UNIVERSIDAD NACIONAL DE CHIMBORAZO  
KAIRÓS, REVISTADE
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
Vol. 2 (2019), No. 3, Segundo Semestre (Julio - Diciembre), (21-29)  
ISSN No. 2631-2743  
A GLIMPSE TO THE WORKING CONDITIONS IN THE TWENTIES AND THIRTIES  
IN ECUADOR  
UN VISTAZO A LAS CONDICIONES DE TRABAJO EN LOS AÑOS VEINTE Y TREINTA EN EL ECUADOR.  
1
Bryan Josué Naranjo Navas 2  
Christian Paúl Naranjo Navas  
Resumen  
is article develops three topics that are closely related: internal consumption, working conditions, and price index  
in Ecuador in relation to the Latin American region. With regard to working conditions, these have been contex-  
tualized taking into account labor laws, the social security system, and the development of the establishment of the  
minimum wage. Af er reviewing the labor conditions, making use of the bulletins of the Central Bank of Ecuador,  
the price index for the decade studied will be reconstructed.  
Palabras clave  
Ecuador, labor conditions, social security system, minimum wage, economic history  
Abstract  
En este artículo se desarrolla tres temas que están estrechamente relacionados: consumo interno, condiciones la-  
borales, e índice de precios en Ecuador con relación a la región de América Latina. Con relación a las condiciones  
laborales, éstas se han contextualizado tomando en cuenta las leyes laborales, el sistema de seguridad social, y el  
desarrollo del establecimiento del salario mínimo. Después de revisar las condiciones laborales, haciendo uso de los  
boletines del Banco Central del Ecuador, se reconstruirá el índice de precios para la década estudiada.  
Keywords  
Ecuador, condiciones laborales, sistema de seguridad social, salario mínimo, historia económica  
1
Universidad San Francisco de Quito (Ecuador). Correo electrónico: eldestinobryan@hotmail.com.  
2
Universidad Nacional de Chimborazo (Ecuador). Correo electrónico: cnaranjo@unach.edu.ec.  
Recibido 05 mayo 2019; Aceptado 05 julio 2019.  
2
2
KAIRÓS, REVISTA DE  
FACULTAD DE  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
As part of working conditions is the establishment of  
the minimum wage, which rules in Ecuador as a general  
and mandatory rule from 1936. During the decade of the  
thirties, some Latin American countries implemented  
political and legal processes for the establishment of the  
minimum wage. A trend can be noted in the establishment  
of minimum wages: the minimum wage was not unique  
but presented an upper limit and a lower one depending  
on zones and regions.  
Introduction  
To be able to analyze the working conditions in Ecuador  
during the decades of the twenties and thirties, it is needed  
to consider the political and economic environment  
that developed in Ecuador and in the Latin America  
region. During these decades, some important events  
occurred, events that changed the political and economic  
perspectives. Within the first decades of the twentieth  
century, a period called as Plutocracy, the government  
and private banks made political and economic decisions  
based on their mutual interests. In July 1925, the Julian  
Revolution overthrew the government of the President  
Córdova, and found the Central Bank of Ecuador in 1927  
with the gold reserves of some private banks (Naranjo  
Navas, 2017).  
e research method used in this article is the Historical-  
comparative method, which intends to establish certain  
similarities or differences within a certain phenomenon,  
considering different places, political, economic or social  
structures. Also, this article develops three topics that  
are thoroughly related: internal consumption, working  
conditions, and price index in Ecuador in relation to  
the Latin American region. With regard to working  
conditions, these have been contextualized taking into  
account labor laws, the social security system, and the  
development of the establishment of the minimum wage.  
Af er reviewing the labor conditions, making use of the  
bulletins of the Central Bank of Ecuador, the price index  
for the decade studied will be reconstructed.  
e Julian Revolution chose Isidro Ayora as the President  
of Ecuador. Ayora had to face the critical economic  
situation that was known as the Great Depression. is  
crisis obliged the government to leave the gold standard,  
which created increasing inflation rates. e economic  
crisis caused a decade lasting political instability, with  
fourteen presidents during the decade of the thirties.  
us, within these two decades, some profound political  
and economic events that pictured the context of the  
working conditions took place.  
