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Sticky Floor and Glass Ceiling in Ecuador. The Evolution of the Gender Wage Gap, 2010-2021

Abstract:

This research focuses on the evolution of the Gender Wage Gap (GWG) and its components (endowment effect and coefficients effect) over the entire wage distribution in Ecuador between 2010 and 2021. It was used Melly's decomposition method based on quantile regressions along the wage distribution with Data from Ecuador's National Survey of Employment, Unemployment, and Underemployment (ENEMDU for its name in Spanish). There was found strong evidence of a Sticky Floor (a larger GWG at the tenth percentile than the median) and of a Glass Ceiling (a larger GWG at the ninetieth percentile than the median) for Ecuador. The results show that women with low and high income have limited mobility and invisible barriers which prevent them from getting better positions and salaries. The ninety-nine (99) regressions also suggest a GWG favoring men, which is explained by a discrimination factor (coefficient effect). Public policy must be geared towards fighting discrimination against women to reduce gender wage inequality.