Informal Economy and Income Distribution in Ecuador During the COVID-19 Pandemic

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2022

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Revista de la Facultad de Ciencias Económicas: Investigación y Reflexión




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Héctor Alberto Botello Peñaloza et al., « Informal Economy and Income Distribution in Ecuador During the COVID-19 Pandemic », Revista Facultad de Ciencias Económicas: Investigación y Reflexión, ID : 10670/1.ji6qzq


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"This paper seeks to analyze the evolution of labor informality in Ecuador during the corona-virus. The analysis uses microdata from household surveys for 2019 and 2020 to contrast the evolution of informality rate and income. A wage decomposition model is used to estimate the variation in income between the two periods. The results show an annual drop of 11 % in the informal population working a year ago; however, the informality rate rose by 2%. This behavior is contextualized by a 20 % decrease in the hours worked per week and a 29 % in hourly labor income."

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