Employment Segmentation in Ecuador with Sociodemographic Variables: Evidence from kPrototypes
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Abstract
The present study aims to examine labor market segmentation in Ecuador through a quantitative approach, using data from the National Employment, Unemployment, and Underemployment Survey (ENEMDU 2024) and applying the k-prototypes algorithm to identify labor patterns across age groups. The results reveal a highly fragmented labor market, divided into four distinct profiles: adolescents engaged in unpaid work and excluded from education; adult workers employed informally without access to social security; a small segment with formal employment and affiliation to the Ecuadorian Social Security Institute (IESS); and older adults engaged in precarious self-employment. Furthermore, none of the identified segments exhibit income levels substantially above the minimum wage, reflecting the structural weaknesses of the labor market and its limited capacity to generate adequate earnings. In this regard, the study shows that education and experience alone are not sufficient conditions to secure quality employment in an environment characterized by high informality and low economic dynamism.
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