IDEAS home Printed from https://ideas.repec.org/p/aly/journl/202302.html
   My bibliography  Save this paper

Labor income gap in Ecuador due to discrimination, pre and post pandemic: Correction of error due to selection bias

Author

Listed:
  • Marcelo Varela Enríquez

    (Doctor (PHD) in Social Sciences specialized in Applied Economics, University of Salamanca. Dean of the School of Public Economics and Strategic Sectors at the Institute of Higher National Studies, and Principal Professor at the Central University of Ecuador, Ecuador)

  • Gustavo Salazar Espinoza

    (Economist, Central University of Ecuador, development economics master, economic research consultant, Equador)

Abstract

The objective of this research is to analyze the labor gap in Ecuador, correcting the session period by sample selection to show if the differences in labor income are due to observable or discriminatory situations, and if they changed after the pandemic. To achieve this objective, the annual employment databases for the years 2018, 2019 and 202 were analyzed, and a model described by Jones (2007) and Adkins and Hill (2011) was initiated, who conclude in the application of the model of Heckman and the failure of the Oaxaca-Blinder method was estimated to correct errors and show possible discrimination in labor income. The results obtained show that it is more difficult for women, young people and ethnic minorities to find work, and when they are in employment their income is lower, even the labor gap between men and women increases after the pandemic. Income gaps are explained by discriminatory factors and observable factors in the case of women and ethnic minorities; while for young people it is due to observable factors.

Suggested Citation

  • Marcelo Varela Enríquez & Gustavo Salazar Espinoza, "undated". "Labor income gap in Ecuador due to discrimination, pre and post pandemic: Correction of error due to selection bias," Review of Socio - Economic Perspectives 202302, Reviewsep.
    • Handle: RePEc:aly:journl:202302
    DOI: https://doi.org/10.19275/RSEP145
    as

