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Table 7 Wage regressions for informal sector workers

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

 

All OLS

All Heck

All OLS

All Heck

Rural OLS

Rural Heck

Urban OLS

Urban Heck

Urban

0.099***

0.093***

−0.051

−0.048

--

--

--

--

 

(0.032)

(0.034)

(0.103)

(0.103)

    

Exp × Urban

--

--

0.015**

0.014**

--

--

--

--

   

(0.007)

(0.007)

    

Exp2 × Urban

--

--

−0.000**

−0.000**

--

--

--

--

   

(0.000)

(0.000)

    

High edu. ×Urban

--

--

−0.035

−0.036

--

--

--

--

   

(0.074)

(0.073)

    

Raven × Urban

--

--

−0.009

−0.009

--

--

--

--

   

(0.105)

(0.106)

    

Experience

0.014***

0.016***

0.005

0.007

0.003

0.004

0.020***

0.023***

 

(0.004)

(0.004)

(0.005)

(0.006)

(0.006)

(0.006)

(0.005)

(0.006)

Experience2

−0.000***

−0.000***

−0.000

−0.000*

−0.000

−0.000

−0.000***

−0.000***

 

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

High education

0.181***

0.174***

0.213***

0.206***

0.173**

0.150**

0.189***

0.193***

 

(0.038)

(0.037)

(0.066)

(0.066)

(0.077)

(0.076)

(0.045)

(0.045)

Raven test

0.106**

0.111**

0.109

0.113

0.093

0.101

0.106

0.110

 

(0.053)

(0.054)

(0.079)

(0.081)

(0.080)

(0.081)

(0.071)

(0.074)

Hours/year

−0.000***

−0.000***

−0.000***

−0.000***

−0.000***

−0.000***

−0.000***

−0.000***

 

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

(0.000)

Married

0.098***

0.025

0.098***

0.035

0.053

0.002

0.107***

−0.007

 

(0.027)

(0.062)

(0.027)

(0.062)

(0.045)

(0.072)

(0.035)

(0.098)

Indigenous

−0.063

−0.073*

−0.063

−0.072*

−0.107**

−0.115**

−0.043

−0.060

 

(0.042)

(0.044)

(0.042)

(0.043)

(0.054)

(0.058)

(0.075)

(0.071)

Female

−0.200***

−0.408**

−0.201***

−0.381**

−0.285***

−0.497*

−0.160***

−0.401**

 

(0.038)

(0.163)

(0.038)

(0.164)

(0.065)

(0.256)

(0.048)

(0.199)

HH head

0.023

0.086

0.023

0.077

0.065

0.124

0.006

0.089

 

(0.032)

(0.058)

(0.032)

(0.058)

(0.049)

(0.085)

(0.042)

(0.079)

HH size

−0.001

0.002

−0.001

0.002

0.005

0.007

−0.004

0.001

 

(0.003)

(0.003)

(0.003)

(0.003)

(0.004)

(0.005)

(0.004)

(0.005)

HDI health

0.123

−0.111

0.133

−0.069

−0.308

−0.516

0.350

−0.059

 

(0.461)

(0.530)

(0.461)

(0.527)

(0.643)

(0.793)

(0.844)

(0.853)

HDI education

−0.096

−0.148

−0.092

−0.138

−0.723

−0.735

1.271

0.742

 

(0.480)

(0.494)

(0.479)

(0.491)

(0.557)

(0.575)

(1.536)

(1.420)

HDI income

1.453***

1.725***

1.462***

1.698***

2.278***

2.579***

0.162

0.634

 

(0.356)

(0.425)

(0.355)

(0.424)

(0.499)

(0.640)

(0.705)

(0.804)

Constant

2.102***

1.922***

2.187***

2.027***

2.695***

2.517***

1.702**

1.782***

 

(0.333)

(0.362)

(0.338)

(0.366)

(0.448)

(0.516)

(0.733)

(0.683)

Mills Lambda λ

--

0.260

--

0.224

--

0.208

--

0.371

  

(0.199)

 

(0.200)

 

(0.244)

 

(0.297)

State dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Industry dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Occup. dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

N

2671

9446

2671

9446

1077

3824

1594

5622

R2

0.338

 

0.340

 

0.351

 

0.312

 
  1. Robust standard errors in parentheses. *, ** and *** denote significance level of 10%, 5% and 1%, respectively. OLS ordinary least squares, Heck: Heckman selection 2nd step. λ is the nonselection hazard variable generated from the probit model. 15 state dummies, 23 industry dummies and 18 occupation dummies included