Determinants of racial discrimination in the labor market in Ecuador, 2010-2012

Abstract

<em>Introduction</em>: This article aims to quantify racial discrimination in the labor market in Ecuador between 2010 and 2012. <em>Methodology</em>: Information is collected from quarterly household surveys on employment prepared by the National Institute of Statistics and Census of Ecuador, from which Mincer equations are estimated for labor income per hour. Subsequently, the Oaxaca-Blinder decomposition with Heckman correction is used to determine wage gaps attributable to observable and unobservable factors regarding two ethnic groups: mestizos and whites. <em>Results</em>: The wage gap is significant and positive for white people, and it increases during the period of analysis. 40 % of this difference is due to higher provisions in human capital. However, about 42 % of the gap remains unexplained.