Ecuadorian labor market Mauricio Cuesta Zapata September 2019 - - PowerPoint PPT Presentation

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Ecuadorian labor market Mauricio Cuesta Zapata September 2019 - - PowerPoint PPT Presentation

Nov 26, 2023 261 likes β€’381 views

Sex and ethnicity discrimination in the Ecuadorian labor market Mauricio Cuesta Zapata September 2019 Definition discriminatory attitudes, which we will call prejudice, discriminatory outcomes, which we will call discrimination. Prejudice

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Sex and ethnicity discrimination in the Ecuadorian labor market

Mauricio Cuesta Zapata September 2019

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Definition

discriminatory attitudes, which we will call prejudice, discriminatory outcomes, which we will call discrimination.

  • Prejudice: dislike, distaste, or misperception based on innate

characteristics such as race or sex.

  • Discrimination occurs when equals are not being treated equally.

There is an impact on the individual so that the individual has greater difficulty getting a taxi, earns a lower wage, or is

  • therwise hurt by the action
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  • Treating people differently on the basis on the basis of group

membership.

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Human capital theory

  • wage determination based on the statistical earning function:

relates earnings with their underlying characteristics: π‘“π‘π‘ π‘œπ‘—π‘œπ‘•π‘‘ = 𝑔 π‘“π‘’π‘£π‘‘π‘π‘’π‘—π‘π‘œ, 𝑏𝑕𝑓, π‘“π‘¦π‘žπ‘“π‘ π‘—π‘“π‘œπ‘‘π‘“, π‘π‘’β„Žπ‘“π‘  Whose functional form is π‘šπ‘œ 𝑧 = π‘šπ‘œ 𝑧0 + 𝛾1𝑓𝑒𝑣 + 𝛾2𝑏𝑕𝑓 + 𝛾3π‘“π‘¦π‘žπ‘  + 𝛾4π‘¦π‘˜

2 + 𝑣𝑗

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Worker’s earning differences

π‘šπ‘œ 𝑧𝑗 = Οƒπ‘˜=0

𝑙

π›Ύπ‘˜ π‘¦π‘—π‘˜ + 𝛽1π‘—π‘œπ‘’π‘—π‘•π‘“π‘œπ‘π‘£π‘‘ It takes the no-indigenous pay structure as reference. ln 𝑧𝑗 = σ𝑗=0

π‘œ

π›Ύπ‘˜ π‘¦π‘—π‘˜ + 𝛽2π‘π‘šπ‘π‘‘π‘™ It takes the no-black pay structure as reference. ln 𝑧𝑗 = σ𝑗=0

π‘œ

π›Ύπ‘˜ π‘¦π‘—π‘˜ + 𝛽3π‘”π‘“π‘›π‘π‘šπ‘“ It takes the male pay structure as reference.

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Worker’s earning difference decomposition

ln 𝑧𝑁 βˆ’ ln 𝑧𝑛 = 𝑐𝑁 ΰ΄€ π‘Œπ‘ βˆ’ ΰ΄€ π‘Œπ‘› + ΰ΄€ π‘Œπ‘›(𝑐𝑁 βˆ’ 𝑐𝑛) ln 𝑧𝑁 βˆ’ ln 𝑧𝑛 = 𝑐𝑛 ΰ΄€ π‘Œπ‘ βˆ’ ΰ΄€ π‘Œπ‘›

π‘“π‘œπ‘’π‘π‘₯π‘›π‘“π‘œπ‘’

+ ΰ΄€ π‘Œπ‘ 𝑐𝑁 βˆ’ 𝑐𝑛

π‘’π‘—π‘‘π‘‘π‘ π‘—π‘›π‘—π‘œπ‘π‘’π‘—π‘π‘œ

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Monthly salary 2010-2018

87 72 132 135 206 223 337 355 760 850 1032 905

200 400 600 800 1000 1200

Males Females Males Females

Monthly salary (US dolars)

2010 2018

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Earnings differential

2010 2018 Females

  • 19.1
  • 13.6

Indigenous

  • 15.8
  • 22.3

Afro-Ecuadorian

  • 1.6
  • 8.8

Indigenous female

  • 36.4
  • 37.7

Afro-Ecuadorian female

  • 20.4
  • 22.2
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Earnings gap decomposition

14 5 71 72 86 95 29 28

Female Female Indigenous Indigenous 2010 2018 2010 2018

Female Indigenous

Endowment Discrimination Endowment Discrimination

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