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𝐼 = 𝐼𝑤𝑖𝑡ℎ𝑖𝑛 + 𝐼𝑏𝑒𝑡𝑤𝑒𝑒𝑛 + 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 (1)

ln ℎ𝑜𝑢𝑟𝑙𝑦 𝑤𝑎𝑔𝑒 𝑖 = 𝑐 + 𝛽 𝑆𝑘𝑖𝑙𝑙𝑒𝑑𝑖 + 𝑿′𝒊 𝜣 + 𝜀𝑖 (2)

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 90.0% 120.0%
80.0%
100.0%
70.0%
60.0% 80.0%
50.0%
60.0%
40.0%
30.0% 40.0%
20.0%
20.0%
10.0%
0.0% 0.0%
Decil
Decil 1 Decil 2 Decil 3 Decil 4 Decil 5 Decil 6 Decil 7 Decil 8 Decil 9
10
2006 12.1% 15.7% 18.4% 23.2% 25.7% 32.9% 40.2% 49.7% 64.2% 76.4%
2016 23.7% 27.4% 31.1% 34.6% 40.5% 47.1% 50.4% 58.9% 74.4% 83.3%
Relative growth 96.2% 74.5% 69.3% 49.3% 57.8% 43.0% 25.4% 18.5% 15.9% 9.0%

2006 2016 Relative growth

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CUMULATIVE GROWTH OF SKILLED-WORKERS’ SHARE AND AGGREGATE LABOUR PRODUCTIVITY, BETWEEN 2006-
2016

Note: The classification of industries is homogenized according to the “ISIC 4.0”. Labour productivity is defined as real production per worker. Each bar
reports the percentage change, in the respective value, between 2007 and 2016. Sources: Central Bank of Ecuador and ENEMDU. Own computations.
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