Vulnerabilidad e informalidad: ¿Los trabajadores vulnerables son más propensos a la informalidad? Evidencia empírica para el Ecuador

Abstract

This research is intended to examine the rela-tionship between the Employment Vulnerabil-ity Index (EVI) and labor informality in Ecuador in 2018, 2019, and 2021 (considering both pre- and post-pandemic periods). The EVI was con-structed using a polychoric principal components analysis (PCPA), while a logistic regression model and a two-stage least squares linear probability model were employed to evaluate its association with workers’ informal status. The findings indi-cate a positive correlation between employment vulnerability and the likelihood of a worker being engaged in the informal sector, with this cor-relation being particularly pronounced among individuals with higher EVI scores. Accordingly, policymakers are advised to concentrate their efforts on enhancing workers’ conditions by increasing educational attainment and imple-menting programs designed to incentivize for-mal employment