Internal Consumption  
When the Great Depression hit the Latin America region  
from 1929 to 1934, industries and laborers faced a twofold  
situation. On the one hand, taking into consideration  
that most of the countries’ monetary system was based  
on the gold standard, the money offer reduced, which, in  
return, obligated people to acquire less products and paid  
for less amount of services, making industries lower the  
prices of their products and services in order to keep their  
competitiveness given the new market conditions (Drinot  
Given the composition of the Ecuadorian population, it  
is known that at least half the population was indigenous,  
which led a completely sedentary life, feeding only on  
grains or tubers that gives them their ‘huasipungo’ and  
dressing in the simple fabrics they produce by themselves  
or their neighboring weavers, in exchange for the milk of  
their goats or cows or the wool of their sheep, or of the  
meat of their poultry (Central Bank of Ecuador, 1940).  
According to the same source, this part of the population  
is outside the internal commerce of consumption because  
they are producers and consumers of the products that  
they cultivated or exchanged.  
&
Knight, 2014). On the other hand, as industries sold  
less, their production costs ought to be reduced as well,  
finding two possible solutions: the diminution of salaries,  
or the decrease of the number of workers (Arnaut, 2010).  
Because of certain law restrictions, producers preferred  
to decrease the number of workers, increasing, in this  
way, the percentage of unemployment.  
About a quarter of the population is composed of wage-  
earning workers or peasants who barely participated  
in the national trade, and the rest is made up of public  
employees, merchants, industrialists and rentier owners,  
who participated actively in the national trade. It is also to  
considerthelimitedpurchasingpoweroftheinhabitantsin  
Ecuador, with a population close to 2 million inhabitants,  
their purchasing power was low and did not exceed that  
of an entire developed country of 200,000 (Feiker, 1931)  
inhabitants. Feiker (1931) estimates that most of the  
Ecuadorian population was related to agriculture.  
Withinthethirties, theworkersreceivedseveralimportant  
benefits: eviction, compensation for untimely separation,  
maximum duration of work and rest, prohibition to work  
under fourteen years. is current legal context can be  
presumed as a generalized work environment in public  
works, however, it is not a generalized environment in the  
private sector. No reports have been found that evidence  
the applicability of labor laws, which is understandable  
given the high rate of informality, with most of the  
population living in community barter systems or in  
labor systems based on huasipungo.  
Some agricultural products that include sugar, cotton,  
tobacco, corn, rice, potatoes, and other products such as  
bananas, pineapples, oranges, lemons, and other fruits,  
all these products were consumed almost entirely within  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
KAIRÓS, REVISTA DE  
23  
FACULTAD DE  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
the national territory (Stevens, 1940). e products with  
the highest internal consumption in Guayaquil, the main  
coastal city, were the upper top cocoa, coffee, rice, sugar,  
tagua and mountain hides. In Quito, the main products  
were rice, peas, lentils, barley, coffee, wheat, morocho,  
beans, potatoes and corn (Central Bank of Ecuador,  
Potatoes  
Corn  
-
-
4,8  
6,5  
16  
4,29  
5,32  
6,65  
17,5  
4,29  
4,52  
6,25  
6,07  
3,95  
4,92  
17,52  
May  
June  
July  
August  
1
927  
1928  
15,5  
16  
1927  
24  
1928  
14  
1927  
26,5  
22  
1928  
15  
1927  
34  
1928  
14,75  
14  
Rice  
Peas  
32,75  
21,5  
37  
19,5  
27,5  
5
15,75  
27,1  
4,75  
89  
14,5  
27,25  
3,8  
20,5  
31,5  
5,25  
100  
1
930). Below are the 1928 and 1929 prices, presented by  
Lentil  
26,7  
4,65  
89  
32,5  
6,5  
25  
months, of the most important products in the Quito  
and Guayaquil markets. e prices of the main products  
of these markets were collected by hand, daily, by the  
Ministry of Finance, and then published in the bulletins  
of the Central Bank of Ecuador.  
