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September 15, 2026WorldOpen Access

Female Employment in Ecuador After the 2015 Labor Reform: A Synthetic Control Analysis

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Authors

MFMarco Faytong‐HaroMBMildred Yamel Bitar-HernandezEAEstefano Andrade-Plaza

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Overview

Synthetic control analysis observes a sustained post-2015 decline in female employment in Ecuador, suggesting confounding by simultaneous macroeconomic shocks rather than direct legislative harm.

Key Points

  • To determine whether Ecuador's female employment-to-population ratio changed significantly after the enactment of the 2015 Organic Law for Labor Justice and Recognition of Domestic Work.
  • Applied the synthetic control method to annual country-level data from 1991 to 2023, comparing Ecuador to a weighted counterfactual constructed from eight Latin American and Caribbean countries.
  • Evaluated result credibility through in-time and in-space placebo assignments, post-to-pre mean squared prediction error (MSPE) ratios, expanded donor pool tests, and leave-one-out sensitivity checks.
  • Female employment fell below the synthetic counterfactual immediately following the reform, exhibiting a gap of approximately −3.0 percentage points in 2015 and reaching a peak annual deficit of −10.9 percentage points.
  • Ecuador recorded the highest post-to-pre MSPE ratio of approximately 26 across all comparison units, yielding a rank p-value of 1/9 (p=0.111) that did not reach conventional significance levels.
  • Confounding macroeconomic shocks—principally the 2015–2016 oil price collapse, economic contraction, and the COVID-19 pandemic—preclude establishing a direct causal link between the reform and employment declines.

Cite This Study

Faytong‐Haro et al. (2026) studied this question.

synapsesocial.com/papers/6aa913c79013453be30a1e9dhttps://doi.org/10.3390/world7090159
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