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Table 6. 
Multinational-Local Wage Differentials, Other Slope Coefficients, and Equation Indicators from Estimates of Equation (1) for all 17 Sample Industries Combined
Pooled OLSRandom Effects
LaggedContemporaneousLaggedContemporaneous
Slope coefficient
variable, indicator2001–20042001–20042000–20042001–20042001–20042000–2004
 0.0242*** 0.0329*** 0.0338*** 0.0183*** 0.0360*** 0.0367*** 
 0.1071*** 0.1178*** 0.1187*** 0.1032*** 0.1229*** 0.1264*** 
 0.0074*** 0.0070*** 0.0082*** 0.0037*** 0.0061*** 0.0074*** 
       
 0.0064*** 0.0072*** 0.0060*** 0.0042*** 0.0064*** 0.0049*** 
       
 0.0011*** 0.0011*** 0.0005*** 0.0006*** 0.0007*** 0.0001 
       
       
 –0.0039*** –0.0035*** –0.0036*** –0.0032*** –0.0026*** –0.0025*** 
       
 0.0890*** 0.0809*** 0.0913*** 0.0749*** 0.0525*** 0.0658*** 
       
       
R2 0.5591 0.5735 0.5638 0.5454 0.5683 0.5579 
Observations 21,671 26,855 34,491 21,671 26,855 34,491 
Breusch-Pagan Test – – – 8,254*** 10,202*** 14,135*** 
Pooled OLSRandom Effects
LaggedContemporaneousLaggedContemporaneous
Slope coefficient
variable, indicator2001–20042001–20042000–20042001–20042001–20042000–2004
 0.0242*** 0.0329*** 0.0338*** 0.0183*** 0.0360*** 0.0367*** 
 0.1071*** 0.1178*** 0.1187*** 0.1032*** 0.1229*** 0.1264*** 
 0.0074*** 0.0070*** 0.0082*** 0.0037*** 0.0061*** 0.0074*** 
       
 0.0064*** 0.0072*** 0.0060*** 0.0042*** 0.0064*** 0.0049*** 
       
 0.0011*** 0.0011*** 0.0005*** 0.0006*** 0.0007*** 0.0001 
       
       
 –0.0039*** –0.0035*** –0.0036*** –0.0032*** –0.0026*** –0.0025*** 
       
 0.0890*** 0.0809*** 0.0913*** 0.0749*** 0.0525*** 0.0658*** 
       
       
R2 0.5591 0.5735 0.5638 0.5454 0.5683 0.5579 
Observations 21,671 26,855 34,491 21,671 26,855 34,491 
Breusch-Pagan Test – – – 8,254*** 10,202*** 14,135*** 

*** = significant at the 1% level, ** = significant at the 5% level, * = significant at the 10% level.

LKE = capital intensity, LO = output scale, SH = highly paid share of paid workers, S3 = highly educated share of all workers, S2 = moderately educated share of all workers, SF = female share of paid workers, DF = MNE–local differential (ratio less 1).

Note: Robust standard errors (clustered by plant for random effects) are used to account for potential heteroskedasticity. Results of the Breusch-Pagan Test (null of no random effects) is always rejected at the 1% level. These results come from estimates that also include year, industry, and region dummies. Full results including constants and coefficients on year, industry, and region dummies are available from the author.

Source: Author's estimates from microdata underlying Department of Statistics (2002, various years).

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