Barley  
Coffee  
Wheat  
Morocho  
Frejol  
10,35  
96,5  
16,35  
17,25  
25  
4
96  
97,5  
96,5  
13,32  
4,45  
13,5  
5,75  
4
98  
13,32  
5,1  
16,56  
13  
13,04  
4,5  
15,37  
12,25  
20  
16,49  
9,5  
13,52  
4,4  
13,84  
4,97  
4
22  
13,75  
5,37  
4,42  
14,25  
5,10  
7,22  
12,5  
8,25  
4,45  
Table 1. Prices in the Plaza de Guayaquil, in Sucres, 100 pounds  
quintal  
Potatoes  
Corn  
5,05  
6,32  
4,8  
5,6  
12,37  
9,05  
January  
February  
March  
1928  
April  
1928  
September  
October  
November  
December  
Products  
1
928 1929 1928  
1929  
57  
90  
17  
21  
7
1929  
57  
90  
17  
21  
7
1929  
54  
93  
15  
21  
7
1927  
23  
1928  
14,5  
14  
1927  
1928  
21,78  
17,5  
27  
1927  
1928  
21,5  
16  
1927  
1928  
21  
Cocoa Arriba Superior  
48  
85  
18  
22  
48  
90  
17  
21  
7
62  
89  
16  
22  
7
71  
85  
13  
22  
7
64  
85  
14  
22  
7
Rice  
Peas  
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Coffee  
Rice  
20,5  
32,5  
4,75  
95  
16  
Lentil  
25  
24  
28  
Sugar  
Tagua  
Leather  
Barley  
Coffee  
Wheat  
Morocho  
Frejol  
4,25  
98  
4,25  
82  
4,87  
86  
5
94  
9,50  
82  
16,52  
8,5  
13,33  
4,45  
12  
14,77  
7,37  
13,28  
5,05  
5,42  
14,89  
5,5  
15,21  
6,25  
15  
37  
72  
42  
72  
42  
75  
47  
May  
June  
July  
August  
13,5  
4,9  
15,5  
5,75  
5,27  
1
928 1929 1928  
1929  
62  
85  
17  
21  
6
1928  
60  
93  
12  
22  
8
1929  
65  
74  
18  
21  
7
1928  
48  
90  
11  
1929  
64  
Potatoes  
Corn  
8,7  
5,8  
4,92  
Cocoa Arriba Superior  
66,5  
54  
92  
15  
22  
6
62  
94  
13  
22  
8
6,65  
5,75  
Coffee  
Rice  
92  
13  
22  
7
75  
18,5  
21  
Source: Banco Central del Ecuador, october 1930.  
Sugar  
Tagua  
Leather  
21  
7
7
72  
37  
72  
37  
82  
42  
82  
42  
Labor conditions  
Sepember  
October  
November  
December  
e working conditions in the Ecuadorian context, it  
1
928 1929 1928  
1929 1928  
1929  
54  
1928  
46  
1929  
59  
is important to understand the context of work in the  
decade from 1927 to 1937, are studied through three  
important topics, namely: the current labor laws, the  
social security system, and the establishment of the  
minimum salary. e current labor laws build the legal  
landscape around work; the social security system shows  
a clear context of the labor benefits in health and pension  
matters; and the minimum wage establishes minimum  
wages indispensable for the subsistence of a person. e  
evolution, legality and legitimacy of the minimum wage  
will correspond to the analysis of the following section.  
Cocoa Arriba Superior  
47,5  
66  
74  
45,5  
90  
13  
21  
6
74,5  
55  
44,5  
83  
Coffee  
Rice  
90  
12  
21  
7
61  
83  
50  
18,5  
21  
16,5  
21  
18  
18,5  
21  
16,5  
21  
19  
Sugar  
Tagua  
Leather  
21,3  
7
21  
7
7
7
7
6,5  
20  
95  
52  
82  
32  
82  
12  
72  
Source: Banco Central del Ecuador, october 1930.  
Table 2. Prices in the Plaza de Quito, in sucres, 100 pounds  
quintal  
With regard to the legal context, before 1927, some  
legislative provisions pertinent to labor conditions can  
be found. us, among the most important we find those  
described below. e Penal Code of 1906, in force in the  
January  
February  
March  
1927  
April  
1928  
Products  
1927  
1928  
21,75  
15,5  
28  
1927  
1928  
21  
1928  
20,5  
17  
1927  
34,5  
21  
Rice  
Peas  
-
-
-
-
-
-
-
-
32  
21  
32,5  
21,5  
38  
17  
16  
16,5  
26,25  
5
1
920s and 30s, instituted a system of labor protection  
Lentil  
37  
27  
37,9  
12,5  
97,5  
16,78  
17,5  
25,5  
27  
for workers, punishing with prison or fines the salary  
reductions (Article 298). On September 11, 1916, some  
work rules were decreed, “by which the hours and days  
of labor are fixed, in eight the first and six the second,  
per week” (Albornoz, 1931, p. 52). In the same report  
it is mentioned that, in 1921, the “Law on pecuniary  
Barley  
Coffee  
Wheat  
Morocho  
Frejol  
4,5  
13,5  
100  
17,17  
17  
13,5  
100  
16,97  
18  
5
4,75  
93  
99  
84  
93  
14,45  
6
14,45  
6
13,58  
5,7  
13,58  
5,25  
15  
17,5  
28,5  
15  
27,5  
15,35  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
2
4
KAIRÓS, REVISTA DE  
FACULTAD DE  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
compensation to the worker or day laborer, due to work  
accidents” was promulgated (Albornoz, 1931, p. 53). On  
July 13, 1925, the Social Welfare and Labor Section was  
created for the first time and on July 13, 1926, the General  
Labor Inspectorate was created.  
