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Page 1: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

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Q � � 7 � � � "(6 R��1 � ��6 R� � � � " � � � �(6 �2� � � ��6 L � � � � -�� ��6 32� � 6 S�� 1 # � � 7�:TG� �� � � � "�@ U U U�V 6 3(� � $@ U U U�6 L � ��� � -�� �

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üç�á â ç à!á æ ù ç�á â çì�î í ç øNá î#æ!í æ á æ#ä ç á�ñ î ê ç è ã à ò�ô õ!ö(ð è ã ñ æ à!ñ î ï à á è ã ç ä û � â çì�æ ã àÑí�ã ÿ�ñ ï ø á þÑæ ý�î ï áá ç ä á ã à ò�ä ï å�ç è ê ã ä ã î à�ì�î í ç ø ä ã ä á â æ áNæ à þ�î ý ä ç è ê ç í�è ç ø æ á ã î à ä â ã å�ý�ç á é.ç ç à�é æ ò ç äNæ à í�ó è ìuä ã � ç ñ æ à�å�î á ç à á ã æ ø ø þý�ç�æ á á è ã ý�ï á ç í#á î�ä þ ä á ç ì�æ á ã ñ�í�ã ú�ç è ç à ñ ç ä�ã àé î è ù ç è ä ��á è æ ã á ä�æ ñ è î ä ä�ó è ì�ä û �Cîì�ã à ã ì�ã � ç�á â ã ä�ý�ã æ ä � é ç�á æ ù çæ í ê æ à á æ ò ç î ð ì�æ á ñ â ç í�é î è ù ç è ÷ ç ì�å�ø î þ ç èCí æ á æNá î ñ î à ä á è ï ñ áCæ(ó è ì�÷ ä å�ç ñ ã ó ñ é æ ò çNì�ç æ ä ï è çCá â æ á ã äCå�ï è ò ç í�î ð æ ø øî ý ä ç è ê æ ý�ø ç(í�ã ú�ç è ç à ñ ç äNæ ñ è î ä äNé î è ù ç è ä û\ö�ø á â î ï ò â�á â ã ä æ å å�è î æ ñ â�í î ç ä à î á ç à á ã è ç ø þ�ç ø ã ì�ã à æ á ç(á â ç(å�î ä ä ã ý�ã ø ã á þî ðOæ�ä ç ø ç ñ á ã î à�ý�ã æ ä���á â ç è ç�ì�ã ò â áNè ç ì�æ ã à�ä þ ä á ç ì�æ á ã ñ íOã ú�ç è ç à ñ ç ä ã à�ï à î ý ä ç è ê æ ýOø ç(é î è ù ç è á è æ ã á äNæ ñ è î ä ä ó�è ì�ä��é ç�ýOç ø ã ç ê ç�î ï è æ å å è î æ ñ â�ä ã à ò ï ø æ è ø þ�è ç í�ï ñ ç äNá â ç�ø ã ù ç ø þ�ì�æ ò à ã á ï í ç�î ð\á â ç�ý�ã æ ä û � â ã ä(ã ä(å æ è á ã ñ ï ø æ è ø þ�á è ï çò ã ê ç à�á â æ áNá â ç(ä ç ñ á î è äNî à�é â ã ñ â�é ç�â æ ê ç�í æ á æ�ý�ç ø î à ò(á î�ø ã ò â á(ì�æ à ï ð æ ñ á ï è ã à ò�ä ï ñ â�æ ä(ò æ è ì�ç à á æ à í�á ç ë á ã ø çî è�ð î î í#å è î ñ ç ä ä ã à ò û���î ä á�ä ï è ê ç þ ç í!ó è ì�ä�ï ä ç�í æ á ç í#ç � ï ã å�ì�ç à á�ð î è�éNâ�ã ñ â#å è î í�ï ñ á ã î àé î è ù#ã ä�è ç ø æ á ã ê ç ø þä á è æ ã ò â á ð î è é.æ è í\û�ß à�ä ï ñ â�æ à�ç à ê ã è î à ì�ç à á � ã á�ã ä(í î ï ý á ð ï øOá â æ á�ï à î ý ä ç è ê æ ý�ø ç�é.î è ù ç è á è æ ã á ä(é î ï ø íæ ñ ñ î ï à áð î è(ì�ï ñ â�î ð�á â ç(å è î í�ï ñ á ã ê ã á þ�í�ã ú�ç è ç à ñ ç ä æ ñ è î ä äNó è ì�ä û

üç�ýOç ò ã à#ý þ�á ç ä á ã à ò�é â ç á â ç è�á â ç�í æ á æã ä�ý è î æ íOø þñ î à ä ã ä á ç à á�é ã á â#ì�î í ç ø.å è ç í�ã ñ á ã î à ä û�üç�ó�à í#á â æ áé æ ò ç ä�ã à ñ è ç æ ä ç�é ã á â�ó è ìGä ã � ç�ð î è(ý�î á â�å è î í�ï ñ á ã î à�é î è ù ç è ä(æ à íä ï å�ç è ê ã ä î è ä(æ à í�á â æ á � ã à�á â ç�ì�æ � î è ã á þ�î ðá â ç(ñ æ ä ç ä � á â ç þ�ã à ñ è ç æ ä ç(ð æ ä á ç è ð î è ä ï å�ç è ê ã ä î è ä û\üç(æ ø ä î�ó�à í�á â æ á á â ç(ä ï å�ç è ê ã ä ã î à�è æ á ã î�í è î å äNí è æ ì�æ á ã ñ æ ø ø þé ã á â�ó è ì ä ã � ç û ü�â ç à�é ç�è ç ò è ç ä ä ê æ ø ï ç�æ í í ç í�î à�ñ æ å�ã á æ øOæ à í�ø æ ýOî è å�ø ï äNé æ ò ç ä æ à í�á â ç�ä ï åOç è ê ã ä ã î à�è æ á ã î �ý�î á â�æ è ç(ä â î é à�á î�ý�ç(ä á è î à ò ø þ�ñ î è è ç ø æ á ç í�é ã á â�å è î í�ï ñ á ã ê ã á þ û ã ê ç à�á â ã ä�ç à ñ î ï è æ ò ã à ò�å è ç ø ã ì�ã à æ è þè ç ä ï�ø á ä � é ç�ê ç à á ï è ç�á î�ç ä á ã ì�æ á ç�á â ç�ä á è ï ñ á ï è æ ø ì�î í ç ø ã á ä ç ø ð û �Cîí î�ä î � é ç�è ç ø þ�î à�á â ç�ò ç à ç è æ ø.ì�ç á â î íî ð ì�î ì�ç à á ä á î�ç ä á ã ì�æ á ç�æ�ä þ ä á ç ì î ð.ó ê ç�à î à ÷ ø ã à ç æ è(ç � ï æ á ã î à ä�ý þ

