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Determinants of Hourly Earnings in Ecuador: The Role of Labor Market Regulations

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  • MacIsaac, Donna
  • Rama, Martin

Abstract

Ecuadorian labor costs are said to be high because of the existence of many mandated benefits. Using the 1994 Living Standards Measurement Survey, the authors show that the effect of these benefits is actually mitigated by a reduction of base earnings, that is, of the foundation on which they are paid. The reduction is larger in the private than in the public sector and is negligible for unionized workers. The authors also show that, in spite of mandated benefits, interindustry wage differentials are comparable to those of Bolivia, a country characterized by 'flexible' labor markets but otherwise similar to Ecuador. Copyright 1997 by University of Chicago Press.

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  • 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 136-165, July.
    • Handle: RePEc:ucp:jlabec:v:15:y:1997:i:3:p:s136-65
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    2. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
    3. Claudia Goldin & Robert A. Margo, 1992. "The Great Compression: The Wage Structure in the United States at Mid-Century," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 1-34.
    4. Finis Welch, 1969. "Linear Synthesis of Skill Distribution," Journal of Human Resources, University of Wisconsin Press, vol. 4(3), pages 311-327.
    5. repec:bla:econom:v:45:y:1978:i:179:p:235-50 is not listed on IDEAS
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