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Minimum Wage and Informality in Ecuador

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  • Carla Canelas

Abstract

This paper investigates if changes in the minimum wage have influenced changes on the formality and informality rates, and the level of wages in Ecuador. A 12-year panel was built. It allows to overcome the short time span of household data and so to characterize changes over time. Results suggest that the minimum wage has virtually no effect on employment and wages.

Suggested Citation

  • Carla Canelas, 2014. "Minimum Wage and Informality in Ecuador," WIDER Working Paper Series wp-2014-006, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-006
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-006.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jaerim Choi & Ivan Rivadeneyra & Kenia Ramirez, 2021. "Labor Market Effects of a Minimum Wage: Evidence from Ecuadorian Monthly Administrative Data," CESifo Working Paper Series 8987, CESifo.
    2. Sara Wong, 2017. "Minimum wage impacts on wages and hours worked of low-income workers in Ecuador," Working Papers PMMA 2017-14, PEP-PMMA.
    3. Carla Canelas, 2019. "Informality and poverty in Ecuador," Small Business Economics, Springer, vol. 53(4), pages 1097-1115, December.
    4. Adu-Ababio, Kwabena, 2024. "Microsimulation approaches to studying shocks and social protection in selected developing economies," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1552-1576.
    5. Nuria Ceular-Villamandos & Virginia Navajas-Romero & Lorena Caridad y López del Río & Lucia Zita Zambrano-Santos, 2021. "Workplace Situation and Well-Being of Ecuadorian Self-Employed," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    6. Bohne, Albrecht & Nimczik, Jan Sebastian, 2018. "Information Frictions and Learning Dynamics: Evidence from Tax Avoidance in Ecuador," IZA Discussion Papers 11536, Institute of Labor Economics (IZA).

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    Keywords

    Informal sector; Labour market; Labour supply; Wages;
    All these keywords.

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