ã à ä á è ï ì�ç à á æ øOê æ è ã æ ý�ø ç ä û� ç ä ï ø á ä ä â î éUá â æ á(æ�í î ï ý�ø ã à ò�ã à�ó�è ì ñ æ å�ã á æ øOè æ ã ä ç ä é.æ ò ç äNá î�å�è î í�ï ñ á ã î à�é î è ù ç è äý þ��� ué â ã ø ç æ á á â ç ä æ ì�çNá ã ì�ç í ç ñ è ç æ ä ã à ò á â ç(ä ï å�ç è ê ã ä ã î à�è æ á ã î�ý þ�� � uæ à í�è æ ã ä ã à ò(ä ï å�ç è ê ã ä î è ä � é æ ò ç ä ý þ� � �ûCö äNæ�è ç ä ï ø á î ð�á â ã äNñ î ì(ýOã à æ á ã î à � ø æ ý�î èNç ú�î è á è ç ì�æ ã à äNñ î à ä á æ à á æ ñ è î ä äNó è ì ä ã � ç äNý�ï áNá î á æ øOø æ ý�î èNñ î ä áå�ç è ï à�ã á(î ðCç ú�î è á�� ã à ñ ø ï í�ã à ò�ä ï å�ç è ê ã ä î è ä � é æ ò ç ä � ã à ñ è ç æ ä ç ä ý þ#ô � � �û � â ã ä(ã äNá â ç(åOç à æ ø á þ�ø æ è ò ç�ó è ì�ä(â æ ê çá î�ã à ñ ï è ã à�î è í ç è á î�ì�î á ã ê æ á ç(é î è ù ç è ä û

üç�æ ø ä î#ñ î à í�ï ñ á�æ!à ï ì(ý�ç è�î ðNä å�ç ñ ã ó ñ æ á ã î à#ñ â ç ñ ù ä û� ç ä ï ø á ä�ä ï ò ò ç ä á�á â æ á�ó è ä á�î è í ç è�ñ î à í�ã á ã î à ä�ð î è

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é æ ò ç ä�æ è ç�ý þæ à í#ø æ è ò ç�ä æ á ã ä ó ç í#ý�ï á(á â æ á�ó è ä á�î è í ç è(ñ î à í�ã á ã î à ä�ð î è�ç ì�å�ø î þ ì�ç à á�æ è ç�à î á û�üç�ä å�ç ñ ï ø æ á çá â æ á á â�ã äNî ï á ñ î ì�ç�ã ä í�ï ç á î�î ï èNð æ ã ø ï è ç á î�æ ñ ñ î ï à á(ð î èNæ�íOã è ç ñ á ñ î à á è ã ý�ï á ã î à�î ðOä ï åOç è ê ã ä î è ä á î�ó è ì î ï á å�ï á û�.ä á ã ì�æ á ã à ò�æ�ò ç à ç è æ ø ã � ç í�ì�î í ç ø á â æ á æ ø ø î éUð î è æ�íOï æ ø�ä ï å�ç è ê ã ä î èNè î ø ç ��æ ä ä ï å�ç è ê ã ä î è ä æ à í�æ äNé î è ù ç è ä���ã äø ç ð á(ð î è ð ï á ï è ç�è ç ä ç æ è ñ âOû

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�$06� � � � � ��� � � ��+� �"!�# $ % & ' ' ()' *�+�# & ' ,.-/ ' $' 021 / 3 4)5 ' 6 7 0�8:9 ;)<>= ?A@�B C D�E:F�;�GH I = J K = L M = C2N J O�P2;

Q N C O)R = O H O�; S T UVL H = W X = C>Y Y�;Z [ Z \ ] ^ _ `;

Ga = b2B c L d�T PN C B J�efG�J O C = ?hg>; <>= ?b2N J�; Z ` ` `;>i jI =�k�N lB C>m:N C D = MN J O Q B C YB C N M =�n M C d a M d C = ; o:R b.X b2= B p

c C N YI S ;

G�q N b:T r = N J p s�N d L ehr = N J p @W = H�k�= H d = d C ; _ \ \ ^ ;�i Uut2a X = J a v�w)N c =VN J O.n d Y= C W X H X B J�E�jI = B C v�N J O2GY YL X a N M X B J

M B�M I =�x W B C X N J:m:N J d K N a M d C X J c.n = a M B C ; o:y ' 7 , $ # 6�' *zu* , 1 / # $�-/ ' $�' 021 / 3V[ R { S E | | } ] [ Z ;

~uN C C B T �>B l= C M�r ;ef�N W X = Cn N L N.X�m:N C M X J�;�_ \ \ Z ;�i Q B J W = C c = J a = ; o�y ���>' 6 1 � ��-/ ' $ ��_ ` `E Z Z { ] Z } _ ;

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Q N L X K B C J X N2suC = H H ;

~uN d = C Ts�;j�;�_ \ ^ _ ;���1 3 3 8 $�>' $���8 � 8 6 ' � 0�8 $� ����� 7% 1 8 32# $ %���8 & # � 8 3�1 $��28 � 8 6 ' � 0�8 $ �u-/ ' $�' 021 / 3 ;>k�B J O B J�E

w)= X O = J K = L O:N J O�<X a I B L H B J�;

~uN v N C O�T��2X b�l= C L v�e���= J J = M I)�2;�j�C B H D = ;u_ \ \ \ ;"i U�� N b2X J X Jc.M I =.UVb2YL B v = C p n X q =.w)N c =.sVC = b.X d b�X J�M I =

m:N J d K N a M d C X J c T>�= M N X Lj�C N O = T>N J O�n = C W X a =)x J Od H M C X = H��H X J c�UVb�YL B v = C p UVb2YL B v = =)m:N M a I = OhP�N M N ; o

z>0�8 , 1 / # $�-/ ' $�' 021 /��>8 � 1 8 ��� \ R Z S E \ \ ]_ ` { ;

~uN v N C M T r = N J p g C N J a B X H ;�_ \ � \ ;�+2� -� # �V8 $:z�* , 1 � 7�8 �V+�#.�>' 6 1 � 1 � 78�% 7h58 $� , 8 ;�s�N C X H E�g N v N C O�;

~VX c H M = J�T GC J = T s�N d L Q B L L X = C T n M = K N J.P�= C a B J�T m:N C a = Lg N K a I N b2Y H T ~u= C J N C O)�>N d M I X = C T r N J p w�X L L = b���d J J X J c T

G�J O = C Hx H N D H H B J�TGl= J N�F>Od C B T��>= b�a B�F>B H M = J O B C Y�T Q N M I v:s�N M X L L B T�m:N J H�n B O = C lB b�T�g C N J a X H�j�= N L T

G�L l= C M��= d K N a D�e�n X b�B J�GY YL = M B J�;�Z ` ` `# ;hi �N M = H2B KV�= M d C J)B J�sVI v H X a N LuN J O���d b�N J Q N YX M N LVX J

G�K C X a N � Hm:N J d K N a M d C X J c2n = a M B C ; o�-/ ' $' 021 /���8 � 8 6 ' �0�8 $ �V# $ %���7 6 � 7 , # 6���� # $ � 8u| � R | S E � `_ ] Z ^ ;

~VX c H M = J�T GC J = T s�N d L Q B L L X = C T n M = K N J.P�= C a B J�T m:N C a = LgN K a I N b2Y H T ~V= C J N C O)�N d M IX = C T r N J.w�X L L = b���d J J X J c T

G�J O = C H�x H N D H H B J�T�Gl= J N)F>Od C B T��>= b�a B)F>B H M = J O B C Y�T Q N M I v�s�N M X L L BT�m:N J H2n B O = C lB b:T�gC N J a X H�j�= N L

efG�L l= C M��= d K N a D;Z ` ` `& ;i Q B J M C N a MguL = �X lX L X M v�N J O�P�X H Yd M =��= H B L d M X B J�X J�G�K C X a N J:m:N J d K N a M d C X J c ; o

y ' 7 , $# 6�' *�28 � 8 6 ' � 0�8 $ �u�� 7 % 1 8 3>{ [ R | S E _ ] { ^ ;