in workshops, day laborers, servants and, in general,  
throughout the informal sector is doubtful.  
ose who lived in huasipungos were “destitute of land,  
homeless, without belongings of any kind, they commit  
themselves, sometimes for all their lives, for a minimum  
amount whose debt is never extinguished” (Albornoz,  
1931, p. 47). ose farmers who lived on rented land  
pay the rent with the work of the land, that is, with what  
they cultivated and, sometimes, with monetary species.  
erefore, the labor context in many of the peasants did  
not correspond to the one outlined in the labor laws.  
As of 1927 several reforms and new laws to the labor  
situation are found which are described below. On March  
4
, 1927, the Labor Accident Prevention Law was passed,  
on March 8, the Retirement Law, Montepío Civil, Savings  
and Cooperative was enacted. On October 7, 1928, six  
laws were promulgated, namely: Law on Individual  
Labor Contract; Law of Maximum Duration of the  
Weekly Work and Rest Day; Law on Work of Women and  
Children, and Protection of Motherhood; Eviction Law;  
Law on Liability for Work Accidents and Procedures Law  
for Actions Coming from Work. (Albornoz, 1931, pp. 58-  
e right to strikes and work risks are also considered.  
With respect to strikes, on July 31, 1936, the Strikes Law  
was promulgated, in which it was mentioned that in  
order to benefit from this right, workers have to exhaust  
the means of institutional complaints, “they must address  
the employer’s his requests, to which 51% of the workers  
of the factory have to adhere ... and can only declare a  
strike if, three days af er receiving the aforementioned  
statement, the employer is silent or replies negatively”  
(Guerrero, 1937: p 25).  
62).  
e Law on individual work contracts defines the legal  
concept of employer, eviction cases are foreseen; and  
compensation for untimely separation. e Law on  
maximum duration of working hours and weekly rest sets  
the mandatory work of every worker, private and public  
employee in eight hours a day and six days a week; In  
addition, for public employees, rest days are established  
on the days decreed as civic days, determines the overtime  
payment; and, it indicates the daily rest that divides the  
working day in two. e law of eviction of the work  
indicates penalties for cases of untimely separations and  
fixes the terms of eviction and indemnities. e Law on  
Workers’ Compensation Liability regulates compensation  
according to the severity of the harm caused by the  
accident (Albornoz, 1931, pp. 63-65).  
e Labor Accident Law was enacted in 1928, and was  
dividedintotwo,namely:workaccidentsandoccupational  
diseases. e law also prescribes compensation in  
case of partial disability, “the victim has the right to be  
compensated with an amount equivalent to two years of  
wages” (Guerrero, 1937, p. 22).  
With respect to the social security system, this was  
founded in 1928 as the “Pension Fund, which established  
mainly the benefits of retirement, civilian and mortuary  
fund in favor of civil and military civil servants”  
(
Instituto Nacional de Previsión, 1938, p. i). e benefits  
e Law on the work of women and minors and the  
of the Pension Fund included medical assistance, life  
annuities for total disability, retirements and refunds  
of all contributions. Medical assistance to workers who  
suffered from illnesses contracted in the performance of  
their work, or outside of them; disability annuities based  
on a monthly contribution to the Caja of 5%, “the cashier  
will grant an annual annuity of $ 864” (Instituto Nacional  
de Previsión, 1938, p. 6); retirements when the member  
was seventy-five years old, or when the member retired  
with twenty or more years of contributions; refunds  
of all contributions, “if the worker is unemployed, or  
withdraws from the Fund for any other legal reason, his  
contributions are returned intact” (Instituto Nacional de  
Previsión, 1938, p. 7).  
protection of maternity prohibits work for minors under  
fourteen years, establishes the obligation of employers to  
attend the primary education of workers under eighteen  
years of age, and is established as the maximum labor  
forty-eight hours a week to children under eighteen.  
