Ecuador's Labor Regulations Boost Take-Home Pay, But Not Equally Across Sectors.
Labor market regulations in Ecuador affect labor earnings by increasing take-home pay, but not as much as expected due to reduced base earnings. Compliance with regulations leads to higher pay in the public sector and with active trade unions. However, wage gaps between industries remain similar to countries with more flexible labor markets. Simply changing labor laws may not significantly impact wages, especially in sectors like agriculture. Streamlining labor laws could bring some change, but only to a moderate extent.