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y ' 7 , $# 6�' *V+�# & ' ,�-/ ' $' 021 / 3�_ _ R _ S E _ ] | ^ ;

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� 7 %�% 7:��# � # , # ��� >8 � 1 ' $ 3�% 8��� $ � � � 3 8 ;�GO O�X H>Gl N l NEur G�n s�G2T x J M = C J N M X B J N Lk�N lB d C�F>C c N J X q N M X B J�;

UVq = N L N p �N C C X H B J�T�guX O= L ;V_ \ \ _ ;�i G�J)UVb2YX C X a N L�gC N b2= ?VB C D)K B C�M I =.Uut.a X = J a v p w)N c =�m:B O = L E��H =.B KVm�X a C B

PN M N�K B C<X c = C X N; o�y ' 7 , $ # 6�' *>-�/ ' $' 021 /��� 7 % 1 8 3�_ \ R { S E _ � ] { } ;

gN K a I N b2Y H Tm:N C a = L�e ~uN C M�m�X J M = J�;VZ ` ` _ ;�i suC B Y�= C M v"��X c I M H:X J"N�guL = N�m:N C D = M:Uua B J B b�v ; o"-/ ' $�' 021 /

��8 � 8 6 ' � 0�8 $�u# $%���7 6 � 7 , # 6u��� # $ � 8V| \ R Z S E Z Z \ ] Z [ � ;

�C X L X a I = H T>��;Ve r ; G2;u�N d H b2N J�;_ \ � [ ;Ai UuC C B C H:X J ��N C X N lL = H�X J"s�N J = L>P�N M N; ohy ' 7 , $ # 6�' *�-/ ' $' 0�8 � , 1 / 3

{ _ E \ { ]�_ _ � ;

�N J H = J�T�k�N C H�s�= M = C ;u_ \ � Z ;�i k�N C c =�n N b2YL =.suC B Y�= C M X = H�B K>�>= J = C N L X q = O�m:= M I B O�B KVm:B b�= J M H�UVH M X b�N M B C H ; o

-/ ' $' 0�8 � , 1 / #�} `E _ ` Z \ ]_ ` } | ;

��B a I = C L N D B M NT><�; �2;>_ \ \ ` ;Ai F�J�j�= H M H.B K�>= Y C = H = J M N M X W = Q B J H d b2= C�GH H = M�suC X a X J c�m:B O = L H ; o"y ' 7 , $ # 6' *

�)' $8 � # , ��-/ ' $�' 021 / 3VZ [ E Z � } ] { ` |;

m:N J D X ?�T<�;���; T P2; �B b2= C�efP.;<�; w)= X L ;�_ \ \ Z ;�i G Q B J M C X ld M X B J.M B2M I =�UVb2YX C X a H>B K�Uua B J B b.X a.�>C B ?VM I�; o

� 7# , � 8 , 6 �.y ��-/ ' $ � Q �x x E | ` ^ ] | { ^ ;

m:N q d b2O N C T P�X Y N D:efGVM N�m:N q N I = C X ;Z ` ` Z ;���# � 8 3�# $%2-V0��6 ' � 0�8 $ �u1 $�zu* , 1 / # ;�G�L O= C H I B M T ��.E GH I c N M = ;

FX T w)N L M = C@2;e j�B O O�ku;x O H B J�;�_ \ \ \ ;VguX C b�n X q =2N J O�w)N c = H ; x J�!�# $% & ' ' (:' *>+�# & ' ,�-/ ' $�' 021 / 3 4�5' 6 7 0�8

9 ;u<>= ?�@uB C D�EVF�; GH I = J K = L M = C>N J O�P.; Q N C O�R = O H O�; S T U>L H = W X = C>Y Y�; Z _ [ } ] Z Z _ |;

��X J c d = O = T n = l N H M X = J�; _ \ \ � ;�i G�J�UVt2a X = J a v�w)N c =Vm:B O = L K B C�n b2N L L gVX C b2H E�guX C bfn X q =uN J O�w)N c = H ; o�-/ ' $�' 021 /

+u8 � � 8 , 3>} \ E Z [ { ] � ;

n = C J = = L H T s�= M = C ;�_ \ \ \ ;�i ��J = b2YL B v b�= J MP�d C N M X B J:X J��C l N J�U�M I X B YX N; o:R b.X b�= B c C N YI S ;

Z |

Page 26: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

n B O = C lB b�T m:N J H ; Z ` `_ ;u�V' $ 3 � , # 1 $ � 3# $ % � � � ' , � 7$ 1 � 1 8 3>1 $��.8 $� # $ �)# $ 7 * # / � 7 , 1 $ � �>�>8 � ' , �u' $:� �8��.8 $ � # $

��# $ 7 * # / � 7 , 1 $ ��->$ � 8 , � , 1 3 8.� 7 , � 8 ����� � � ;�FV�K B C O�E Q = J M C =�K B C�M I =�n M d O v�B KuG�K C X a N J)Uua B J B b.X = H T�P= p

Y N C M b�= J MB K�Uua B J B b.X a H T�FV�K B C O:��J X W = C H X M v ; Q n GU"�>UVs�� Z ` `_ p ` { ;

n B O = C lB b�Tm:N J H�e gC N J a X H>j�= N L ;Z ` `_ ; , # % 8�# $ %�!>7 0.# $���# � 1 � # 6�# 3��28 � 8 , 021 $ # $� 3.' *�V, ' �u� � ;F>� K B C O�E

Q = J M C =2K B CVM I =2n M d O v�B K�G�K C X a N J�Uua B J B b2X = H TFV�K B C O:��J X W = C H X M v ; Q n GUhw"s�� Z ` ` _ p _ `;

n Y N C D H T��B c = C ;u_ \ � [ ;"i G�m:B O = LuB KVx J W B L d J M N C v)��J = b2YL B v b�= J M2N J O�w)N c =.��X c X OX M v�E2w)B C D = C2x J a = J M X W = H

N J O�M I =�jI C = N MB K�P�X H b.X H H N L ; o:y ' 7 , $ # 6�' *>+�# & ' ,�-/ ' $' 021 / 3V|R | S E } [ ` ] � _ ;

n M X c L X M q T r B H = YI2U; _ \ � ^ ;ui jI = Q N d H = HuN J O Q B J H = � d = J a = HuB K M I =>P�= Y= J O = J a =>B K ��d N L X M v�B J�suC X a = ; o.y ' 7 , $ # 6

' *>-�/ ' $' 021 />+u1 � 8 , # � 7 , 8u��� �2E _ ] | � ;

n M C B lL T�UuC X a�eA�>B l= C M�jI B C J M B J�;�Z ` `_ ;���'.+�# , � 82-V0��6 ' � 8 , 32�># ���)' , 821 $)�28 � 8 6 ' � 1 $ �)�V' 7 $� , 1 8 3 ����8

