Skip to main content

Table 10 Effects of windfall gains and interactions – all

From: Windfall gains and labour supply: evidence from the European household panel

Dependent variable:

Employment dummy

Working hours per week

Log working hours per week

 

(1)

(2)

(3)

(4)

(5)

 

FE

FE

FE IV

FE

FE IV

Windfall gains dummy

−0.351***

−11.64***

−11.52***

0.0568

−6.97e-05

 

(0.0582)

(2.579)

(2.633)

(0.0631)

(0.0670)

Hourly wage

 

−0.912***

−0.158

  
  

(0.0334)

(0.300)

  

Interaction of windfall gains with wage

 

0.117***

−0.187

  
 

(0.0287)

(0.118)

  

Log hourly wage

   

−0.399***

−0.193***

    

(0.00714)

(0.0475)

Interaction of windfall gains with log wage

   

−0.00797

0.00363

   

(0.00617)

(0.0196)

Age

0.0700***

3.371***

2.969***

0.0529***

0.0324***

 

(0.00378)

(0.168)

(0.207)

(0.00410)

(0.00569)

Interaction of windfall gains with age

0.0186***

0.637***

0.726***

−0.000138

0.00192

(0.00291)

(0.129)

(0.134)

(0.00318)

(0.00339)

Age^2

−0.000843***

−0.0390***

−0.0367***

−0.000440***

−0.000312***

 

(4.53e-05)

(0.00201)

(0.00209)

(4.97e-05)

(5.52e-05)

Interaction of windfall gains with age^2

−0.000217***

−0.00792***

−0.00869***

−7.41e-06

−3.52e-05

(3.45e-05)

(0.00153)

(0.00157)

(3.82e-05)

(4.02e-05)

Married dummy

0.0398***

2.082***

2.115***

0.0268***

0.0221***

 

(0.00790)

(0.350)

(0.361)

(0.00781)

(0.00824)

Interaction of windfall gains with married dummy

−0.0436***

−1.505***

−1.619***

−0.0233***

−0.0244***

(0.00694)

(0.308)

(0.316)

(0.00702)

(0.00724)

Children 0–6 in hhold dummy

−0.0425***

−1.978***

−2.251***

−0.0332***

−0.0371***

 

(0.00740)

(0.328)

(0.336)

(0.00732)

(0.00760)

Interaction of windfall gains with children 0–6 dummy

−0.00801

−1.223***

−0.947***

−0.0247***

−0.0247***

(0.00783)

(0.347)

(0.358)

(0.00783)

(0.00827)

Children 7–15 in hhold dummy

q

−2.135***

−2.149***

−0.0303***

−0.0312***

 

(0.00676)

(0.299)

(0.304)

(0.00679)

(0.00699)

Interaction of windfall gains with children 7–15 dummy

0.00822

0.0116

0.0738

0.00755

0.00931

(0.00755)

(0.334)

(0.339)

(0.00756)

(0.00778)

Constant

−0.610***

−32.06***

−25.22***

3.009***

3.222***

 

(0.0765)

(3.395)

(3.928)

(0.0807)

(0.0897)

Observations

54164

53011

52348

40239

39789

Number of individuals

10395

10357

10322

8735

8700

R-squared

0.026

0.051

 

0.128

 

Hausman test+

  

0.001

 

0.000

  1. Standard errors in parentheses, *significant at 10%; **significant at 5%; ***significant at 1%. +Reports p-value of the Hausman test of endogeneity. In IV regression (log) hourly wage is instrumented using two dummies for education, interactions between education dummies and quartic in age and country-year dummies. All regressions include individual fixed-effects.
Back to article page