**Table 8. Earnings Regressions by Education Level (anchor 2006q2, panel 2005q3–2007q1)** _-_ _<u>excluded firm size [0 5]</u>_

||**_(1)_**<br>**_Inc Prim_**|**_(2)_**<br>**_Com Prim_**|**_(3)_**<br>**_Inc JH _**|**_(4)_**<br>**_Com JH _**|**_(5)_**<br>**_Inc SH _**|**_(6)_**<br>**_Com SH _**|**_(7)_**<br>**_Univ_**|
|---|---|---|---|---|---|---|---|
|**Age**|0.0368<sup>***</sup><br>(52.19)|0.0382<sup>***</sup><br>(89.27)|0.103<sup>***</sup><br>(62.00)|0.0143<sup>***</sup><br>(47.15)|0.0688<sup>***</sup><br>(127.57)|0.000694<br>(1.21)|0.0431<sup>***</sup><br>(101.47)|
|**Age * age**|−0.000539<sup>***</sup><br>(−66.80)|−0.000496<sup>***</sup><br>(−94.28)|−0.00131<sup>***</sup><br>(−54.43)|−0.000137<sup>***</sup><br>(−32.66)|−0.000890<sup>***</sup><br>(−127.02)|0.000164<sup>***</sup><br>(21.20)|−0.000480<sup>***</sup><br>(−91.35)|
|**6 - 10 Workers**|0.108<sup>***</sup>|0.0482<sup>***</sup>|−0.0593<sup>***</sup>|0.0197<sup>***</sup>|0.0884<sup>***</sup>|0.0870<sup>***</sup>|0.0695<sup>***</sup>|
||(85.39)|(53.04)|(−42.03)|(26.54)|(71.11)|(62.12)|(48.52)|
|**11 - 50 Workers**|<br>0.130<sup>***</sup>|<br>0.0569<sup>***</sup>|<br>0.0883<sup>***</sup>|<br>−0.00508<sup>***</sup>|<br>0.108<sup>***</sup>|<br>0.0217<sup>***</sup>|<br>0.156<sup>***</sup>|
||(99.33)|(58.84)|(49.80)|(−6.54)|(89.70)|(15.15)|(112.40)|
|**51+ Workers**|<br>0.0432<sup>***</sup><br>(19.62)|<br>−0.0169<sup>***</sup><br>(−10.64)|<br>0.198<sup>***</sup><br>(66.22)|<br>0.0122<sup>***</sup><br>(10.36)|<br>0.0918<sup>***</sup><br>(58.02)|<br>0.00625<sup>***</sup><br>(3.34)|<br>0.212<sup>***</sup><br>(134.81)|
|**Written Contract**|<br>−0.0884<sup>***</sup>|<br>0.00702<sup>***</sup>|<br>−0.0516<sup>***</sup>|<br>0.0467<sup>***</sup>|<br>0.0503<sup>***</sup>|<br>0.0992<sup>***</sup>|<br>0.0844<sup>***</sup>|
||(−43.03)|(6.41)|(−28.32)|(57.39)|(46.10)|(74.71)|(79.84)|
|**Formal**|<br>0.00577<sup>***</sup>|<br>0.0128<sup>***</sup>|<br>−0.00382<sup>*</sup>|<br>0.0477<sup>***</sup>|<br>0.0857<sup>***</sup>|<br>0.0371<sup>***</sup>|<br>0.126<sup>***</sup>|
||(4.11)|(13.92)|(−2.05)|(61.16)|(72.43)|(26.41)|(84.73)|
|**Formal * Contract**|<br>0.117<sup>***</sup>|<br>−0.0124<sup>***</sup>|<br>0.0765<sup>***</sup>|<br>−0.0422<sup>***</sup>|<br>−0.0319<sup>***</sup>|<br>−0.0707<sup>***</sup>|<br>−0.0143<sup>***</sup>|
||(51.68)|(−10.08)|(35.33)|(−44.97)|(−25.03)|(−45.62)|(−11.02)|
|**Formal * [6–10]**|<br>−0.0310<sup>***</sup>|<br>−0.0610<sup>***</sup>|<br>0.0550<sup>***</sup>|<br>−0.0216<sup>***</sup>|<br>−0.0455<sup>***</sup>|<br>−0.0256<sup>***</sup>|<br>0.00335|
||(−15.71)|(−46.88)|(24.57)|(−20.30)|(−29.67)|(−14.60)|(1.88)|
|**Formal * [11–50]**|−0.0756<sup>***</sup>|−0.0666<sup>***</sup>|−0.0674<sup>***</sup>|0.0530<sup>***</sup>|−0.0300<sup>***</sup>|0.0704<sup>***</sup>|−0.0215<sup>***</sup>|
||(−40.64)|(−54.07)|(−28.29)|(52.39)|(−20.92)|(41.86)|(−12.98)|
|**Formal * [51+]**|<br>0.0378<sup>***</sup>|<br>0.0492<sup>***</sup>|<br>−0.156<sup>***</sup>|<br>0.0432<sup>***</sup>|<br>−0.0158<sup>***</sup>|<br>0.125<sup>***</sup>|<br>−0.00584<sup>**</sup>|
||(14.81)|(27.87)|(−45.48)|(32.27)|(−9.17)|(60.57)|(−3.27)|
|Observations|1453795|3991436|1090511|7354974|5005826|4181318|7057757|
|Adjusted_R_<sup>2</sup>|0.746|0.718|0.755|0.708|0.733|0.746|0.704|
|Controls|Munic|Munic|Munic|Munic|Munic|Munic|Munic|

_Source:_ Authors’ analysis based on Economic Census and data from Encuesta Nacional de Ocupación y Empleo and Encuesta Nacional de Empleo. _Note: t_ statistics in parentheses;<sup>*</sup> _p_ < 0.05,<sup>**</sup> _p_ < 0.01,<sup>***</sup> _p_ < 0.001.

The contrasts across educational levels are sharp. For workers with incomplete primary education, the effect on earnings of being employed by larger firms compared with small ones [0–5] is small; the difference with being employed in a small [6–10], medium [ 11-50] or large [50+] one is 7.7 percent, 5.4 percent, and 8.1 percent, respectively (and, in the last case, not statistically significant). This is in contrast with workers with university education: relative to small firms, the difference of being employed by a small, medium, or large firm is 7.3 percent, 13.4 percent, and 20.6 percent, respectively. Comparable results hold contrasting workers with completed primary education with those that have completed high school: for the former, the difference between working for a large firm relative to a small one is 3.2 percent; for the latter, 13.1. More generally, there is a premium be to match employer-employee data over time, which is not available for Mexico. The magnitude of this bias, if any -particularly in terms of its relative importance across educational levels- should not affect the counterfactual exercise.

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