��# 3 82' * ��1 � 8zu* , 1 / # $��V' 7 $� , 1 8 3 ;�P�d lL X J�E�P= Y N C M b2= J MB K�Uua B J B b.X a H T ��J X W = C H X M v Q B L L = c = ;

j�= N L T�gC N J a X H ;�Z ` ` `;�i �= N L�w)N c = H�N J O)M I =.P�= b�N J O�K B C2n D X L L = O�N J O���J H D X L L = O�m:N L =�k�N lB d C2X J��I N J N� H

m:N J d K N a M d C X J c.n = a M B C E>_ \ \ _ p _ \ \ } ; o�y ' 7 , $ # 6�' *�28 � 8 6 ' � 0�8 $ ��-/ ' $�' 021 / 3V[ _ E | | ^ ] [ _ ;

j�C B H D = T ��= J J = M I��2;�_ \ \ \ ;�i UuW X O = J a =�B J.M I =�UVb2YL B v = CnX q = p w)N c =�suC = b.X d bAg C B bAw)B C D = C p UuH M N lL X H I b�= J M

m:N M a I = O:P�N M N; o:�>8 � 1 8 ��' *-/ ' $�' 021 / 3�# $ %.�� # � 1 3 � 1 / 3V� _ R _ S E _ } ] Z [ ;

jVv L = C Tr B I J:�2; T�X a I N C O)r ;m�d C J N J =2e�r B I J�~; w�X L L = M M ;Z ` ` `;2i UuH M X b2N M X J c�M I =�k�N lB C�m:N C D = M�n X c J N L X J c

��N L d =�B KM I =.�>UuP.; o � 7 # , � 8 , 6 �.y ' 7 , $ # 6�' *-/ ' $' 021 / 3�_ _ } R Z S E | { _ ] [ � ;

Z }

Page 27: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Table 1: Summary Statistics on Firms, Pooled Sample Obs. Mean p50 Std. Dev Min Max Employment 3007 124.93 47 246.29 1 4478 log (Value-Added / Employee)

3007 7.98 8.04 1.25 -0.58 12.75

log (Capital / Employee)

3007 8.41 8.49 1.55 -0.26 12.94

Supervision Ratio 3007 0.35 0.21 0.40 0.00 2.83 Firm Age / 100 3007 0.18 0.14 0.13 0.01 1.03 Any Foreign Ownership 3007 0.21 Location in Capital City 3006 0.56 Manager's Education, Primary

2675 0.13

Manager's Education, Secondary / Prof.

2675 0.44

Manager's Education, University

2675 0.39

Employees Unionised 2933 0.34 Kenya 3007 0.19 Burundi 3007 0.02 Ivory Coast 3007 0.01 Ethiopia 3007 0.03 Cameroon 3007 0.04 Zambia 3007 0.10 Tanzania 3007 0.05 Zimbabwe 3007 0.06 Ghana 3007 0.06 Morocco 3007 0.44 Food Processing 3007 0.18 Wood & Furniture 3007 0.13 Textile & Garments 3007 0.43 Metal & Machinery 3007 0.14 Leather 3007 0.03 Electrical 3007 0.02 Chemicals 3007 0.03 Plastics 3007 0.03

Page 28: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Table 2: Summary Statistics on Workers, Pooled Sample Firm-year Firms Workers Mean p50 Std Dev Min Max

A. Production Workers

Earnings (USD) 4428 2407 16182 160.72 121.31 149.36 10.17 3778.24 Educ 4428 2407 16182 9.11 11 4.03 0 24 Age 4428 2407 16182 34.28 33 9.33 12 79 Tenure 4428 2407 16182 7.81 6 7.05 0 50 Female 4428 2407 16182 0.22 0 0.41 0 1 B. Supervisors Earnings (USD) 3567 1969 9601 342.93 214.09 463.62 10.46 7278.52 Educ 3567 1969 9601 11.82 12 3.93 0 26 Age 3567 1969 9601 35.67 34 8.89 15 78 Tenure 3567 1969 9601 7.18 5 6.44 0 42 Female 3567 1969 9601 0.31 0 0.46 0 1

Page 29: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Tab

le 3

: Ear

ning

s Reg

ress

ions

for

Prod

uctio

n W

orke

rs, w

ith F

irm

Fix

ed E

ffec

ts

Po

oled

K

enya

B

urun

di

Ivor

y C

oast

Et

hiop

ia

Cam

eroo

n Za

mbi

a Ta

nzan

ia

Zim

babw

e G

hana

M

oroc

co

Educ

(yea

rs)

-0.0

1 -0

.01

-0.1

2 0.

01

-0.0

3 -0

.07

-0.0

8 -0

.03

0.03

-0

.06

0.01

(4.0

7)**

(0

.84)

(4

.43)

**

(0.7

1)

(2.0

1)*

(3.4

4)**

(3

.89)

**

(1.8

1)

(1.3

7)

(4.9

6)**

(2

.21)

*

Educ

2 / 10

0 0.

23

0.26

1.

56

0.10

0.

41

0.73

0.

63

0.40

-0

.07

0.62

0.

04

(1

1.60

)**

(4.6

5)**

(7

.24)

**

(1.4

3)

(4.4

4)**

(6

.37)

**

(5.3

0)**

(4

.11)

**

(0.5

2)

(6.7

7)**

(1

.82)

Age

(yea

rs)

0.03

0.

02

-0.0

1 0.

02

0.07

0.

08

0.04

0.

04

0.05

0.

02

0.01

(14.

13)*

* (3

.56)

**

(0.3

6)

(1.6

1)

(8.4

7)**

(5

.28)

**

(4.2

6)**

(5

.04)

**

(4.8

3)**

(3

.36)

**

(4.0

1)**

Age

2 / 10

0 -0

.03

-0.0

1 0.

03

-0.0

1 -0

.07

-0.0

7 -0

.04

-0.0

5 -0

.05

-0.0

2 -0

.01

(9

.65)

**

(1.5

7)

(0.9

9)

(0.5

8)

(6.5

0)**

(3

.76)

**

(3.3

9)**

(4

.28)

**

(4.0

7)**

(2

.35)

* (1

.20)

Tenu

re (y

ears

) 0.

01

0.01

0.

02

0.02

0.

01

0.02

0.

01

0.01

0.

01

0.02

0.

01

(1

5.28

)**

(4.7

8)**

(2

.29)

* (5

.93)

**

(4.0

7)**

(3

.82)

**

(4.2

8)**

(2

.19)

* (4

.89)

**

(9.6

5)**

(6

.90)

**

Fem

ale

-0.1

3 -0

.15

-0.3

1 -0

.27

-0.3

6 -0

.06

0.06

-0

.19

-0.1

2 -0

.00

-0.1

0

(12.

79)*

* (4

.90)

**

(1.7

1)

(3.8

3)**

(9

.65)

**

(0.7

4)

(1.0

3)

(4.2

2)**

(2

.36)

* (0

.10)

(9

.96)

**

Mar

gina

l ret

urn

at E

duc

= 6

0.02

0.

02

0.07

0.

02

0.02

0.

02

0.00

0.

02

0.02

0.

01

0.01

Mar

gina

l ret

urn

at E

duc

= 12

0.

04

0.05

0.

25

0.03

0.

07

0.11

0.

07

0.07

0.

02

0.09

0.

02

R-s

quar

ed

0.15

0.

13

0.42

0.

19

0.30

0.

28

0.13

0.

26

0.15

0.

