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Table 9 Earnings equations for self- and wage-employment

From: Discrimination in a search and matching model with self-employment

 

Self-employed: OLS

Self-employed: DMF

Wage-employed (All): OLS

Wage-employed (All): DMF

 

No controls

With controls

No controls

With controls

No controls

With controls

No controls

With controls

Male? (1 = Y, 0 = N)

0.6363***

0.5341***

0.3344**

0.4435

0.3748***

0.2823***

−0.0192

0.0308

 

(0.0593)

(0.0713)

(0.1324)

(0.2830)

(0.0467)

(0.0427)

(0.0795)

(0.1545)

Education (years)

 

0.0436***

 

0.0449*

 

0.0742***

 

0.0560***

  

(0.0100)

 

(0.0242)

 

(0.0074)

 

(0.0147)

Age (years)

 

0.0277

 

−0.0292

 

0.0653***

 

0.0289

  

(0.0192)

 

(0.0883)

 

(0.0133)

 

(0.0593)

Age (years) squared

 

−0.0003

 

0.0004

 

−0.0007***

 

−0.0002

  

(0.0002)

 

(0.0011)

 

(0.0002)

 

(0.0007)

Married? (1 = Y, 0 = N)

 

0.1525*

 

0.1589

 

0.1396**

 

0.2768***

  

(0.0784)

 

(0.1287)

 

(0.0601)

 

(0.0699)

Household size

 

−0.0054

 

−0.0056

 

−0.0058

 

−0.0072*

  

(0.0107)

 

(0.0098)

 

(0.0040)

 

(0.0039)

Constant

3.5053***

2.2458***

3.1174***

3.3382*

3.4766***

1.1850***

4.8154***

2.8219*

 

(0.0454)

(0.3431)

(0.2098)

(1.9232)

(0.0305)

(0.2472)

(0.2178)

(1.4996)

City dummies

×

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×

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×

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×

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Wave dummies

×

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×

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×

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×

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DMF correction

×

×

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×

×

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Explained gender earnings gap

 

0.1023

 

-0.1091

 

0.0925

 

-0.0500

p-value on explained gap

 

0.0001

 

0.6953

 

0.0000

 

0.7204

p-value on male coefficient versus uncorrected model

  

0.0243

0.7716

  

0.0000

0.0872

N

1761

1760

1760

1760

1717

1717

1717

1717

R 2

0.0614

0.1128

0.0777

0.1146

0.0539

0.2339

0.1632

0.2377

  1. Standard errors in parentheses
  2. Dependent variable: Log of Weekly Earnings
  3. ‘DMF’ refers to Dubin and McFadden model
  4. Sample of individuals of working age (15–65) from the 2010, 2012, and 2013 waves of the GHUPS
  5. Outliers trimmed at the 5th and 95th percentiles for each sector
  6. Standard errors cluster bootstrapped by enumeration area
  7. * p<0.10, ** p<0.05, *** p<0.01
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