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Table 3 Firm level determinants of employment growth in the service sector.

From: What drives the dynamics of employment growth in firms? Evidence from East Africa

Variables

Model (1)

Model (2)

Model (3)

Model (4)

Firm specific factors

    

 Firm age

− 0.000 (0.000)

− 0.001*** (0.000)

− 0.001** (0.000)

− 0.001*** (0.000)

 ln age squared

− 0.027 (0.021)

− 0.027* (0.016)

− 0.028* (0.016)

 

Size (small = base category)

 Medium

0.021* (0.012)

   

 Large

0.036** (0.015)

   

Ownership (domestic = base category)

 Foreign ownership

0.018 (0.014)

− 0.010 (0.014)

− 0.005 (0.014)

− 0.007 (0.014)

 Use website (1 = yes)

0.006 (0.011)

0.001 (0.010)

− 0.004 (0.010)

− 0.000 (0.010)

 Innovation (1 = yes)

0.018 (0.011)

0.001 (0.009)

 

0.001 (0.009)

Business environment factors

 Courts (1 = yes)

− 0.011 (0.012)

− 0.013 (0.009)

− 0.014 (0.009)

− 0.015* (0.009)

 Electricity (1 = yes)

− 0.007 (0.015)

− 0.019* (0.010)

− 0.019* (0.010)

 

 Informal payments

− 0.000 (0.001)

 

− 0.002*** (0.001)

− 0.002*** (0.001)

 Access to finance (2 = no)

0.015 (0.011)

0.024** (0.010)

 

0.023** (0.010)

 Business licensing (1 = yes)

− 0.002 (0.012)

0.009 (0.009)

0.009 (0.009)

0.007 (0.009)

 Competition (1 = yes)

0.017* (0.011)

0.001 (0.009)

0.001 (0.009)

− 0.000 (0.009)

Entrepreneur specific factors

    

 Managerial experience

− 0.005 (0.013)

0.010 (0.009)

0.008 (0.009)

0.011 (0.009)

 Gender (1 = female)

− 0.011 (0.015)

− 0.020* (0.011)

− 0.022** (0.011)

− 0.019* (0.011)

 Formal training (1 = yes)

− 0.020* (0.011)

− 0.001 (0.009)

0.001 (0.009)

0.001 (0.009)

Interactions

 Small X informal payments

 

− 0.003*** (0.001)

  

 Medium X informal payments

 

− 0.001 (0.001)

  

 Large X informal payments

 

0.000 (0.005)

  

 Small X access to finance

  

0.008 (0.012)

 

 Medium X access to finance

  

0.044*** (0.015)

 

 Large X access to finance

  

0.125*** (0.024)

 

 Small X electricity obstacle

   

(0.000) 0.034*

 Medium X electricity obstacle

   

(0.032) − 0.008

 Large X electricity obstacle

   

(0.014) 0.050**

 Constant

0.138 (0.099)

0.155** (0.072)

0.169** (0.072)

0.007 (0.021)

 Country specific effect

Yes

Yes

Yes

Yes

 Observations

559

741

758

741

 R2

0.054

0.103

0.104

0.112

  1. Standard errors in parentheses; *** p < 0.01, ** p < 0.05, * p < 0.1