# **Table 3: Firms’ characteristics and perception of strictness of labor regulations** **<u>(Marginal effects from Generalized Ordered Logit Model)</u>**

||W|BES|||IC|S|||
|---|---|---|---|---|---|---|---|---|
||_No_<br>_obstacle_|_Major_<br>_obstacle_|_No_<br>_obstacle_|_Major_<br>_obstacle_|_No_<br>_obstacle_|_Major_<br>_obstacle_|_No_<br>_obstacle_|_Major_<br>_obstacle_|
|_Age (Less than 5 years old)_|||||||||
|5 to 15 years old<br>16 or more|-0.035*<br>(0.014<br>-0.069**|0.004<br>(0.003)<br>0.011+|-0.018<br>(0.012)<br>0.005|0.005**<br>(0.002)<br>0.009**|-0.012<br>(0.012)<br>0.018|0.004**<br>(0.001)<br>0.007*|-0.019<br>(0.014)<br>0.011|0.006*<br>(0.003)<br>0.010**|
||(0.019|(0.006)|(0.020)|(0.003)|(0.020)|(0.003)|(0.022)|(0.004)|
|Ownership (Public)|0.059**<br>(0.017|-0.010**<br>(0.003)|0.022<br>(0.021)|-0.008**<br>(0.002)|0.012<br>(0.022)|-0.007**<br>(0.002)|0.029<br>(0.024)|-0.011**<br>(0.003)|
|_Size (Less than 20 employe_|_es)_||||||||
|<br>20 to 100 employees|<br>-0.081**|0.015**|-0.095**|0.014**|-0.071**|0.011**|-0.096**|0.017**|
||(0.021)|(0.004)|(0.023)|(0.003)|(0.022)|(0.003)|(0.023)|(0.004)|
|More<br>than<br>100<br>employees|<br>-0.106**|<br>0.004|<br>-0.177**|<br>0.020**|<br>-0.156**|<br>0.016**|<br>-0.178**|<br>0.023**|
||(0.027)|(0.004)|(0.027)|(0.005)|(0.027)|(0.004)|(0.027)|(0.005)|
|_Region (ECA)_|||||||||
|<br>SSA|-0.312**<br>(0.067)|0.046+<br>(0.026)|-0.125<br>(0.094)|0.049+<br>(0.025)|-0.230**<br>(0.060)|0.042*<br>(0.017)|-0.141<br>(0.093)|0.057*<br>(0.028)|
|EAP|<br>-0.112|<br>0.017|<br>-0.185**|<br>0.055**|<br>-0.175**|<br>0.044**|<br>-0.192**|<br>0.064**|
|INL|(0.076)<br>-0.164*<br>(0.080)|(0.016)<br>0.048*<br>(0.023)|(0.056)|(0.012)|(0.057)|(0.010)|(0.056)|(0.014)|
|LAC|<br>-0.21**|<br>0.056*|-0.192|0.107*|-0.154|0.076+|-0.206|0.128*|
||(0.057)|(0.026)|(0.128)|(0.054)|(0.117)|(0.040)|(0.128)|(0.063)|
|MENA|-0.012|-0.008|-0.085**|0.023**|||-0.094**|0.028**|
||(0.139)|(0.010)|(0.032)|(0.006)|||(0.034|(0.007)|
|SAS|-0.529**|0.173**|-0.272**|0.057*|||-0.291**|0.070*|
||(0.033)|(0.058)|(0.064)|(0.027)|||(0.062)|(0.032)|
|_Country income level (Low_|<br>_)_||||||||
|Lower Middle|-0.193**<br>(0.062)|0.040+<br>(0.021)|-0.121*<br>(0.057)|0.021<br>(0.014)|-0.124*<br>(0.054)|0.018<br>(0.012)|-0.126*<br>(0.059)|0.023<br>(0.016)|
|Upper Middle or high<br>Innovator|<br>-0.211**<br>(0.065)|<br>0.031<br>(0.020)|<br>-0.243**<br>(0.086)|<br>0.046<br>(0.033)|<br>-0.238**<br>(0.084)<br>-0.076**<br>(0.015)|<br>0.039<br>(0.027)<br>0.007**<br>(0.002)|<br>-0.246**<br>(0.085)|<br>0.053<br>(0.038)|
|Expanded employment|||||||0.047**<br>(0.011)|-0.005**<br>(0.001)|
|Observations<br>|9070|9070|17461|17461|14043|14043|17140|17140|
|(number of countries<sup>31</sup>)|(81)|(81)|(47)|(47)|(39)|(39)|(47)|(47)|
|Predicted probability at<br>the mean|0.335|0.141|0.441|0.161|0.440|0.169|0.440|0.161|

Robust standard errors in parentheses, Where relevant, base categories of dummies are indicated in parentheses in italics. + significant at 10%, * significant at 5%, ** significant at 1%. All estimations control for country clustering. Innovator = Upgraded or created product line. ECA = Eastern Europe and Central Asia; SSA, Sub-Saharan Africa; EAP = East Asia and the Pacific; INL = Industrial countries; LAC = Latin America and the Caribbean; MENA = Middle East and North Africa; SAS = South Asia.

> 31 Lists of countries are reported in Annex 2 for all the samples in all tables.

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