UNEMPLOYMENT RATE ANALYSIS OVER AGGREGATE CONSUMPTION DETERMINANTS: EMPIRICAL EVIDENCE OF ECUADOR

Ecuador's unemployment rate of year 2000 was 12% with positive fluctuations of two to three points on the following five years resulting on a fraction of its population migration towards Europe and USA. It was an impact of economic instability that resulted in a general financial crisis. Unemployment rate of Ecuador for the period 2000 - 2015 and determinants of consumption were analyzed in this study as well as permanent income, consumption growth rate and preventative national savings level. A basic macroeconomic scenario for Ecuador is confirmed by analyzing the inverse relationship between unemployment and consumption growth rate.