With regard to women, the prohibition of night work,  
subsidized breaks during the previous three weeks  
and the three weeks following childbirth is established  
(
Albornoz, 1931, p. 64).  
iscurrentlegalcontextcanbepresumedasageneralized  
work environment in public works, however, it is not  
a generalized environment in the private sector. No  
reports have been found that report on the applicability  
of labor laws, which is understandable given the high  
rate of informality, with most of the population living in  
community barter systems or in labor systems based on  
huasipungo. us, with the labor legality system in force  
to date, it is likely that it has been applied throughout the  
public sector and to a lesser extent to the industrial sector.  
However, the application of labor legality with workers  
Minimum salary  
e establishment of the minimum wage, which governs  
in Ecuador as a general and mandatory rule from 1936,  
is part of working conditions, as it is said next: “another  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
KAIRÓS, REVISTA DE  
25  
FACULTAD DE  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
achievement of significance, is the relative minimum  
wage. e lack of legal fixation of the same, was a void  
that had to be filled urgently ... af er lengthy investigations  
it was possible to point out the minimum wage in a daily  
sucre in the mountain region, and two, in the coast  
region” (Guerrero, 1937, pp. 22- 2. 3).  
(1938), the legal processes in Argentina, Bolivia, Brazil  
and Chile, and the minimum wage tables in each of these  
countries are briefly described below.  
Argentina  
Despite the establishment of the minimum wage in  
Ecuador, it did not ensure the payment of the same to the  
entire economically active population, composed mostly  
of informal jobs. is is the case of the peasants, “many  
of them do not receive any salary in cash, rewarding their  
services with the land they occupy; others, according to  
the relations and agreements of the rustic estates, in the  
mountains, receive salaries that fluctuate from twenty to  
fif y cents, and in warm regions, from eighty cents to two  
and three sucres “(Moreno, 1934, p. 73).  
In the case of Argentina, minimum wages were established  
under the regulation of April 15, 1935, the date on which  
the minimum wage was enacted for the tailoring sector,  
while June 9, 1937 for the footwear industry. In the case  
of the textile sector, a minimum wage of 11 pesos is  
established for those who make wool raincoats, while it is  
0
.12 pesos for those who are engaged in short underpants.  
On the other hand, the Owen report (1938) refers to a  
bricklayers’ strike that put pressure on the resolution of  
January 24, 1936 on the minimum wage for a working  
day of eight hours a day: foremen, 6.40 pesos; assistant  
foreman, 5.20 pesos; pawns, 4.50 pesos.  
e fixing of the minimum wage aims to ensure the  
minimum necessary for the subsistence of workers  
and therefore the minimum wage provides important  
information to generate a lower limit necessary for the  
subsistence of workers and their families. us, it can  
be considered that any person with a family income, per  
person, less than 25 sucres were part of the poor class.  
Finally, the minimum wages of public workers were  
promulgated in the decree of September 28, 1934, dividing  
the Republic of Argentina into five zones, each with its  
own daily and monthly minimum wages. Minimum  
wages varied from 90 pesos for zone E to 160 pesos for  
zone A, and the daily minimum varied from 3.60 pesos to  
6.40 pesos respectively.  
Latin America  
To understand the minimum wages established in  
Argentina at the Latin American level, it is necessary to  
obtain its value in dollars through the exchange rate of  
the decade. us, in 1937, the monthly minimum wage  
in US dollars, in free exchange, is divided into three  
sectors: tailoring, which varies from 80.65 (woolen  
raincoat tailoring) to 0.87 (short briefs); masonry, the  
monthly minimum wage varies from 53.29 (foremen) to  
32.99 (laborers); finally, in the public sector, the monthly  
minimum wage ranges from 53.29 (zone a) to 26.39  
(zone e). Tailoring jobs as the masonry sector has only  
the minimum daily wage. To obtain the monthly salary,  
the daily minimum has been multiplied by 25, given that  
the salaries of the public sector are referenced 25 days  
a month. However, it is important to mention that the  
number of days worked per month may vary according  
to the sector.  
