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Table 5. 
Determinants of Employment and Wages for Men in the Urban Sector
Employment ProbabilityLog Wages
VariableCoefficientStandard ErrorCoefficientStandard Error
Minimum wage 0.132 (0.221) 0.247 (0.191) 
Education (reference group = illiterate)     
Less than primary school −0.024** (0.010) 0.170*** (0.033) 
Primary school 0.045*** (0.014) 0.248*** (0.045) 
Middle school 0.078*** (0.019) 0.375*** (0.045) 
Secondary school 0.110*** (0.022) 0.748*** (0.053) 
Graduate school 0.197*** (0.019) 1.309*** (0.060) 
Years of potential experience 0.018*** (0.001) 0.051*** (0.004) 
Potential experience squared/100 −0.029*** (0.002) −0.068*** (0.006) 
Currently married 0.123*** (0.017) 0.179*** (0.027) 
Scheduled tribe or caste 0.038*** (0.008) −0.041** (0.015) 
Hindu 0.032*** (0.007) −0.041** (0.019) 
Household headed by a man −0.088*** (0.012) 0.014 (0.033) 
Number of preschool children −0.016*** (0.004) −0.009 (0.011) 
Net state domestic product 0.000 (0.000) 0.000* (0.000) 
State unemployment rate 0.001 (0.001) −0.005*** (0.000) 
State regulations: Adjustments −0.015 (0.036) −0.053 (0.031) 
State regulations: Disputes −0.009 (0.014) 0.046*** (0.010) 
Enforcement: Inspections 0.000 (0.004) 0.007*** (0.002) 
Enforcement: Irregularities −0.002** (0.001) 0.009*** (0.000) 
Enforcement: Cases w/ fines −0.052** (0.022) 0.134*** (0.030) 
Enforcement: Value of fines 0.002 (0.003) 0.000 (0.002) 
No. of observations 690,342  239,534  
Employment ProbabilityLog Wages
VariableCoefficientStandard ErrorCoefficientStandard Error
Minimum wage 0.132 (0.221) 0.247 (0.191) 
Education (reference group = illiterate)     
Less than primary school −0.024** (0.010) 0.170*** (0.033) 
Primary school 0.045*** (0.014) 0.248*** (0.045) 
Middle school 0.078*** (0.019) 0.375*** (0.045) 
Secondary school 0.110*** (0.022) 0.748*** (0.053) 
Graduate school 0.197*** (0.019) 1.309*** (0.060) 
Years of potential experience 0.018*** (0.001) 0.051*** (0.004) 
Potential experience squared/100 −0.029*** (0.002) −0.068*** (0.006) 
Currently married 0.123*** (0.017) 0.179*** (0.027) 
Scheduled tribe or caste 0.038*** (0.008) −0.041** (0.015) 
Hindu 0.032*** (0.007) −0.041** (0.019) 
Household headed by a man −0.088*** (0.012) 0.014 (0.033) 
Number of preschool children −0.016*** (0.004) −0.009 (0.011) 
Net state domestic product 0.000 (0.000) 0.000* (0.000) 
State unemployment rate 0.001 (0.001) −0.005*** (0.000) 
State regulations: Adjustments −0.015 (0.036) −0.053 (0.031) 
State regulations: Disputes −0.009 (0.014) 0.046*** (0.010) 
Enforcement: Inspections 0.000 (0.004) 0.007*** (0.002) 
Enforcement: Irregularities −0.002** (0.001) 0.009*** (0.000) 
Enforcement: Cases w/ fines −0.052** (0.022) 0.134*** (0.030) 
Enforcement: Value of fines 0.002 (0.003) 0.000 (0.002) 
No. of observations 690,342  239,534  

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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