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Table 7 Effects of small/medium/large windfall gains on working hours – 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

Small windfall gains dummy

−0.00104

−0.177

−0.126

0.00557

0.00517

 

(0.00563)

(0.301)

(0.303)

(0.00502)

(0.00515)

Medium windfall gains dummy

−0.00617

0.0221

0.111

0.00139

0.00153

 

(0.00610)

(0.326)

(0.329)

(0.00552)

(0.00566)

Large windfall gains dummy

−0.0306***

−1.337**

−0.966*

−0.0208**

−0.0184*

 

(0.0103)

(0.552)

(0.560)

(0.00927)

(0.00953)

Hourly wage

 

−0.878***

−0.795***

  
  

(0.0360)

(0.219)

  

Log hourly wage

   

−0.368***

−0.196***

    

(0.00704)

(0.0463)

Age

0.0954***

5.191***

5.065***

0.0620***

0.0473***

 

(0.00338)

(0.181)

(0.206)

(0.00323)

(0.00490)

Age^2

−0.00115***

−0.0601***

−0.0592***

−0.000577***

−0.000495***

 

(3.84e-05)

(0.00205)

(0.00209)

(3.69e-05)

(4.23e-05)

Married dummy

0.0199**

2.138***

2.055***

0.0350***

0.0295***

 

(0.00843)

(0.449)

(0.460)

(0.00748)

(0.00784)

Children 0–6 in household dummy

−0.0311***

−1.221***

−1.418***

−6.81e-05

−0.00316

 

(0.00684)

(0.366)

(0.372)

(0.00602)

(0.00625)

Children 7–15 in household dummy

−0.0357***

−1.505***

−1.586***

−0.00606

−0.00580

 

(0.00640)

(0.341)

(0.346)

(0.00566)

(0.00582)

Constant

−0.983***

−60.20***

−57.13***

2.960***

3.075***

 

(0.0730)

(3.914)

(4.333)

(0.0677)

(0.0737)

Observations

26176

25626

25327

22503

22278

Number of individuals

5087

5073

5061

4691

4679

R-squared

0.044

0.070

 

0.141

 

Hausman test+

  

0.000

 

0.034

  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.