The Rural-Urban Divide in Gender Wage Gaps: an Analysis of Ecuador

This paper examines gender wage gaps in Ecuador, focusing on differences between urban and rural labor markets over the last decade. Using data from the ENEMDU survey (2013–2023), the study undertakes two key analyses. First, it measures the gender wage gap across rural and urban markets, correcting for selection bias using the Heckman correction method. Second, it applies the Oaxaca-Blinder decomposition to identify the proportion of wage disparities attributable to observable characteristics and unexplained factors. The results reveal an existing wage disparity both in rural and urban areas. Both areas show a reduction in the wage gap between 2013 and 2019. However, while wage gaps were higher in rural areas between 2014 and 2016, the period following 2018 reveals a trend toward convergence with urban levels. From 2019 onward, this trend reverses, with rural areas showing smaller wage gaps than urban areas. This reduction in the wage gap in rural areas is not the result of improved labor market conditions for rural women but rather reflects a broader deterioration in employment within the sector. The results of the Oaxaca-Blinder decomposition suggest that the largest proportion of the gender wage gap in Ecuador—more than 85%, both in urban and rural areas—can be attributed to observable differences in productive characteristics.