<table><caption>Table B.12: Full sample: OLS results, country fixed effects, region-year fixed effects</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>Minimum Wage Shock 30% (t-1 or t-2)</td><td>0.270**<br>(0.088)</td><td>0.066*<br>(0.028)</td><td>-0.046<br>(0.131)</td><td>-0.090<br>(0.134)</td></tr><tr><td># Obs.</td><td>33,675</td><td>33,675</td><td>33,675</td><td>33,675</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.332</td><td>0.267</td><td>0.324</td><td>0.273</td></tr><tr><td>% Treated Obs.</td><td>17.363</td><td>17.363</td><td>17.363</td><td>17.363</td></tr><tr><td># Countries</td><td>43</td><td>43</td><td>43</td><td>43</td></tr><tr><td>Sample</td><td>Full</td><td>Full</td><td>Full</td><td>Full</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Region x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001

## B.5 *Neighboring-country strategy results*

Tables B.12 and B.13 report the results adding Region x Year fixed effects for the full sample and panel sample (and firms fixed effects) respectively. Tables B.14 and B.15 report the results for the panel sample (i.e. only panel firms) and the panel countries sample (i.e. countries for which we have panel firms) when including region-year fixed effects.
<table><caption>Table B.13: Panel sample: OLS results, firm fixed effects, region-year fixed effects</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>Minimum Wage Shock 30% (t-1 or t-2)</td><td>0.866***<br>(0.205)</td><td>-0.003<br>(0.051)</td><td>0.161<br>(0.180)</td><td>0.171<br>(0.176)</td></tr><tr><td># Obs.</td><td>8,317</td><td>8,317</td><td>8,317</td><td>8,317</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.395</td><td>0.735</td><td>0.653</td><td>0.419</td></tr><tr><td>% Treated Obs.</td><td>27.750</td><td>27.750</td><td>27.750</td><td>27.750</td></tr><tr><td># Countries</td><td>27</td><td>27</td><td>27</td><td>27</td></tr><tr><td>Sample</td><td>Panel</td><td>Panel</td><td>Panel</td><td>Panel</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Region x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001

<table><caption>Table B.14: Panel sample: OLS results, country fixed effects, region-year fixed effects</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>Minimum Wage Shock 30% (t-1 or t-2)</td><td>0.739*<br>(0.298)</td><td>0.253<br>(0.167)</td><td>0.215<br>(0.447)</td><td>-0.101<br>(0.257)</td></tr><tr><td># Obs.</td><td>8,317</td><td>8,317</td><td>8,317</td><td>8,317</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.314</td><td>0.253</td><td>0.310</td><td>0.246</td></tr><tr><td>% Treated Obs.</td><td>27.750</td><td>27.750</td><td>27.750</td><td>27.750</td></tr><tr><td># Countries</td><td>27</td><td>27</td><td>27</td><td>27</td></tr><tr><td>Sample</td><td>Panel</td><td>Panel</td><td>Panel</td><td>Panel</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Region x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001
<table><caption>Table B.15: Panel countries full sample: OLS results, country fixed effects, region-year fixed effects</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>Minimum Wage Shock 30% (t-1 or t-2)</td><td>0.736***<br>(0.189)</td><td>0.438***<br>(0.054)</td><td>0.381*<br>(0.154)</td><td>-0.084<br>(0.156)</td></tr><tr><td># Obs.</td><td>26,230</td><td>26,230</td><td>26,230</td><td>26,230</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.317</td><td>0.272</td><td>0.304</td><td>0.243</td></tr><tr><td>% Treated Obs.</td><td>22.291</td><td>22.291</td><td>22.291</td><td>22.291</td></tr><tr><td># Countries</td><td>27</td><td>27</td><td>27</td><td>27</td></tr><tr><td>Sample</td><td>Full-<br>Panel</td><td>Full-<br>Panel</td><td>Full-<br>Panel</td><td>Full-<br>Panel</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Region x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001
## B.6 Heterogeneity by Market Potential

