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Effect of inequality and economic activity on COVID-19 in Ecuador: An outline of its possible economic, social and demographic determinants

Abstract:

COVID-19 is a health problem that we are experiencing today which caused economic activity to decrease worldwide as a result of the confinement decreed in the countries. COVID-19 is influenced by economic factors that affect the spread of infections and vary depending on the structural characteristics of the countries. In this sense, the objective of this research work is to examine the effect of income inequality and economic activity on COVID-19 infections in Ecuador. Then economic, social and demographic variables are used to determine other factors associated with the increase in infections. To meet the objective, the methodology used is based on the use of econometric techniques (linear regression model with Ordinary Least Squares estimator) with cross-sectional data collected from the National Survey of Employment, Unemployment and Underemployment (2019) and the Ministry of Public Health (2020). The results obtained show that the increase in inequality causes increases in the contagion of COVID-19, in the same way the sectors of economic activity cause a heterogeneous effect on COVID-19. Policy measures should be aimed at guaranteeing access to goods and services for the most unequal groups to reduce COVID-19 infections.