Schooling effects on young workers´ wages: the Ecuadorian case

Abstract

Mincer´s schooling returns model is one of the econometric tools most used in the investigation of wages in an economy. In Ecuador, the labor market is characterized by high levels of informality and discrimination against certain groups, including young workers, which in some cases are vulnerable population with low education levels. In Ecuador, between 2010 and 2015 within the group of workers aged between 23 and 29 years, for each additional year of schooling that individual has her labor income increases by an average of 10%. In the case of skilled workers the additional year of schooling translates into an average increase of 20% while for unskilled workers there is no salary premium for education.