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Desarrollo y Sociedad
Print version ISSN 0120-3584
Abstract
FIGUEROA C., David Sebastián; AVILA V., Pamela Gabriela and MENDOZA V., César Andrés. Vulnerability and informality: Are vulnerable workers more prone to informality? Empirical evidence from Ecuador. Desarro. soc. [online]. 2024, n.97, pp.33-58. Epub May 01, 2024. ISSN 0120-3584. https://doi.org/10.13043/dys.97.2.
This research is intended to examine the relationship between the Employment Vulnerability Index (EVI) and labor informality in Ecuador in 2018, 2019, and 2021 (considering both preand post-pandemic periods). The EVI was constructed 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 indicate a positive correlation between employment vulnerability and the likelihood of a worker being engaged in the informal sector, with this correlation 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 implementing programs designed to incentivize formal employment.
Keywords : Employment; labor market; Ecuador.