Determinants in the Hiring of Workers by Ecuadorian Manufacturing Companies
DOI:
https://doi.org/10.29019/eyn.v13i2.1047Keywords:
Net fixed assets, Hiring of workers, Job demand, Manufacturing companies, Fixed effects model, Ordinary least squares methodAbstract
The purpose of this research was to carry out an analysis of the number of employees demanded in the Ecuadorian manufacturing sector during the 2010-2019 period, given that it is one of the three sectors with the greatest capacity to generate jobs. However, in recent years it has shown less dynamism. The data provided by the Superintendence of Companies, Securities and Insurance made it possible to establish logarithmic variables of the wage bill, sales as a proxy variable for production and net fixed assets as a proxy variable for Gross Fixed Capital Formation (GFKF). Using panel data, a fixed effects model was estimated using the Ordinary Least Squares method. The results showed that with a 1 % increase in sales, ceteris paribus, the number of workers hired increased by 0.22 %. In addition, the sales variable was the variable that most influenced the hiring of personnel. It was also possible to show that, in the face of a 1 % variation in the wage bill, ceteris paribus, hiring varied by 0.33 %. Finally, a change of 1 % in the variable net fixed assets, ceteris paribus, caused a variation of 0.003 % in the number of employees. However, it was not an individually significant variable.
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