Incidencia del salario mínimo sobre el empleo de los jóvenes en el Ecuador

Abstract

Unemployment can occur for some reasons. One is due to increases in the real minimum wage in the labor market, mainly affecting people with equal incomes and below it. Thus, the group of people with low incomes are young. To determine the relationship, we have built a competitive econometric model, which has been running the following regression: unemployment rate according to the real minimum wage for the whole population between 15 and 24. The methodology is the same for the other groups of the economically active population. Taking all the surveys of 2012 on employment, unemployment and underemployment conducted by INEC, the results of this study indicate that increases in real wages if it affects the unemployment rate in a direct way, the effect is particularly acute in young people, and in this group mentioned, the greatest effect is young without a tertiary degree or another superior, the other hand, for young people with a certain degree of realism wage changes is not a very important explanation of unemployment. In the case of adults, changes in real wages is not so much as in other population groups. The last group of older adults we came to the conclusion that the minimum wage increases are not cause to be unemployed.