Underemployment in the youth labor market in Ecuador

Abstract

The article presents an analysis about the characteristics of individuals that are part of youth underemployment. For this purpose, the methodology used is the estimation of probabilistic models, with the use of micro-data that focus precisely on analyzing the main characteristics of those who do not have adequate employment (commonly known as underemployed). The study segments the variables used in the estimates into three categories: demographic characteristics, human capital and socioeconomic conditions. Within these three categories, there are characteristics of young individuals that lead them to have precarious jobs such as those offered by underemployment. For example, the results show discriminatory gender and ethnic components. It also highlights the importance of the area in which the young individual resides, its family structure and how many qualifications, in terms of human capital, it has. The study also considers the incidence of the socioeconomic situation of the individual in determining the probability of being or not underemployed.