Microeconomic Determinants of Underemployment and Unemployment in Ecuador 2019–2022

Diego Linthon-Delgado, Lizethe Méndez-Heras and Francisco Venegas-Martínez
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Diego Linthon-Delgado: Universidad de Guayaquil, Ecuador
Lizethe Méndez-Heras: Universidad ECOTEC, Ecuador
Francisco Venegas-Martínez: Instituto Politécnico Nacional, México
Authors registered in the RePEc Author Service: Lizethe Berenice Mendez Heras and Francisco Venegas-Martínez

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 6, 153-163

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.

Keywords: Discrete Regression Models; Unemployment; Employment; Human Capital (search for similar items in EconPapers)
JEL-codes: C25 E24 J21 J24 J28 O54 (search for similar items in EconPapers)
Date: 2024
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