Determination of the urban wage premium in Ecuador

This paper, in closing the knowledge gap for developing countries, aims to estimate the urban wage premium (UWP) in Ecuador for different types of workers by using instrumental variables to address the endogeneity issue. The results show that for formal workers, the wage elasticity is 0.05/0.12 with...

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Detalles Bibliográficos
Autores: Guevara Rosero, Grace Carolina, Pozo, Diego del
Tipo de recurso: artículo
Fecha de publicación:2020
País:España
Institución:Universidad de Alcalá (UAH)
Repositorio:e_Buah Biblioteca Digital Universidad de Alcalá
Idioma:inglés
OAI Identifier:oai:ebuah.uah.es:10017/44127
Acceso en línea:http://hdl.handle.net/10017/44127
Access Level:acceso abierto
Palabra clave:Urban wage premium
City size
Wage
Latin America
Prima salarial urbana
Tamaño de ciudades
Salarios
América Latina
Economía
Geografía
Sociología
Economics
Geography
Sociology
Descripción
Sumario:This paper, in closing the knowledge gap for developing countries, aims to estimate the urban wage premium (UWP) in Ecuador for different types of workers by using instrumental variables to address the endogeneity issue. The results show that for formal workers, the wage elasticity is 0.05/0.12 with respect to cantonal population/population density, and 0.049/0.088 with respect to the number of firms/firm density. These estimates are higher than those for informal and self-employed workers. Workers located in metropolis and big cities earn wages 9.6% and 7% higher than those workers located in small towns, respectively. Some cities stand as exceptions because they offer low UWP although they have large populations. This discrepancy could be related to poverty and the disorganized urban growth that cities in developing countries face.