Table 3. 
Determinants of Employment and Wages for Men in the Rural Sector
Employment ProbabilityLog Wages
VariableCoefficientStandard ErrorCoefficientStandard Error
Minimum wage 0.634*** (0.078) 1.078*** (0.213) 
Education (reference group = illiterate)     
Less than primary school —0.061*** (0.009) 0.110*** (0.020) 
Primary school −0.063*** (0.008) 0.179*** (0.036) 
Middle school −0.059*** (0.013) 0.334*** (0.043) 
Secondary school −0.043** (0.017) 0.736*** (0.067) 
Graduate school 0.073** (0.031) 1.237*** (0.086) 
Years of potential experience 0.010*** (0.001) 0.036*** (0.002) 
Potential experience squared/100 −0.017*** (0.001) −0.047*** (0.004) 
Currently married 0.053*** (0.008) 0.005 (0.021) 
Scheduled tribe or caste 0.064*** (0.009) −0.040** (0.016) 
Hindu 0.000 (0.008) −0.047 (0.027) 
Household headed by a man −0.041** (0.014) −0.007 (0.045) 
Number of preschool children −0.005** (0.002) −0.004 (0.008) 
Net state domestic product 0.002*** (0.000) 0.005*** (0.000) 
State unemployment rate 0.009*** (0.001) 0.025*** (0.003) 
State regulations: Adjustments −0.019*** (0.006) −0.147*** (0.028) 
State regulations: Disputes −0.024*** (0.004) −0.025*** (0.005) 
Enforcement: Inspections 0.030*** (0.003) 0.083*** (0.011) 
Enforcement: Irregularities −0.011*** (0.001) −0.013*** (0.003) 
Enforcement: Cases w/ fines −0.085*** (0.011) 0.333*** (0.014) 
Enforcement: Value of fines 0.008*** (0.001) 0.017*** (0.002) 
No. of observations 1,216,259  218,506  
Employment ProbabilityLog Wages
VariableCoefficientStandard ErrorCoefficientStandard Error
Minimum wage 0.634*** (0.078) 1.078*** (0.213) 
Education (reference group = illiterate)     
Less than primary school —0.061*** (0.009) 0.110*** (0.020) 
Primary school −0.063*** (0.008) 0.179*** (0.036) 
Middle school −0.059*** (0.013) 0.334*** (0.043) 
Secondary school −0.043** (0.017) 0.736*** (0.067) 
Graduate school 0.073** (0.031) 1.237*** (0.086) 
Years of potential experience 0.010*** (0.001) 0.036*** (0.002) 
Potential experience squared/100 −0.017*** (0.001) −0.047*** (0.004) 
Currently married 0.053*** (0.008) 0.005 (0.021) 
Scheduled tribe or caste 0.064*** (0.009) −0.040** (0.016) 
Hindu 0.000 (0.008) −0.047 (0.027) 
Household headed by a man −0.041** (0.014) −0.007 (0.045) 
Number of preschool children −0.005** (0.002) −0.004 (0.008) 
Net state domestic product 0.002*** (0.000) 0.005*** (0.000) 
State unemployment rate 0.009*** (0.001) 0.025*** (0.003) 
State regulations: Adjustments −0.019*** (0.006) −0.147*** (0.028) 
State regulations: Disputes −0.024*** (0.004) −0.025*** (0.005) 
Enforcement: Inspections 0.030*** (0.003) 0.083*** (0.011) 
Enforcement: Irregularities −0.011*** (0.001) −0.013*** (0.003) 
Enforcement: Cases w/ fines −0.085*** (0.011) 0.333*** (0.014) 
Enforcement: Value of fines 0.008*** (0.001) 0.017*** (0.002) 
No. of observations 1,216,259  218,506  

Notes: Weighted to national level with National Sample Survey Organization sample weights. Standard errors, in parentheses, are clustered by state. *** = p < 0.01, ** = p < 0.05, * = p < 0.10. Both regressions include state dummies, time dummies, and state–time interaction terms.

Source: Authors’ calculations.

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