24

0.13

Obs

erva

tions

16

182

3249

23

9 93

6 95

7 89

5 13

49

691

816

1213

58

37

Abs

olut

e va

lue

of t-

stat

istic

s in

pare

nthe

ses

*

sign

ifica

nt a

t 5%

leve

l; **

sign

ifica

nt a

t 1%

leve

l

Page 30: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Tab

le 4

: Ear

ning

s Reg

ress

ions

for

Supe

rvis

ors,

with

Fir

m F

ixed

Eff

ects

Pool

ed

Ken

ya

Bur

undi

Iv

ory

Coa

st

Ethi

opia

C

amer

oon

Zam

bia

Tanz

ania

Zi

mba

bwe

Gha

na

Mor

occo

Educ

(yea

rs)

-0.0

1 -0

.08

-0.0

1 -0

.01

-0.0

2 -0

.10

-0.1

1 -0

.05

0.23

-0

.04

0.01

(0.9

3)

(2.4

8)*

(0.1

2)

(0.3

4)

(0.3

3)

(3.7

6)**

(2

.61)

**

(1.7

6)

(0.5

6)

(1.4

4)

(1.7

6)

Educ

2 / 10

0 0.

46

0.91

0.

67

0.38

0.

53

0.87

1.

09

0.51

-0

.37

0.75

0.

36

(1

4.90

)**

(5.7

9)**

(2

.79)

**

(2.0

0)*

(2.0

9)*

(6.9

2)**

(5

.59)

**

(3.8

3)**

(0

.19)

(4

.78)

**

(9.7

1)**

Age

(yea

rs)

0.04

0.

09

0.05

0.

04

0.06

0.

06

0.07

0.

03

-0.0

0 0.

03

0.03

(8.6

9)**

(5

.40)

**

(0.8

8)

(1.5

9)

(2.7

0)**

(2

.55)

* (4

.44)

**

(2.5

3)*

(0.0

5)

(2.2

0)*

(4.0

5)**

Age

2 / 10

0 -0

.03

-0.0

9 -0

.03

-0.0

3 -0

.06

-0.0

4 -0

.07

-0.0

2 0.

02

-0.0

2 -0

.02

(5

.10)

**

(4.1

4)**

(0

.35)

(0

.98)

(1

.96)

(1

.36)

(3

.25)

**

(1.3

1)

(0.4

2)

(1.0

7)

(1.8

6)

Tenu

re (y

ears

) 0.

01

0.00

-0

.00

0.01

0.

01

0.00

-0

.00

0.01

0.

01

0.01

0.

02

(8

.51)

**

(0.9

5)

(0.2

4)

(2.2

7)*

(1.3

8)

(0.5

3)

(0.1

7)

(2.1

1)*

(1.6

8)

(3.2

6)**

(9

.82)

**

Fem

ale

-0.1

6 -0

.03

0.20

-0

.10

-0.0

4 -0

.05

-0.0

8 -0

.10

0.08

-0

.14

-0.2

3

(11.

28)*

* (0

.70)

(1

.25)

(1

.30)

(0

.40)

(1

.12)

(1

.73)

(2

.19)

* (0

.49)

(2

.57)

* (1

1.80

)**

Mar

gina

l ret

urn

at E

duc

= 6

0.05

0.

03

0.07

0.

04

0.05

0.

01

0.02

0.

01

0.18

0.

05

0.05

Mar

gina

l ret

urn

at E

duc

= 12

0.

10

0.14

0.

15

0.08

0.

11

0.11

0.

15

0.07

0.

14

0.14

0.

10

R-s

quar

ed

0.34

0.

26

0.65

0.

18

0.30

0.

32

0.31

0.

36

0.22

0.

33

0.40

Obs

erva

tions

96

01

1258

95

40

3 24

6 71

4 94

2 65

4 22

7 57

7 44

85

Page 31: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Table 5: The Firm-Size Earnings Relation Definition Wage Variable* Size Variable Coef. t-value Size Variable Coef. t-value

FE, pooled log(Prod.work.) 0.090 15.773 log(Supervisors) 0.132 12.922

FE, country-spec. 0.091 15.938 0.133 12.930

OLS, pooled 0.069 13.068 0.123 12.557

OLS, country -spec. 0.068 13.114 0.120 12.438

FE, pooled log(Employment) 0.096 17.047 log(Employment) 0.105 12.623

FE, country-spec. 0.097 17.281 0.110 13.147

OLS, pooled 0.078 14.939 0.098 12.293

OLS, country -spec. 0.076 14.918 0.098 12.497

FE, pooled log(Capital) 0.050 14.484 log(Capital) 0.065 12.158

FE, country-spec. 0.051 15.021 0.066 12.223

OLS, pooled 0.035 10.812 0.058 11.306

OLS, country -spec. 0.034 10.927 0.057 11.292

Note: FE, pooled = Fixed Effects from Pooled regression; FE, c-spec. = Fixed Effects from country regressions; OLS, pooled = Average residual from Pooled regression; FE, c-spec. = Average residual from country regressions.

Page 32: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Tab

le 6

: Val

ue-A

dded

Pro

duct

ion

Func

tions

: OL

S E

stim

ates

Pool

ed

Ken

ya

Bur

undi

Iv

ory

Coa

st

Ethi

opia

C

amer

oon

Zam

bia

Tanz

ania

Zi

mba

bwe

Gha

na

Mor

occo

log

Cap

ital

0.32

0.

42

0.20

0.

39

0.23

0.

52

0.21

0.

18

0.23

0.

12

0.34

(16.

84)*

* (8

.93)

**

(1.9

9)

(3.5

2)**

(1

.78)

(6

.12)

**

(3.0

6)**

(3

.50)

**

(4.0

3)**

(1

.96)

(1

4.71

)**

log

(Pro

duct

ion

0.78

0.

63

1.27

0.

95

0.95

0.

28

0.97

0.

98

0.91

1.

07

0.85

w

orke

rs +

1)

(19.

26)*

* (6

.65)

**

(3.9

4)**

(4

.00)

**

(2.8

2)**

(2

.00)

* (7

.14)

**

(7.8

7)**

(8

.39)

**

(8.0

0)**

(1

8.72

)**

log

(Sup

er-

0.33

0.

43

0.14

0.

30

0.16

0.

18

0.37

0.

42

0.27

0.

60

0.31

vi

sion

ratio

) (9

.12)

**

(4.7

7)**

(0

.81)

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Table 7: Value-Added Production Functions: IV Estimates$ [1] Pooled [2] Sub-Saharan

Africa [3] Morocco [4] Pooled

log Capital 0.21 0.20 0.23 0.19 (9.61)** (6.38)** (8.53)** (5.22)**

log (Production 1.21 1.17 1.26 1.28 workers + 1) (21.20)** (14.58)** (16.76)** (7.45)**

log (Super- 0.66 0.70 0.63 0.79 vision ratio) (11.73)** (8.06)** (9.29)** (2.65)**

Firm earnings 0.38 0.50 0.13 0.38 effect, prod.w. (5.50)** (5.17)** (1.47) (5.28)**

Firm earnings 0.13 0.16 0.13 0.12 effect, superv. (2.56)* (1.64) (1.58) (2.18)*

Earnings effect 0.40 0.41 0.46 0.41 superv. missing (2.51)* (1.79) (1.49) (2.50)*

Firm age / 100 0.50 0.71 0.11 0.49 (2.34)* (2.18)* (0.43) (2.28)*

Any foreign 0.15 0.28 0.04 0.14 ownership (2.14)* (2.09)* (0.60) (2.05)* Endogenous log(product. work) log(product. work) log(product. work) log(product. work),

log(superv. ratio) R-squared 0.78 0.71 0.75 0.77 Observations 2446 1176 1270 2446 Robust t-statistics in parentheses. * significant at 5% level; ** significant at 1% level. $ The instruments are: total number of employees in previous period; education of manager or owner; location in capital city; and all exogenous variables in the structural specification.

