Table 2

Estimation of the wage stochastic frontier models

Full sampleOnly 40 h
(1)(2)(3)(4)(5)(6)
ALS77CFG95 - UCFG95 - bothALS77CFG95 - UCFG95 - both
Intercept7.6704***7.1267***7.6301***10.1047***10.0661***10.0908***
(0.4600)(0.4921)(0.4947)(0.0308)(0.0292)(0.0328)
Log(Worked hours)0.3174***0.3837***0.3216***   
(0.0574)(0.0605)(0.0616)   
D_Female−0.1236*** −0.0376*−0.1133*** −0.0252
(0.0141) (0.0198)(0.0181) (0.0196)
Log(Work experience)0.1382***0.1428***0.1374***0.1362***0.1384***0.1369***
(0.0076)(0.0070)(0.0078)(0.0041)(0.0035)(0.0039)
D_edu_primary−0.4281***−0.4238***−0.4259***−0.5034***−0.4920***−0.4997***
(0.0327)(0.0370)(0.0376)(0.0707)(0.0687)(0.0694)
D_edu_lowsec−0.3435***−0.3428***−0.3462***−0.3545***−0.3511***−0.3584***
(0.0251)(0.0252)(0.0259)(0.0256)(0.0255)(0.0259)
D_edu_upsec−0.2263***−0.2228***−0.2257***−0.2458***−0.2382***−0.2471***
(0.0016)(0.0062)(0.0036)(0.0056)(0.0057)(0.0062)
D_edu_training−0.1972***−0.2072***−0.2019***−0.1964***−0.2000***−0.2029***
(0.0179)(0.0136)(0.0166)(0.0190)(0.0100)(0.0160)
D_manager0.6203***0.5804***0.6026***0.6038***0.5801***0.5858***
(0.0624)(0.0647)(0.0649)(0.0743)(0.0681)(0.0738)
D_professional0.1824***0.1582***0.1798***0.1657***0.1490***0.1614***
(0.0105)(0.0124)(0.0095)(0.0267)(0.0276)(0.0276)
D_admin0.0952***0.0687***0.0935***0.0680**0.04540.0653**
(0.0075)(0.0096)(0.0090)(0.0276)(0.0278)(0.0294)
D_service_worker−0.0075−0.0319***−0.0060−0.0493**−0.0695***−0.0503**
(0.0067)(0.0049)(0.0054)(0.0237)(0.0236)(0.0247)
D_craft_workers−0.0592***−0.0625***−0.0573***−0.0535***−0.0548***−0.0526**
(0.0203)(0.0223)(0.0195)(0.0190)(0.0207)(0.0205)
D_manufacturing0.0412***0.0513***0.0383***0.0179*0.0232*0.0152
(0.0086)(0.0073)(0.0093)(0.0105)(0.0136)(0.0106)
D_trade−0.0484***−0.0449**−0.0540***−0.0399−0.0413−0.0457
(0.0185)(0.0196)(0.0194)(0.0271)(0.0299)(0.0284)
D_construction−0.0514***−0.0304**−0.0548***−0.0678***−0.0537**−0.0714***
(0.0144)(0.0145)(0.0135)(0.0214)(0.0214)(0.0210)
D_ever_married0.0971***0.0522***0.0971***0.0818***0.0497***0.0813***
(0.0152)(0.0197)(0.0150)(0.0110)(0.0178)(0.0108)
D_Female*D_ever_married−0.0608*** −0.1614***−0.0800*** −0.1711***
(0.0126) (0.0325)(0.0211) (0.0502)
D_rural_areas−0.0289*−0.0260*−0.0279**−0.0288*−0.0223−0.0288**
(0.0150)(0.0143)(0.0135)(0.0158)(0.0136)(0.0135)
D_access_internet0.0614***0.0601***0.0599***0.0759***0.0756***0.0784***
(0.0122)(0.0099)(0.0097)(0.0171)(0.0149)(0.0152)
D_NorthEast−0.0160***−0.0160***−0.0156***−0.0070***−0.0036**−0.0049***
(0.0021)(0.0020)(0.0019)(0.0021)(0.0014)(0.0015)
D_Centre−0.1029***−0.1037***−0.1027***−0.0726***−0.0715***−0.0722***
(0.0028)(0.0025)(0.0027)(0.0025)(0.0030)(0.0023)
D_South−0.1442***−0.1410***−0.1438***−0.1439***−0.1357***−0.1455***
(0.0085)(0.0070)(0.0080)(0.0030)(0.0040)(0.0029)
D_Islands−0.1210***−0.1273***−0.1239***−0.1383***−0.1446***−0.1389***
(0.0069)(0.0061)(0.0068)(0.0024)(0.0048)(0.0048)
Var(u)
Intercept−1.0594***−1.3065***−1.1547***−1.1305***−1.3561***−1.2379***
(0.1282)(0.1632)(0.1361)(0.1459)(0.1834)(0.1690)
D_Female 0.6944***0.5481*** 0.6771***0.5669***
 (0.1175)(0.1369) (0.1153)(0.1164)
D_Female*D_ever_married −0.3272−0.6546** −0.1917−0.5853*
 (0.2050)(0.2710) (0.2074)(0.3372)
N. of obs.6,3466,3466,3463,4153,4153,415
N_clust555555
Log-likelihood−3,422−3,449−3,382−1,726−1,740−1,708
AIC6,9406,9946,8643,5483,5763,516
sigma_u0.589..0.568..
sigma_v0.2420.2510.2440.2350.2410.236
Lambda2.429..2.418..

Note(s): Significance levels: ***p < 0.01, **p < 0.05, *p < 0.1. Clustered standard errors by macro-regions are in parentheses

Source(s): Authors' own elaborations on data from EU-SILC for Italy
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