Protection against unemployment. A model for the Equator from the Spanish historical evolution

Abstract

Unemployment protection in Ecuador, despite mechanisms like the severance insurance system, remains limited due to
low enrollment and strict eligibility requirements. Coverage excludes vulnerable groups such as domestic workers and Indigenous communities, exacerbating inequality. Additionally, funds allocated for unemployment protection have been insufficient and, in some cases, diverted for other purposes. Compared to Spain, Ecuador has a lower coverage rate and weaker financial sustainability in its protection system. Generosity models and actuarial calculations indicate that the current framework fails to ensure economic security during periods of job loss. A comprehensive reform is needed to expand enrollment, provide effective protection, and address factors such as gender equity, ethnic diversity, and the inclusion of informal workers. Without a systemic restructuring, most of the population will remain unprotected against income loss, fueling recruitment into drug trafficking networks