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Table 8: GMM Estimates of Structural Parameters$ [1] Eq. (1)-(3) [2] Eq. (1)-(3) [3] Eq. (1)-(5) Coef. Std. Coef. Std. Coef. Std. β 1 0.238 0.020 0.229 0.020 0.238 0.008 β 2 0.902 0.031 0.898 0.031 0.602 0.013 α 0.910 0.120 1.100 0.099 0.856 0.044 Firm age / 100 0.653 0.196 0.637 0.198 0.001 0.075 Any foreign ownership 0.061 0.056 0.037 0.058 0.171 0.025 Ivory Coast 0.980 0.301 0.993 0.323 0.519 0.173 Ethiopia 0.257 0.326 0.134 0.305 -0.415 0.205 Cameroon 0.501 0.544 0.356 0.534 0.595 0.092 Zambia 0.244 0.207 0.101 0.204 0.004 0.070 Tanzania -0.400 0.226 -0.385 0.222 -0.453 0.081 Zimbabwe -0.044 0.190 -0.045 0.180 0.351 0.088 Ghana -0.055 0.215 -0.167 0.214 -0.187 0.078 Morocco 0.167 0.143 0.110 0.143 0.774 0.051 Kenya x 1993 -0.423 0.198 -0.519 0.203 -0.072 0.069 Kenya x 1994 -0.297 0.226 -0.355 0.227 -0.069 0.078 Kenya x 1998 0.211 0.273 0.024 0.270 -0.098 0.087 Kenya x 1999 -0.181 0.173 -0.191 0.173 -0.007 0.060 Cameroon x 1993 1.192 0.682 1.299 0.686 -0.460 0.103 Cameroon x 1994 2.180 0.694 2.239 0.676 -0.770 0.151 Zambia x 1993 -0.665 0.251 -0.584 0.249 -0.112 0.082 Zambia x 1994 -0.400 0.243 -0.405 0.241 0.025 0.087 Tanzania x 1993 -0.374 0.411 -0.353 0.483 -0.156 0.168 Tanzania x 1993 0.272 0.279 0.233 0.274 0.186 0.122 Zimbabwe x 1993 0.273 0.154 0.152 0.151 0.084 0.087 Ghana x 1993 -0.392 0.205 -0.255 0.209 0.297 0.087 Morocco x 1999 -0.041 0.043 -0.052 0.044 -0.010 0.020 Food -0.212 0.132 -0.117 0.133 -0.211 0.045 Wood -0.667 0.138 -0.618 0.138 -0.104 0.049 Textile -0.837 0.130 -0.774 0.132 -0.047 0.045 Leather -0.840 0.160 -0.794 0.161 0.030 0.053 Electrical -0.421 0.153 -0.297 0.158 0.019 0.058 Chemical 0.015 0.167 0.206 0.169 0.152 0.060 Plastics -0.388 0.155 -0.349 0.160 -0.394 0.051 Arguments of Vs

U and VbU

Country dummies yes yes yes Sector dummies no yes no Country and time no no no

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Table 8 continued [1] Eq. (1)-(3) [2] Eq. (1)-(3) [3] Eq. (1)-(5) Supervisors� outside option, by country*:

)( UsrVE )( U

srVStd )( UsrVE )( U

srVStd )( UsrVE )( U

srVStd

Kenya 260.2 18.3 298.3 -- 179.6 21.8 Ivory Coast 1220.9 --- 1220.9 -- 1220.9 --- Ethiopia 176.2 21.8 282.8 -- 153.4 44.9 Cameroon 937.6 92.3 1083.9 -- 850.1 126.0 Zambia 271.1 22.9 288.7 -- 227.5 34.4 Tanzania 177.7 --- 177.7 -- 177.7 --- Zimbabwe 384.9 48.3 437.9 -- 339.9 49.0 Ghana 281.5 27.5 351.6 -- 180.9 40.2 Morocco 1438.2 --- 1438.2 -- 1427.9 28.0

Production workers� outside option, by country*:

)( UsrVE )( U

srVStd )( UsrVE )( U

srVStd )( UsrVE )( U

srVStd

Kenya 100.0 14.4 59.0 7.9 102.1 41.7 Ivory Coast 845.6 --- 549.6 140.4 845.6 --- Ethiopia 121.5 54.4 248.2 --- 211.2 53.4 Cameroon 0.0 --- 416.5 92.5 0.0 --- Zambia 0.0 --- 49.7 7.6 0.0 --- Tanzania 18.2 12.7 36.9 6.7 6.7 14.0 Zimbabwe 301.1 30.3 136.5 17.1 359.1 46.8 Ghana 79.2 26.1 72.8 12.3 84.0 49.5 Morocco 1293.9 20.9 1314.8 --- 1352.9 11.6

Sargan-Hansen J-stat. 380.2 218.4 922.8

p-value 0.000 0.001 0.000 LM-stat.(1) 30.36 60.39 420.86

p-value 0.40 0.99 0.00 Step 5 3 2 Observations 1794 1794 1794 $ The instruments are: total number of employees in previous period; education of manager or owner; location in capital city; and all exogenous variables in the structural specification. * All numbers in USD. (1) Tests the hypothesis that all cross-equation restrictions hold.

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Data Appendix

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Table A1: Summary Statistics on Firms, by Country N mean p50 sd min max Kenya Employment 585 107.04 35.00 243.71 1.00 2397.00 log (Value-Added / Employee) 585 7.55 7.57 1.29 3.03 12.39 log (Capital / Employee) 585 8.38 8.61 1.71 2.94 12.94 Supervision Ratio 585 0.47 0.34 0.41 0.02 2.83 Any Foreign Ownership 585 0.18 0.00 0.39 0.00 1.00 Firm Age / 100 585 0.22 0.20 0.15 0.01 0.74 Location in Capital City 585 0.61 1.00 0.49 0.00 1.00 Manager's Education, CAT=1 543 0.15 0.00 0.36 0.00 1.00 Manager's Education, CAT=2 543 0.54 1.00 0.50 0.00 1.00 Manager's Education, CAT=3 543 0.30 0.00 0.46 0.00 1.00 Employees Unionised 577 0.50 0.00 0.50 0.00 1.00 Burundi Employment 52 85.85 20.00 230.89 1.00 1399.00 log (Value-Added / Employee) 52 7.31 7.30 1.11 5.55 11.18 log (Capital / Employee) 52 7.86 7.63 1.75 4.56 11.71 Supervision Ratio 52 0.35 0.25 0.31 0.05 1.58 Any Foreign Ownership 52 0.37 0.00 0.49 0.00 1.00 Firm Age / 100 52 0.10 0.06 0.12 0.01 0.46 Location in Capital City 51 0.82 1.00 0.39 0.00 1.00 Manager's Education, CAT=1 38 0.29 0.00 0.46 0.00 1.00 Manager's Education, CAT=2 38 0.66 1.00 0.48 0.00 1.00 Manager's Education, CAT=3 38 0.00 0.00 0.00 0.00 0.00 Employees Unionised 48 0.19 0.00 0.39 0.00 1.00 Ivory Coast Employment 43 78.60 43.00 95.14 1.00 453.00 log (Value-Added / Employee) 43 8.57 8.40 1.16 5.95 11.33 log (Capital / Employee) 43 8.34 8.60 1.64 2.89 10.95 Supervision Ratio 43 0.34 0.18 0.37 0.03 1.81 Any Foreign Ownership 43 0.70 1.00 0.46 0.00 1.00 Firm Age / 100 43 0.15 0.12 0.10 0.02 0.46 Location in Capital City 43 0.74 1.00 0.44 0.00 1.00 Manager's Education, CAT=1 30 0.17 0.00 0.38 0.00 1.00 Manager's Education, CAT=2 30 0.70 1.00 0.47 0.00 1.00 Manager's Education, CAT=3 30 0.07 0.00 0.25 0.00 1.00 Employees Unionised 41 0.59 1.00 0.50 0.00 1.00 Ethiopia Employment 82 14.87 8.00 21.75 2.00 139.00 log (Value-Added / Employee) 82 7.64 7.57 1.36 4.00 10.80 log (Capital / Employee) 82 8.27 8.18 1.31 3.80 11.18 Supervision Ratio 82 0.25 0.20 0.21 0.01 1.50 Any Foreign Ownership 82 0.02 0.00 0.16 0.00 1.00 Firm Age / 100 82 0.13 0.14 0.10 0.01 0.50 Location in Capital City 82 1.00 1.00 0.00 1.00 1.00

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Table A1 (continued) N mean p50 sd min max Ethiopia Manager's Education, CAT=1 82 0.32 0.00 0.47 0.00 1.00 Manager's Education, CAT=2 82 0.44 0.00 0.50 0.00 1.00 Manager's Education, CAT=3 82 0.15 0.00 0.36 0.00 1.00 Employees Unionised 82 0.00 0.00 0.00 0.00 0.00 Cameroon Employment 132 90.08 26.50 314.70 2.00 3262.00 log (Value-Added / Employee) 132 9.08 9.21 1.43 3.41 12.75 log (Capital / Employee) 132 9.50 9.50 1.44 5.53 12.70 Supervision Ratio 132 0.72 0.73 0.51 0.06 2.00 Any Foreign Ownership 132 0.36 0.00 0.48 0.00 1.00 Firm Age / 100 132 0.13 0.09 0.11 0.01 0.49 Location in Capital City 132 0.78 1.00 0.42 0.00 1.00 Manager's Education, CAT=1 71 0.08 0.00 0.28 0.00 1.00 Manager's Education, CAT=2 71 0.54 1.00 0.50 0.00 1.00 Manager's Education, CAT=3 71 0.38 0.00 0.49 0.00 1.00 Employees Unionised 130 0.41 0.00 0.49 0.00 1.00 Zambia Employment 309 109.01 35.00 247.68 1.00 3001.00 log (Value-Added / Employee) 309 7.67 7.82 1.46 0.80 10.79 log (Capital / Employee) 309 8.45 8.62 1.60 -0.26 12.28 Supervision Ratio 309 0.67 0.53 0.46 0.08 2.81 Any Foreign Ownership 309 0.16 0.00 0.37 0.00 1.00 Firm Age / 100 309 0.19 0.18 0.12 0.01 0.64 Location in Capital City 309 0.46 0.00 0.50 0.00 1.00 Manager's Education, CAT=1 226 0.12 0.00 0.32 0.00 1.00 Manager's Education, CAT=2 226 0.64 1.00 0.48 0.00 1.00 Manager's Education, CAT=3 226 0.22 0.00 0.42 0.00 1.00 Employees Unionised 308 0.52 1.00 0.50 0.00 1.00 Tanzania Employment 140 128.66 19.00 326.89 1.00 2103.00 log (Value-Added / Employee) 140 6.94 7.03 1.35 -0.58 10.12 log (Capital / Employee) 140 7.96 8.16 1.93 2.57 12.08 Supervision Ratio 140 0.59 0.48 0.50 0.04 2.67 Any Foreign Ownership 140 0.14 0.00 0.34 0.00 1.00 Firm Age / 100 140 0.16 0.14 0.13 0.01 1.03 Location in Capital City 140 0.33 0.00 0.47 0.00 1.00 Manager's Education, CAT=1 101 0.31 0.00 0.46 0.00 1.00 Manager's Education, CAT=2 101 0.54 1.00 0.50 0.00 1.00 Manager's Education, CAT=3 101 0.13 0.00 0.34 0.00 1.00 Employees Unionised 138 0.52 1.00 0.50 0.00 1.00

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Table A1 (continued) N mean p50 sd min max Zimbabwe Employment 174 224.10 110.00 422.93 5.00 4478.00 log (Value-Added / Employee) 174 8.22 8.21 0.91 4.53 10.17 log (Capital / Employee) 174 8.17 8.18 1.44 0.72 11.66 Supervision Ratio 174 0.27 0.18 0.24 0.04 1.78 Any Foreign Ownership 174 0.21 0.00 0.41 0.00 1.00 Firm Age / 100 174 0.26 0.25 0.16 0.01 0.86 Location in Capital City 174 0.44 0.00 0.50 0.00 1.00 Manager's Education, CAT=1 125 0.09 0.00 0.28 0.00 1.00 Manager's Education, CAT=2 125 0.87 1.00 0.34 0.00 1.00 Manager's Education, CAT=3 125 0.02 0.00 0.13 0.00 1.00 Employees Unionised 173 0.82 1.00 0.38 0.00 1.00 Ghana Employment 181 72.68 29.00 109.18 2.00 617.00 log (Value-Added / Employee) 181 7.21 7.24 1.12 4.42 9.95 log (Capital / Employee) 181 7.93 8.25 1.86 2.85 11.43 Supervision Ratio 181 0.56 0.37 0.50 0.00 2.83 Any Foreign Ownership 181 0.24 0.00 0.43 0.00 1.00 Firm Age / 100 181 0.17 0.14 0.13 0.01 0.67 Location in Capital City 181 0.08 0.00 0.28 0.00 1.00 Manager's Education, CAT=1 150 0.07 0.00 0.25 0.00 1.00 Manager's Education, CAT=2 150 0.63 1.00 0.49 0.00 1.00 Manager's Education, CAT=3 150 0.21 0.00 0.41 0.00 1.00 Employees Unionised 181 0.39 0.00 0.49 0.00 1.00 Morocco Employment 1309 143.82 70.00 214.96 2.00 3064.00 log (Value-Added / Employee) 1309 8.34 8.28 0.94 1.98 11.72 log (Capital / Employee) 1309 8.48 8.42 1.33 3.38 12.22 Supervision Ratio 1309 0.14 0.09 0.17 0.00 2.44 Any Foreign Ownership 1309 0.20 0.00 0.40 0.00 1.00 Firm Age / 100 1309 0.16 0.13 0.12 0.01 0.81 Location in Capital City 1309 0.61 1.00 0.49 0.00 1.00 Manager's Education, CAT=1 1309 0.11 0.00 0.31 0.00 1.00 Manager's Education, CAT=2 1309 0.28 0.00 0.45 0.00 1.00 Manager's Education, CAT=3 1309 0.57 1.00 0.49 0.00 1.00 Employees Unionised 1255 0.15 0.00 0.36 0.00 1.00

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Table A2: Summary Statistics on Workers, by Country Firm-year Firms Workers Mean p50 Std Dev Min Max

A. Production Workers Kenya Earnings (USD) 835 331 3249 78.57 62.07 58.99 10.17 489.38 Educ 835 331 3249 9.44 8.00 2.97 0.00 16.00 Age 835 331 3249 35.04 33.00 9.66 12.00 72.00 Tenure 835 331 3249 8.88 7.00 7.65 0.00 50.00 Female 835 331 3249 0.09 0.00 0.29 0.00 1.00