    Download full text from publisher

    File URL: https://reviewsep.com/wp-content/uploads/2023/03/2_MARCELO.pdf
    Download Restriction: no
    File URL: https://reviewsep.com/?page_id=2075
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.19275/RSEP145?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," Research Department Publications 4640, Inter-American Development Bank, Research Department.
    2. Hugo Ñopo, 2012. "New Century, Old Disparities : Gender and Ethnic Earnings Gaps in Latin America and the Caribbean," World Bank Publications - Books, The World Bank Group, number 11953, December.
    3. Jones, A., 2007. "Applied Econometrics for Health Economists: A Practical Guide," Monographs, Office of Health Economics, number 000262.
    4. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, September.
    5. Fortin, Nicole M. & Bell, Brian & Böhm, Michael, 2017. "Top earnings inequality and the gender pay gap: Canada, Sweden, and the United Kingdom," Labour Economics, Elsevier, vol. 47(C), pages 107-123.
    6. Jacob Mincer & Solomon Polachek, 1978. "An Exchange: The Theory of Human Capital and the Earnings of Women: Women's Earnings Reexamined," Journal of Human Resources, University of Wisconsin Press, vol. 13(1), pages 118-134.
    7. repec:idb:brikps:6384 is not listed on IDEAS
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    10. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    11. Garcia-Aracil, Adela & Winter, Carolyn, 2006. "Gender and ethnicity differentials in school attainment and labor market earnings in Ecuador," World Development, Elsevier, vol. 34(2), pages 289-307, February.
    12. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 3-10, April.
    13. Maira Colacce, 2018. "¿Cómo se modificarían la pobreza y la desigualdad de ingresos de los hogares si se cierran las brechas de género en el mercado laboral? Un estudio para cuatro países de América Latina," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 81(1), August.
    14. Ted Enamorado & Ana Carolina Izaguirre & Hugo Nopo, 2009. "Gender Wage Gaps in Central American Countries: Evidence from a Non-Parametric Approach," Research Department Publications 4639, Inter-American Development Bank, Research Department.
    15. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    16. Hugo Ñopo, 2012. "New Century, Old Disparities : Gender and Ethnic Earnings Gaps in Latin America and the Caribbean," World Bank Publications, The World Bank, number 11953, September.
    17. Jessica Pan, 2015. "Gender Segregation in Occupations: The Role of Tipping and Social Interactions," Journal of Labor Economics, University of Chicago Press, vol. 33(2), pages 365-408.
    18. repec:idb:brikps:6776 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oscar Molina Tejerina & Luis Castro Peñarrieta, 2020. "Unexplained Wage Gaps in the Tradable and Nontradable Sectors: Cross-Sectional Evidence by Gender in Bolivia," Investigación & Desarrollo 0120, Universidad Privada Boliviana, revised Nov 2020.
    2. Nan L. Maxwell & Nathan Wozny, "undated". "Gender Gaps in Time Use and Earnings: What's Norms Got to Do With It?," Mathematica Policy Research Reports 38f127bf7f494794807db7a3a, Mathematica Policy Research.
    3. Galvis-Aponte, Luis Armando, 2011. "Diferenciales salariales por género y región en Colombia : una aproximación con regresión por cuantiles," Chapters, in: Bonilla-Mejía, Leonardo (ed.), Dimensión regional de las desigualdades en Colombia, chapter 6, pages 209-252, Banco de la Republica de Colombia.
    4. Murat Genc, 2017. "Gender, Ethnicity, and Wages in New Zealand," EcoMod2017 10338, EcoMod.
    5. Anglade, Boaz & Useche, Pilar & Deere, Carmen Diana, 2017. "Decomposing the Gender Wealth Gap in Ecuador," World Development, Elsevier, vol. 96(C), pages 19-31.
    6. Adrián Rubli, 2012. "La importancia de corregir por el sesgo de selección en el análisis de las brechas salariales por género: un estudio para Argentina, Brasil y México," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 1-36, November.
    7. Ian Watson, 2010. "Decomposing the Gender Pay Gap in the Australian Managerial Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(1), pages 49-79.
    8. Taiwo Aderemi & Ibrahim Alley, 2019. "Gender pay gap in the workplace: the case of public and private sectors in Nigeria," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 370-391, December.
    9. Balakarushna Padhi & Udaya S. Mishra & Urmi Pattanayak, 2019. "Gender-Based Wage Discrimination in Indian Urban Labour Market: An Assessment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 361-388, September.
    10. Margarita Kiryushina & Victor Rudakov, 2021. "The Gender Gap in Early-Career Wages of Universities' and Vocational Education Institutes' Graduates," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 172-198.
    11. Steffen Mueller, 2012. "Works Councils and Establishment Productivity," ILR Review, Cornell University, ILR School, vol. 65(4), pages 880-898, October.
    12. Petreski, Marjan. & Mojsoska-Blazevski, Nikica., 2015. "The gender and motherhood wage gap in the Former Yugoslav Republic of Macedonia : an econometric analysis," ILO Working Papers 994895293402676, International Labour Organization.
    13. Geovanny Castro Aristizabal & Marcela Diaz Rosero & Jairo Tobar Bedoya, 2016. "Causas de las diferencias en desempeño escolar entre los colegios públicos y privados: Colombia en las pruebas SABER11 2014," Working Papers 26, Faculty of Economics and Management, Pontificia Universidad Javeriana Cali.
    14. Кирюшина М. А. & Рудаков В. Н., 2021. "Гендерные Различия В Заработной Плате Выпускников Вузов И Учреждений Спо На Начальном Этапе Карьеры," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 172-198.
    15. Vassilis Monastiriotis & Angelo Martelli, 2021. "Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach," International Regional Science Review, , vol. 44(1), pages 85-112, January.
    16. Philippe Adair & Oksana Nezhyvenko, 2020. "Wage Differentials in EU Transition Economies (2009-2016): How Large a Penalty for Females and Informal Employees?," Proceedings of Economics and Finance Conferences 10913129, International Institute of Social and Economic Sciences.
    17. Ferreira, Francisco H. G. & Firpo, Sergio & Messina, Julián, 2017. "Ageing Poorly? Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012," IZA Discussion Papers 10656, Institute of Labor Economics (IZA).
    18. Hansen, Henrik & Rand, John & Win, Ngu Wah, 2022. "The gender wage gap in Myanmar: Adding insult to injury?," Journal of Asian Economics, Elsevier, vol. 81(C).
    19. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    20. Anna Adamecz-Völgyi & Morag Henderson & Nikki Shure, 2023. "The labor market returns to “first-in-family” university graduates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1395-1429, July.

    More about this item

    Keywords

    labor income; labor gap; discriminatory factors; pandemic; youth; ethnic minorities.;
    All these keywords.

    JEL classification:

    • A19 - General Economics and Teaching - - General Economics - - - Other
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aly:journl:202302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Veysel KAYA (email available below). General contact details of provider: https://edirc.repec.org/data/degraus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.