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Table 11 Effects of windfall gains and interactions – men

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

−0.292***

−12.85***

−12.35***

−0.00101

−0.0175

 

(0.0719)

(3.857)

(3.929)

(0.0688)

(0.0718)

Hourly wage

 

−0.933***

−0.510

  
  

(0.0446)

(0.334)

  

Interaction of windfall gains with wage

 

0.0820**

−0.212

  
  

(0.0393)

(0.144)

  

Log hourly wage

   

−0.366***

−0.185***

    

(0.00810)

(0.0465)

Interaction of windfall gains with log wage

   

−0.00325

−0.0191

   

(0.00685)

(0.0201)

Age

0.0862***

4.614***

4.361***

0.0560***

0.0388***

 

(0.00470)

(0.252)

(0.288)

(0.00448)

(0.00612)

Interaction of windfall gains with age

0.0154***

0.687***

0.750***

0.00231

0.00469

 

(0.00360)

(0.193)

(0.200)

(0.00347)

(0.00373)

Age^2

−0.00104***

−0.0531***

−0.0516***

−0.000498***

−0.000386***

 

(5.60e-05)

(0.00300)

(0.00307)

(5.39e-05)

(6.03e-05)

Interaction of windfall gains with age^2

−0.000180***

−0.00862***

−0.00898***

−3.98e-05

−6.76e-05

(4.26e-05)

(0.00228)

(0.00233)

(4.14e-05)

(4.38e-05)

Married dummy

0.0353***

2.579***

2.514***

0.0387***

0.0344***

 

(0.00992)

(0.529)

(0.542)

(0.00884)

(0.00924)

Interaction of windfall gains with married dummy

−0.0251***

−0.735

−0.758

−0.00908

−0.0100

(0.00904)

(0.485)

(0.494)

(0.00824)

(0.00850)

Children 0–6 in hhold dummy

−0.0152*

−0.328

−0.726

0.0130*

0.00975

 

(0.00897)

(0.479)

(0.488)

(0.00790)

(0.00817)

Interaction of windfall gains with children 0–6 dummy

−0.0214**

−1.235**

−0.893*

−0.0224***

−0.0210**

(0.00955)

(0.510)

(0.519)

(0.00845)

(0.00881)

Children 7–15 in hhold dummy

−0.0321***

−1.285***

−1.408***

0.00313

0.00272

 

(0.00839)

(0.448)

(0.455)

(0.00749)

(0.00770)

Interaction of windfall gains with children 7–15 dummy

−0.000463

−0.112

0.0145

−0.0125

−0.0105

(0.00939)

(0.502)

(0.507)

(0.00834)

(0.00855)

Constant

−0.807***

−49.14***

−44.71***

3.053***

3.198***

 

(0.0951)

(5.093)

(5.583)

(0.0887)

(0.0976)

Observations

26176

25626

25327

22503

22278

Number of individuals

5087

5073

5061

4691

4679

R-squared

0.045

0.072

 

0.141

 

Hausman test+

  

0.001

 

0.048

  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.