Burundi Earnings (USD) 93 93 239 73.90 50.89 72.20 13.44 489.67 Educ 93 93 239 7.58 8.00 3.38 0.00 16.00 Age 93 93 239 31.77 30.00 9.80 16.00 67.00 Tenure 93 93 239 5.22 3.00 6.12 0.08 36.00 Female 93 93 239 0.05 0.00 0.23 0.00 1.00

Ivory Earnings (USD) 237 170 936 136.96 114.48 80.84 10.81 492.21 Coast Educ 237 170 936 7.91 8.00 4.81 0.00 16.00 Age 237 170 936 34.96 34.00 8.72 15.00 69.00 Tenure 237 170 936 7.72 6.00 6.93 0.00 37.00 Female 237 170 936 0.06 0.00 0.23 0.00 1.00

Ethiopia Earnings (USD) 185 185 957 82.94 67.44 60.60 10.26 362.18 Educ 185 185 957 9.71 12.00 3.77 0.00 16.00 Age 185 185 957 29.35 27.00 10.16 15.00 70.00 Tenure 185 185 957 6.68 4.00 6.85 0.00 39.00 Female 185 185 957 0.25 0.00 0.43 0.00 1.00

Cameroon Earnings (USD) 301 177 895 225.88 176.58 167.03 15.11 959.70 Educ 301 177 895 10.58 12.00 2.77 0.00 16.00 Age 301 177 895 33.72 33.00 7.80 16.00 68.00 Tenure 301 177 895 6.94 5.00 6.25 0.08 39.00 Female 301 177 895 0.06 0.00 0.24 0.00 1.00

Zambia Earnings (USD) 487 240 1349 87.48 66.26 70.02 10.60 499.38 Educ 487 240 1349 10.57 12.00 2.62 0.00 14.00 Age 487 240 1349 33.72 32.00 9.91 15.00 67.00 Tenure 487 240 1349 6.93 4.50 6.97 0.00 38.00 Female 487 240 1349 0.11 0.00 0.31 0.00 1.00

Tanzania Earnings (USD) 262 189 691 40.36 31.91 31.39 10.43 463.54 Educ 262 189 691 8.80 8.00 2.77 0.00 16.00 Age 262 189 691 33.58 32.00 10.02 16.00 70.00 Tenure 262 189 691 7.91 6.00 7.19 0.08 38.00 Female 262 189 691 0.14 0.00 0.35 0.00 1.00

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Table A2 (continued) Firm-year Firms Workers Mean p50 Std Dev Min Max

Zimbabwe Earnings (USD) 206 107 816 110.21 87.00 69.94 10.79 446.60 Educ 206 107 816 9.72 8.00 2.51 0.00 16.00 Age 206 107 816 37.21 37.00 10.69 18.00 77.00 Tenure 206 107 816 10.66 10.00 8.26 0.04 40.00 Female 206 107 816 0.13 0.00 0.34 0.00 1.00

Ghana Earnings (USD) 345 161 1213 65.12 55.73 43.38 10.52 402.67 Educ 345 161 1213 10.41 11.00 3.55 0.00 16.00 Age 345 161 1213 33.14 31.00 9.80 14.00 79.00 Tenure 345 161 1213 6.66 5.00 6.54 0.00 48.00 Female 345 161 1213 0.18 0.00 0.39 0.00 1.00

Morocco Earnings (USD) 1477 754 5837 274.68 221.39 165.72 68.80 3778.24 Educ 1477 754 5837 8.20 10.00 4.89 0.00 24.00 Age 1477 754 5837 34.77 34.00 8.39 16.00 68.00 Tenure 1477 754 5837 7.70 6.00 6.61 0.00 42.00 Female 1477 754 5837 0.39 0.00 0.49 0.00 1.00 B. Supervisors Kenya Earnings (USD) 536 249 1258 138.73 100.80 106.16 15.52 497.04 Educ 536 249 1258 11.38 12.00 2.66 0.00 17.00 Age 536 249 1258 33.23 31.00 8.74 16.00 65.00 Tenure 536 249 1258 7.06 5.00 6.70 0.00 38.00 Female 536 249 1258 0.29 0.00 0.45 0.00 1.00

Burundi Earnings (USD) 47 47 95 147.96 120.02 109.91 24.00 480.07 Educ 47 47 95 10.81 11.00 4.37 0.00 16.00 Age 47 47 95 33.23 32.00 8.66 19.00 63.00 Tenure 47 47 95 5.57 3.75 6.61 0.17 38.00 Female 47 47 95 0.22 0.00 0.42 0.00 1.00

Ivory Earnings (USD) 163 118 403 217.25 189.12 115.95 21.61 498.54 Coast Educ 163 118 403 11.44 12.00 3.08 0.00 16.00 Age 163 118 403 35.66 35.00 7.68 19.00 63.00 Tenure 163 118 403 7.49 5.75 6.27 0.17 29.00 Female 163 118 403 0.17 0.00 0.38 0.00 1.00

Ethiopia Earnings (USD) 104 104 246 152.16 124.89 120.19 14.27 713.65 Educ 104 104 246 11.77 12.00 2.67 0.00 16.00 Age 104 104 246 31.42 30.00 9.86 17.00 70.00 Tenure 104 104 246 7.06 5.00 7.22 0.00 40.00 Female 104 104 246 0.38 0.00 0.49 0.00 1.00

The table continues on the next page.

Page 42: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Figu

re 1

. Sup

ervi

sion

and

Firm

Siz

e

0200

400

600

800

1000

Number

ofWorkers

0.02

0.03

0.04

0.05

0.06

0.07

srosivrepuSreprekrow

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Figu

re 2

. Wag

es a

nd F

irm

Siz

e �

supe

rviso

r w

ages

in b

old

0200

400

600

800

1000

Number

ofWorkers

020406080 segaW

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Figure 3a. Supervision Ratio and Firm Size

Supervision ratio and firm sizelnb

yhat upper lower

1.09861 6.21661

-.154399

.333398

Figure 3b. Producer Wage and Firm Size

Wage of producer and firm sizelnb

yhat upper lower

1.09861 6.21661

-.152814

.272969

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Figure 3c. Supervisor Wage and Firm size

Wage of supervisor and firm sizelnb

yhat upper lower

1.09861 6.21661

-.227753

.325189

Figure 3d. Supervisor/Producer Wage Differential and Firm size (employment)

Ratio of wages and firm sizeRatio of wages and firm sizelnblnb

yhat yhat upper upper lower lower

1.098611.09861 6.216616.21661

-.192044-.192044

.129429.129429

Page 46: new nonpar figuresweb.williams.edu/Economics/neudc/papers/wagesafr.pdf · 2 1 . " & % % % * , K 7 , 2 . * / 1 - , " - . % '23 % , + " L " b ! *& %. ." K , #( - * , " '(f !, , % &*

Figure 4 Supervisor/Producer Wage Differential and Firm size (capital)

Ratio of wages and firm sizelkap

yhat upper lower

7.41815 16.3004

-.334267

.134928

Figure 5. Firm size, Wages and Supervision:

Implications of Structural Estimates

60

80

100

120

140

160

180

100 110 120 130 140 150 160 170 180 190 200

Cap

ital (

base

=100

)

w_b w_s suprat