Income and Population Aging in Ecuador: An Analysis of Urban–Rural Income Gaps Among Older Adults
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The objective of this research is to analyze the determinants of labor income among the elderly population in Ecuador and to decompose the urban-rural wage gap, within the context of demographic transition. To explain the factors influencing this disparity, Mincer equations and the Oaxaca-Blinder decomposition technique were applied using microdata from the National Survey of Employment, Unemployment, and Underemployment (ENEMDU). The most relevant results evidence a significant income disparity favoring the urban zone. The analysis demonstrates that, while the gap is explained primarily by accumulated differences in human capital endowments, a structural unexplained component persists, penalizing labor insertion in rural areas. Paradoxically, returns to education were identified as higher in rural areas due to skills scarcity. It is concluded that educational policies are insufficient unless integrated with territorial development strategies to correct structural labor market distortions in old age.
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