<table><caption>Table B.16: Full sample: Effects of Minimum Wage Shock by Market Potential</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>MW Shock 30% in Small Market</td><td>-0.207<br>(0.268)</td><td>-0.232<br>(0.163)</td><td>-0.532<br>(0.358)</td><td>-0.281<br>(0.250)</td></tr><tr><td>MW Shock 30% in Medium Market</td><td>0.254<br>(0.173)</td><td>-0.040<br>(0.092)</td><td>-0.064<br>(0.282)</td><td>-0.025<br>(0.219)</td></tr><tr><td>MW Shock 30% in Large Market</td><td>0.176<br>(0.222)</td><td>0.131<br>(0.132)</td><td>0.323<br>(0.353)</td><td>0.160<br>(0.249)</td></tr><tr><td># Obs.</td><td>24,038</td><td>24,038</td><td>24,038</td><td>24,038</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.316</td><td>0.265</td><td>0.321</td><td>0.268</td></tr><tr><td>% Treated Obs.</td><td>18.629</td><td>18.629</td><td>18.629</td><td>18.629</td></tr><tr><td># Countries</td><td>42</td><td>42</td><td>42</td><td>42</td></tr><tr><td>Sample</td><td>Full</td><td>Full</td><td>Full</td><td>Full</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Region x Year FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr></tbody></table>

Source: The World Bank (2021); Li et al. (2020), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001
## B.7 Heterogeneity by Sector

<table><caption>Table B.17: Full sample: Effects of Minimum Wage Shock by Sector</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>MW Shock 30% in Service Sector</td><td>0.406*<br>(0.176)</td><td>0.038<br>(0.105)</td><td>0.253<br>(0.329)</td><td>0.208<br>(0.249)</td></tr><tr><td>MW Shock 30% in Manufacturing Sector</td><td>0.307†<br>(0.164)</td><td>0.056<br>(0.106)</td><td>0.264<br>(0.329)</td><td>0.200<br>(0.250)</td></tr><tr><td># Obs.</td><td>33,675</td><td>33,675</td><td>33,675</td><td>33,675</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.319</td><td>0.261</td><td>0.315</td><td>0.264</td></tr><tr><td>% Treated Obs.</td><td>17.363</td><td>17.363</td><td>17.363</td><td>17.363</td></tr><tr><td># Countries</td><td>43</td><td>43</td><td>43</td><td>43</td></tr><tr><td>Sample</td><td>Full</td><td>Full</td><td>Full</td><td>Full</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Region x Year FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001
<table><caption>Table B.18: Panel sample: Effects of Minimum Wage Shock by Sector</caption><thead><tr><th></th><th>(1)<br>Labour costs p/w</th><th>(2)<br>Permanent employment</th><th>(3)<br>Sales</th><th>(4)<br>Sales p/w</th></tr></thead><tbody><tr><td>MW Shock 30% in Service Sector</td><td>0.715***<br>(0.184)</td><td>-0.058<br>(0.078)</td><td>0.483**<br>(0.158)</td><td>0.541***<br>(0.127)</td></tr><tr><td>MW Shock 30% in Manufacturing Sector</td><td>0.611***<br>(0.159)</td><td>0.117<br>(0.091)</td><td>0.683***<br>(0.179)</td><td>0.569**<br>(0.180)</td></tr><tr><td># Obs.</td><td>8,317</td><td>8,317</td><td>8,317</td><td>8,317</td></tr><tr><td>Adj. R<sup>2</sup></td><td>0.383</td><td>0.732</td><td>0.648</td><td>0.414</td></tr><tr><td>% Treated Obs.</td><td>27.750</td><td>27.750</td><td>27.750</td><td>27.750</td></tr><tr><td># Countries</td><td>27</td><td>27</td><td>27</td><td>27</td></tr><tr><td>Sample</td><td>Panel</td><td>Panel</td><td>Panel</td><td>Panel</td></tr><tr><td>Firms' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Countries' Controls</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Country FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr><tr><td>Sector x Year FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Firm FE</td><td>Yes</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td>Region x Year FE</td><td>No</td><td>No</td><td>No</td><td>No</td></tr></tbody></table>

Source: The World Bank (2021), calculations by the authors. Note: Robust standard errors in parentheses, clustered at the country level. † p<0.1 * p<0.05 ** p<0.01 *** p<0.001