Effects of physical characteristics on labor income in Ecuador, 2012

Abstract

The goal of this paper is to analyze the effects that physical characteristics of workers have over wages in the Ecuadorian labor market. Using micro data information taken from the 2012 National Health and Nutrition Survey of Ecuador, Mincer equations are estimated relating the wage income per hour and socioeconomic characteristics of the worker variables. Given that survey data present an implicit problem called selection bias, which consists in lack of randomness within the survey respondents, a Heckman anti-bias equation is used in order to correct this issue. Results show that those taller and heavier individuals, as well as those that have higher body-mass, tend to have higher wages. These results are consistent even between genders, geographic areas and educational levels.