Since coming to power in 2007, the Government of Ecuador has revised the structure of minimum wages annually, aming to improve wages for the lowest paid and alleviate poverty. A team of local researchers investigates the impact of the minimum wage policy on real wages, hours worked, and employment rates among low-wage workers in Ecuador. The researchers find that the minimum wage increases have, indeed, helped to raise the wages of low-wage workers. However, the findings also indicate a possible policy compliance problem as increased hourly wages are linked to decreased hours worked by women.
Find out more about the research methods, findings and policy recommendations in the following PEP publications: