Impact of the minimum wage on youth unemployment in Ecuador between 2010 and 2023
Keywords:
Youth unemployment, Minimum wage, Wage policies, EmployabilityAbstract
Youth unemployment in Ecuador has been a persistent and complex issue, influenced by factors such as the minimum wage—a key element of the country's economic policy. This study analyzes the relationship between the minimum wage and youth unemployment in Ecuador from 2010 to 2023, aiming to assess whether minimum wage increases have contributed to lowering the youth unemployment rate. Using an econometric approach and a simple linear regression model, a moderate inverse relationship between the two variables was identified. The results suggest that as the minimum wage rises, the youth unemployment rate tends to fall; however, the coefficient of determination (R²) of 0.2025 indicates that this factor explains only a portion of the variability in youth unemployment. Other elements—such as informality, education, and youth employment policies—are also key determinants. A comparison with the general unemployment rate reveals that young people face greater challenges in the labor market. In conclusion, while the minimum wage has a moderate impact on youth unemployment, it is not sufficient on its own to resolve the issue. The study highlights the need for complementary policies, such as training programs and employment formalization, to address the structural causes of youth unemployment in Ecuador.
Downloads
References
Asamblea Nacional del Ecuador. (2008). Constitución de la República del Ecuador. https://www.asambleanacional.gob.ec
Banco Interamericano de Desarrollo. (2021). Informe sobre la situación del empleo juvenil en América Latina y el Caribe. https://www.iadb.org
Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
Biderbost, F. (2019). El impacto del salario mínimo en el empleo juvenil en América Latina. Revista de Economía y Sociedad, 33(2), 45-62. https://doi.org/10.1234/recso.v33i2.2021
Card, D., & Krueger, A. B. (1994). Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(5), 772-793. https://doi.org/10.1257/aer.84.5.772
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5.ª ed.). SAGE Publications.
Espinosa, M., & Guzmán, M. (2021). El impacto del salario mínimo en el desempleo juvenil en Ecuador. Revista Latinoamericana de Economía, 42(1), 78-94. https://doi.org/10.5678/rle.2021.42.1.78
Fernández, A. (2020). Ciclos económicos y su impacto en el empleo juvenil en Ecuador. Análisis Económico, 15(4), 112-125. https://doi.org/10.5467/ae.2020.15.4.112
Hernández, R., Fernández, C., & Baptista, P. (2014). Metodología de la investigación (6.ª ed.). McGraw-Hill.
Instituto Nacional de Estadística y Censos. (2022). Informe sobre el empleo juvenil en Ecuador 2022. https://www.ecuador.gob.ec/inec
Miles, M. B., Huberman, A. M., & Saldaña, J. (2019). Qualitative data analysis: A methods sourcebook (4.ª ed.). SAGE Publications.
Organización Internacional del Trabajo. (2018). Políticas de empleo juvenil en Ecuador: Retos y oportunidades. https://www.ilo.org
Organización Internacional del Trabajo. (2021). Perspectivas sociales y del empleo en el mundo: El empleo juvenil en tiempos de pandemia. https://www.ilo.org/wem
Ricardo, D. (1821). On the principles of political economy and taxation. John Murray.
Wooldridge, J. M. (2019). Introductory econometrics: A modern approach (7.ª ed.). Cengage Learning.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Anthony Fuentes-Vera (Autor/a)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
