Labor income gap in Ecuador due to discrimination, pre and post pandemic: Correction of error due to selection bias

Abstract

The objective of this research is to analyze the labor gap in Ecuador, correcting the session period by sample selection to show if the differences in labor income are due to observable or discriminatory situations, and if they changed after the pandemic. To achieve this objective, the annual employment databases for the years 2018, 2019 and 202 were analyzed, and a model described by Jones (2007) and Adkins and Hill (2011) was initiated, who conclude in the application of the model of Heckman and the failure of the Oaxaca-Blinder method was estimated to correct errors and show possible discrimination in labor income. The results obtained show that it is more difficult for women, young people and ethnic minorities to find work, and when they are in employment their income is lower, even the labor gap between men and women increases after the pandemic. Income gaps are explained by discriminatory factors and observable factors in the case of women and ethnic minorities; while for young people it is due to observable factors.