Vanessa Carrión-Yaguana on labor regulations and formal employment

Vanessa Carrión-Yaguana will present at the WIDER Seminar Series on 31 August 2022.

Labor regulations and formal employment: Evidence from Ecuadorian firms in the Galapagos Islands

Abstract

The Special Regimen of the Galapagos Province´s Organic Law (LOREG) which was amended in 2015 was intended to improve the conservation of the unique ecological systems and the biodiversity of the Galapagos Islands by maintaining human interference in the environment at the lowest possible level. While principally focused on environmental protection, the LOREG also includes three reforms that have the potential to alter Galapagos’ employment dynamics: (1) a minimum wage increase, (2) stronger environmental regulations and, (3) less stringent rules to hire nonresidents. This paper seeks to evaluate how these regulations have impacted on employment decisions by firms. Results show that formal employment increased by approximately 14%. This is the net result of opposite effects since increase in the minimum wage and stronger environmental regulation might reduce employment while less stringent rules to hire nonresidents might encourage firms to hire more workers.

About the speaker

Vanessa Carrión-Yaguana is an Assistant Professor at Universidad de Las Américas in Quito, Ecuador. She is head of the Research Group Lugar, Medio y Sociedad (Place, Context and Society). She holds a Ph.D. in Economics from Virginia Tech. Her research focuses on labor economics, political behavior, and impact evaluation of development programs, all these topics addressed from a gender perspective.

WIDER Seminar Series

The WIDER Seminar Series showcases the latest research on key topics in development economics. It provides a forum for for visiting scholars, UNU-WIDER researchers, external researchers, policymakers and industry specialists to present their research.

In addition to providing a forum for both academic debate and training, the series presents an opportunity for policymakers and others interested in development to learn about the latest research methods and findings.

The WIDER Seminar Series events take place on Wednesdays. All those interested are invited to register and attend via Zoom.