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Spatial Dependence in the Cyclical Sensitivity of Labour Supply: An Analysis at the Regional Level in Ecuador

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  • Ángel Maridueña-Larrea

    (Facultad de CC. Sociales, Educación Comercial y Derecho, Universidad Estatal de Milagro, Av. Principal vía al km 26 km 1.5, Milagro 091706, Ecuador
    Facultad de Ciencias Económicas y Empresariales, Universidad de Valladolid, Av. Valle de Esgueva, 6, 47011 Valladolid, Spain)

  • Ángel Martín-Román

    (Facultad de CC. Sociales, Jurídicas y de la Comunicación, Universidad de Valladolid, Plaza de la Universidad, 1, 40005 Segovia, Spain)

Abstract

The labour supply has historically been subject to influence from the economic cycle. On the other hand, there is a paucity of research in the Latin American region examining the impact of social factors on labour participation in diverse contexts. This study examines the spatial dependence of the cyclical sensitivity of labour supply in 23 provinces of Ecuador. A time series analysis was conducted to calculate the cyclical sensitivities of labour supply, and spatial econometric techniques were applied to assess spatial dependence using monthly data for the period 2021 to 2024. We found evidence of a positive and significant spatial dependence in the cyclical sensitivity of labour supply. Our findings suggest that labour decisions in one province are influenced by those in neighbouring provinces, thereby providing a framework for the design of public policies that take into account these interdependencies.

Suggested Citation

  • Ángel Maridueña-Larrea & Ángel Martín-Román, 2024. "Spatial Dependence in the Cyclical Sensitivity of Labour Supply: An Analysis at the Regional Level in Ecuador," Economies, MDPI, vol. 12(12), pages 1-28, December.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:12:p:353-:d:1548913
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    References listed on IDEAS

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    3. Congregado, Emilio & Carmona, Monica & Golpe, Antonio A. & Van Stel, André, 2014. "Unemployment, Gender and Labor Force Participation in Spain: Future Trends in Labor Market," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 53-66, March.
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