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Table 7. 
Industry-level Estimates of Multinational-Local Wage Differentials after Controlling for Capital Intensity, Size, Labor Occupation, Labor Skill, and Labor Gender from Equation (1)
Pooled OLSRandom Effects
LaggedContemporaneousLaggedContemporaneous
Industry2001–20042001–20042000–20042001–20042001–20042000–2004
Food and beverages 0.1069*** 0.1154*** 0.1176*** 0.1104*** 0.1241*** 0.1075*** 
Textiles 0.1084*** 0.1155*** 0.1196*** 0.0269 0.0804* 0.0627 
Apparel 0.0764*** 0.0433 0.0499** 0.0922** 0.0551 0.1138*** 
Wood products 0.0040 –0.0084 0.0047 0.0203 –0.0170 0.0047 
Paper products 0.0805** 0.0661** 0.0710*** 0.0715 0.0496 0.0206 
Chemicals 0.0950*** 0.0858*** 0.0958*** 0.0679** 0.0858*** 0.0906*** 
Rubber products 0.2259*** 0.2076*** 0.2195*** 0.1470*** 0.1121*** 0.1215*** 
Plastics 0.0798*** 0.0749*** 0.0906*** 0.0579** 0.0266 0.0409* 
Non-metallic mineral 0.1077*** 0.0728** 0.0845*** 0.0865** 0.0142 0.0317 
  products       
Basic metals 0.1023*** 0.1153*** 0.1124*** 0.0436 0.0477 0.0462 
Fabricated metals 0.0408* 0.0316 0.0692*** 0.0597* 0.0336 0.0743** 
General machinery 0.0911** 0.0762** 0.0755*** 0.1141** 0.1282*** 0.1365*** 
Office, computing, and –0.0140 –0.0503 –0.0273 0.0047 –0.0234 –0.0379 
  precision machinery       
Electrical machinery 0.1020*** 0.0903*** 0.1126*** 0.0604** 0.0789** 0.0862*** 
Radio, TV, and 0.0754*** 0.0633*** 0.0460*** 0.0719*** 0.0435* 0.0284 
  communication machinery       
Motor vehicles 0.1091** 0.1361*** 0.1617*** 0.1267** 0.1270* 0.1605** 
Furniture 0.0993*** 0.1057*** 0.1090*** 0.1103*** 0.0690** 0.0702** 
Pooled OLSRandom Effects
LaggedContemporaneousLaggedContemporaneous
Industry2001–20042001–20042000–20042001–20042001–20042000–2004
Food and beverages 0.1069*** 0.1154*** 0.1176*** 0.1104*** 0.1241*** 0.1075*** 
Textiles 0.1084*** 0.1155*** 0.1196*** 0.0269 0.0804* 0.0627 
Apparel 0.0764*** 0.0433 0.0499** 0.0922** 0.0551 0.1138*** 
Wood products 0.0040 –0.0084 0.0047 0.0203 –0.0170 0.0047 
Paper products 0.0805** 0.0661** 0.0710*** 0.0715 0.0496 0.0206 
Chemicals 0.0950*** 0.0858*** 0.0958*** 0.0679** 0.0858*** 0.0906*** 
Rubber products 0.2259*** 0.2076*** 0.2195*** 0.1470*** 0.1121*** 0.1215*** 
Plastics 0.0798*** 0.0749*** 0.0906*** 0.0579** 0.0266 0.0409* 
Non-metallic mineral 0.1077*** 0.0728** 0.0845*** 0.0865** 0.0142 0.0317 
  products       
Basic metals 0.1023*** 0.1153*** 0.1124*** 0.0436 0.0477 0.0462 
Fabricated metals 0.0408* 0.0316 0.0692*** 0.0597* 0.0336 0.0743** 
General machinery 0.0911** 0.0762** 0.0755*** 0.1141** 0.1282*** 0.1365*** 
Office, computing, and –0.0140 –0.0503 –0.0273 0.0047 –0.0234 –0.0379 
  precision machinery       
Electrical machinery 0.1020*** 0.0903*** 0.1126*** 0.0604** 0.0789** 0.0862*** 
Radio, TV, and 0.0754*** 0.0633*** 0.0460*** 0.0719*** 0.0435* 0.0284 
  communication machinery       
Motor vehicles 0.1091** 0.1361*** 0.1617*** 0.1267** 0.1270* 0.1605** 
Furniture 0.0993*** 0.1057*** 0.1090*** 0.1103*** 0.0690** 0.0702** 

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

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. Other slope coefficients and equation statistics are presented in Appendix Table 6. 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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