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Wages differentials in Ecuador: A regional approach with sample selection of Heckman and Oaxaca-Blinder decomposition

Alvarado, Rafael (2012): Wages differentials in Ecuador: A regional approach with sample selection of Heckman and Oaxaca-Blinder decomposition.

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Abstract

This paper estimates and decomposes wage differentials in Ecuador. Is corrected by self-selection bias with the two-step methodology proposed by Heckman (1979) and Oaxaca-Blinder decomposition (1973) is checked whether the differences found are due to the initial endowment of human capital or potential discrimination. On the other hand, examines the influence of geography and ethnicity in the level of wages. The data used are from the Survey of Income and Expenses of the National Institute of Statistics and Censuses (INEC, 2009). Through decomposition is verified that the gender wage gap for men, job security for those with contract labor and marital status for married people are due to unobserved factors. While the ethnic wage gap by geographical area, natural areas and by economic sector are due to differences in the initial endowment of human capital.

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