During the decade of the thirties, some Latin American  
countriesimplementedpoliticalandlegalprocessesforthe  
establishment of the minimum wage. e countries that  
implemented minimum wage scales took into account a  
variety of elements, such as the opinions and suggestions  
of the public sector, the geographical difficulties and  
demands of the labor sectors. From the data obtained  
in the countries studied, a trend can be noted in the  
establishment of minimum wages: the minimum wage  
was not unique, but presented an upper and a lower limit.  
In the decade of the thirties, some Latin American  
countries implemented political and legal processes  
for the establishment of the minimum wage, thus,  
Brazil, Mexico, Peru and Uruguay established at the  
constitutional level the need to establish a minimum  
wage (Owen, 1938, pp. 323-336). However, not all nations  
immediately implemented a system of legality to apply  
the constitutional norm.  
Table 3. Exchange rate: Argentine pesos in cents, 1929-  
1
937  
Other nations, such as Argentina, Brazil, Chile, Costa  
Rica, Cuba and Ecuador, took the initiative to form  
multi-section commissions for the establishment of  
minimum wages. In the decade of the thirties, in US  
dollars, Argentina had a minimum wage that varied from  
1
929  
1930  
1931  
1932  
1933  
1934  
1935  
1936  
1937  
Official  
change  
40,92 33,24 25,72 25,78 33,35  
32,95 32,35 32,72 33,31  
25,04 27,25 29,85 29,33  
Free  
change  
-
-
-
-
-
8
7
0.65 to 0.87; Bolivia, from 72.53 to 38.85; Brazil, from  
2.53 to 38.85; Chile, from 15.72 to 4.24; and, Ecuador,  
Source: Dirección Nacional de Estadística, 1944, p. 30  
from 4.77 to 1.17. Based on the report by Eugene Owen  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
2
6
KAIRÓS, REVISTA DE  
FACULTAD DE  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
Table 4. Minimum wages in Argentina in US dollars, 1935-1937  
Table 5. Exchange rate: Bolivians in cents, 1929-1937  
Work place  
1935  
1936  
1937  
1
929  
1930  
1931  
1932  
1933  
1934  
1935  
1936  
9,63  
1937  
-
dayly- monthly  
dayly- monthly  
dayly- monthly  
dayly- monthly  
Official  
change  
36,00  
35,21 35,36  
18,32 25,50 24,00 23,56  
Official  
change  
3
,55 – 88,96  
2,99 – 74,99  
,038 – 0,97  
3,59 – 89,98  
3,28 – 82,08  
0,039 – 0,98  
0,035 – 0,89  
3,66 – 91,60  
3,22 – 80,65  
0,039 – 0,99  
0,035 – 0,87  
2,13 – 53,29  
1,87 – 46,92  
1,73 – 43,30  
1,52 – 38,12  
1,49 – 37,47  
1,31 – 32,99  
2,13 – 53,29  
Tailoring Wool  
Trench Coats  
Banking  
change  
-
-
-
-
-
-
-
55,87  
51,81  
Free change  
Source: Dirección Nacional de Estadística, 1944, p. 30  
Official  
change  
0
Short underpants  
Foreman  
Free change  
0,032 – 0,81  
-
Official  
change  
2
,09 – 52,35  
1,91 – 47,76  
,70 – 42,53  
1,55 – 38,80  
,47 – 36,81  
Table 6. Minimum wages in Bolivia, in US dollars, 1937  
Work place  
Dayly- monthly  
2,90 - 72,53  
2,59 – 64,76  
1,55 – 38,85  
Free change  
Commercial and Industrial Sectors  
Older adults  
Official  
change  
1
Foreman Assistants  
Pawns  
-
-
Free change  
Children between 14 and 18 years old  
Official  
change  
1
Source: authors´ creation. Data come from: Owen, 1938, p. 326  
Free change  
1,34 – 33, 85  
2,09 – 52,35  
Official  
change  
2
,07 – 51,76  
1,74 – 43,60  
,16 – 29,11  
0,98 – 24,52  
Public workers.  
Zone A  
Brazil  
Free change  
1,91 – 47,76  
1,17 – 29,44  
1,07 – 26,86  
1,87 – 46,92  
1,19 – 29,97  
1,05 – 26,39  
Official  
change  
1
In the Constitution of November 10, 1937, it is observed  
the need to establish a “minimum wage capable of  
satisfying, according to each region, the normal needs  
of work” (Owen, 1938, p. 326). Commissions were  
established to propose salaries for each region and  
salaries would finally be established through an executive  
decree. Minors who work as apprentices would receive  
half the salary of an adult, while those who work in  
unhealthy conditions would receive a salary and a  
half. Any employment contract with a salary below the  
stipulated minimum wage would be null, and the worker  
could claim the difference at any time.  
