Although Ecuador may have the most cumbersome labor market regulations in Latin America, these are not a major source … of segmentation of the labor market. The reason: the benefits mandated are fully fungible with wages.Ecuadorian labor … by a reduction of the base earnings on which they are calculated. Therefore, Ecuador's labor regulations do raise take …

rates, but in the longerterm only modest effects remain due to higher wages. …

rates, but in the longer-term only modest effects remain due to higher wages. …