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Ethnic and Gender Wage Gaps in Ecuador

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  • Lourdes Gallardo
  • Hugo Nopo

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.

Suggested Citation

  • Lourdes Gallardo & Hugo Nopo, 2009. "Ethnic and Gender Wage Gaps in Ecuador," Research Department Publications 4625, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4625
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    References listed on IDEAS

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    1. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    2. 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.
    3. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
    4. Alejandro Gaviria, 2006. "Movilidad Social Y Preferencias Por Redistribución En América Latina," Documentos CEDE 3261, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Lund, Frances & Duryea, Suzanne & Puentes, Esteban & Morrison, Andrew & Tenjo Galarza, Jaime & Ureta, Manuelita & Contreras, Dante & Cox Edwards, Alejandra & Deutsch, Ruthanne & Ribero Medina, Rocío &, 2006. "Women at Work: Challenges for Latin America," IDB Publications (Books), Inter-American Development Bank, number 424, November.
    6. Thorp, Rosemary, 1998. "Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century," IDB Publications (Books), Inter-American Development Bank, number 412, November.
    7. Rosemary Thorp, 1998. "Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century," IDB Publications (Books), Inter-American Development Bank, number 79303, February.
    8. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    9. Nopo, Hugo R. & Saavedra, Jaime & Torero, Maximo, 2004. "Ethnicity and Earnings in Urban Peru," IZA Discussion Papers 980, Institute of Labor Economics (IZA).
    10. World Bank, 2004. "Ecuador : Poverty Assessment," World Bank Publications - Reports 14593, The World Bank Group.
    11. Garcia-Aracil, Adela & Winter, Carolyn, 2006. "Gender and ethnicity differentials in school attainment and labor market earnings in Ecuador," World Development, Elsevier, vol. 34(2), pages 289-307, February.
    12. 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.
    13. Salvanes, Kjell G & Black, Sandra & Devereux, Paul J., 2003. "Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital," CEPR Discussion Papers 4150, C.E.P.R. Discussion Papers.
    14. 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.
    15. 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.
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    Cited by:

    1. Chiara Falco, 2015. "Education and migration: empirical evidence from Ecuador," Working Papers 297, University of Milano-Bicocca, Department of Economics, revised Mar 2015.
    2. Anglade, Boaz & Useche, Pilar & Deere, Carmen Diana, 2017. "Decomposing the Gender Wealth Gap in Ecuador," World Development, Elsevier, vol. 96(C), pages 19-31.
    3. Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, José Alberto, 2015. "Gender differences in the distribution of total work-time of Latin- American families: the importance of social norms," MPRA Paper 62759, University Library of Munich, Germany.
    4. Peterman, Amber & Schwab, Benjamin & Roy, Shalini & Hidrobo, Melissa & Gilligan, Daniel, 2015. "Measuring women’s decisionmaking: Indicator choice and survey design experiments from cash and food transfer evaluations in Ecuador, Uganda, and Yemen:," IFPRI discussion papers 1453, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Matching; Non-parametric; Wage Gaps; Gender; Ethnicity; Latin America;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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