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Microeconomic Determinants of Underemployment and Unemployment in Ecuador 2019–2022

Author

Listed:
  • Diego Linthon-Delgado

    (Universidad de Guayaquil, Ecuador)

  • Lizethe Méndez-Heras

    (Universidad ECOTEC, Ecuador)

  • Francisco Venegas-Martínez

    (Instituto Politécnico Nacional, México)

Abstract

The aim of this paper is to identify the microeconomic determinants of underemployment and unemployment in Ecuador before and after COVID-19. A multinomial logit model was estimated on the accumulated data from the National Employment, Unemployment and Underemployment Survey (ENEMDU) for 2019 and 2022. The results show that the average worker has a 59% probability of being in an adequate job, 35% of being underemployed and 6% of being unemployed. These probabilities change significantly depending on the worker's education and experience. In addition, significant differences were evident by gender, ethnicity, role in the home, and marital status. These differences increased after COVID-19. Thus, underemployment and unemployment promote labor inequality in Ecuador. Based on the results, the public policy should be aimed at reducing economic and opportunity inequalities because vulnerable groups were identified in the labor market.

Suggested Citation

  • Diego Linthon-Delgado & Lizethe Méndez-Heras & Francisco Venegas-Martínez, 2024. "Microeconomic Determinants of Underemployment and Unemployment in Ecuador 2019–2022," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 14(6), pages 153-163, October.
    • Handle: RePEc:eco:journ1:2024-06-17
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    References listed on IDEAS

    as
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    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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