The intersection between traditional roles and a fragmented labor market: a propensity score matching analysis of gender wage gap in Ecuador

Abstract

PurposeThis study aims at estimating the gender wage gap in Ecuador, and its evolution over the last decade and a half, exploring its heterogeneity through different working conditions (formal/informal, full employment/underemployment, short term/long term and tenure/no tenure) and workers personal characteristics (education level; age and children).Design/methodology/approachPropensity score matching (PSM) and coarsened exact matching (CEM) are used to examine the gender pay inequality of wage earners in Ecuador, using the National Employment, Unemployment and Underemployment Survey (ENEMDU) data set from 2007 to 2022.FindingsResults show a persistent gender pay gap, evidencing a significant heterogeneity through the different dimensions taken into account, in terms of working conditions and workers personal characteristics. The evolution of the pay gap during the years analyzed hardly shows any reduction of differences in earnings between men and women; on the contrary, women exposure to precarious and unregulated jobs seems to be increasing wage inequality.Practical implicationsThe results make the case for active policies oriented not only at containing the negative effects of the traditional division of labor within the family but also at improving labor law enforcement, mitigating informality and workers rapid turnover.Originality/valueThis study is one of the few that use matching techniques to study the gender wage gap and the first in Ecuador; the time span taken into account is larger than previous studies, allowing a medium-long run perspective across different economic phases.