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Ethnic and Gender Wage Gaps in Ecuador

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  • Lourdes Gallardo
  • Hugo Nopo

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Abstract

Returns to labor for workers with similar endowments of productive characteristics in Ecuador are influenced by two characteristics that, arguably, should play no role on the determination of wages: gender and ethnicity. This paper analyzes wage gaps due to both characteristics in Ecuador for the period 2003-2007, applying a matching comparisons technique developed in Ñopo (2008). The results indicate ethnic wage gaps that are notably higher than gender wage gaps. Furthermore, ethnic wage gaps are higher among males than among females. Differences in human capital characteristics, however, explain almost one-half of the ethnic wage gaps but only a small fraction of the gender wage gaps. Both gender and ethnic wage gaps are more pronounced at the lower extremes of the earnings distribution.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4625.

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Date of creation: Apr 2009
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Handle: RePEc:idb:wpaper:4625

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Keywords: Matching; Non-parametric; Wage Gaps; Gender; Ethnicity; Latin America;

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  1. MacIsaac, Donna & Rama, Martin, 1997. "Determinants of Hourly Earnings in Ecuador: The Role of Labor Market Regulations," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S136-65, July.
  2. Wendy Cunningham & Joyce P. Jacobsen, 2003. "Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Latin America," Wesleyan Economics Working Papers 2003-001, Wesleyan University, Department of Economics.
  3. Hugo Nopo, 2003. "Matching as a Tool to Decompose Wage Gaps," Middlebury College Working Paper Series 0406, Middlebury College, Department of Economics.
  4. Nopo, Hugo & Saavedra, Jaime & Torero, Maximo, 2004. "Ethnicity and Earnings in Urban Peru," IZA Discussion Papers 980, Institute for the Study of Labor (IZA).
  5. Ximena Soruco & Giorgina Piani & Máximo Rossi, 2008. "What Emigration Leaves Behind: The Situation of Emigrants and their Families in Ecuador," Research Department Publications 3244, Inter-American Development Bank, Research Department.
  6. Alejandro Gaviria, 2006. "Movilidad Social Y Preferencias Por Redistribución En América Latina," DOCUMENTOS CEDE 003261, UNIVERSIDAD DE LOS ANDES-CEDE.
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