Public workers.  
Zone E  
Free change  
Source: authors´ creation. Data come from: Owen, 1938, p. 325.  
Bolivia  
On June 27, 1936, the Bolivian government decreed  
minimumwagesforthepublicandprivatesectorsthrough  
percentage increases depending on the sector and the  
income recorded. us, for example, for those with less  
than 100 bolivianos per month, the salary was increased  
by 120%. For those who received 1201 bolivianos or more  
per month, they obtained a net increase of 780 bolivianos.  
Daily salaries of up to 1 Bolivian increased by 120%, while  
domestic workers who received up to 5 bolivianos per  
day obtained an increase of 80% (Owen, 1938, p. 326).  
e increase in salaries of federal civilian personnel was  
made through a law of January 13, 1936. Salaries with an  
income of less than 150 milreis, were raised to 200 milreis,  
salaries between 150 and 1500 milreis increased 40% for  
first 500 milreis, then 20% for each cent or fraction up to  
1
000 milreis, and 10% for each cent up to 1500 milreis.  
In 1937 the minimum wage was established in the  
following way: for workers in commercial and industrial  
sectors, without distinction of sex, 140 Bolivians; for  
older adults, 5 bolivianos per day; for minors between 14  
and 18 years old, 3 Bolivians. e minimum wage did not  
include the agricultural work of industries with assets less  
than 50,000 bolivianos. In 1937, the minimum monthly  
salary in US dollars, in exchange for banking, is divided  
into three sectors: in the commercial and industrial  
sector, the minimum wage is 72.53; older adults have a  
minimum wage of 64.76; and, minors had a minimum  
wage of 38.85.  
ose salaries between 1500 and 2500 milreis had a net  
increase of 300 milreis, from 2,500 to 3,000, an increase  
of 250; from 3000 to 4000, an increase of 200. In 1936, the  
monthly minimum wage in US dollars, in free exchange,  
is divided according to the income prior to 1936 and  
according to each region. e lowest minimum wage is $  
1
7.50 while the highest is $ 278.40.  
Table 7. Exchange rate: milreis in US cents, 1929-1937  
1
929  
1930 1931 1932 1933 1934 1935 1936 1937  
Official change  
11,29  
-
9,61  
-
6,20  
-
7,63  
-
8,60  
-
8,19  
6,81  
3,89  
5,51  
8,70  
8,70  
-
-
Free change  
Source: Dirección Nacional de Estadística, 1944, p. 30  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
KAIRÓS, REVISTA DE  
27  
FACULTAD DE  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
Table 8. Minimum wages in Brazil, 1936  
Official  
change  
1
,53 – 38,40 0,76 – 19,08 0,77 – 19,38 0,77 – 19,08  
,62 – 15,71 0,57 – 14,28 0,51 – 12,97 0,58 – 14,73  
Married or  
heads of  
family.  
Dayly- monthly US  
dollars  
Before 1936 (Milreis)  
Below 150  
1936 (Milreis)  
Free  
change  
0
200  
210  
0,69 - 17,40  
0,73 – 18,27  
3,82 – 95,70  
6,26 - 156,60  
9,57 - 239,25  
11,13 - 278,40  
Official  
change  
Minors, over  
0,51 – 12,80  
0,20 – 5,23  
0,25 – 6,36  
0,19 – 4,76  
0,26 – 6,46  
0,17 – 4,24  
0,26 – 6,46  
0,19 – 4,91  
1
1
1
2
3
50  
65s, and  
people with  
disabilities  
000  
500  
500  
000  
1100  
1800  
2750  
3200  
Free  
change  
Minimum  
wage by  
geographical  
area (300  
pesos)  
Official  
change  
1,22 - 30,72  
0,50 - 12,57  
0,61 - 15,27  
0,62 - 15,51  
0,62 - 15,51  
Free  
change  
0,45 - 11,43  
0,71 - 17,81  
0,53 - 13,33  
0,81 - 20,36  
0,60 - 15,24  
0,41 - 10,38  
0,72 - 18,09  
0,48 - 12,11  
0,82 - 20,68  
0,55 - 13,84  
0,47 - 11,79  
0,72 - 18,09  
0,55 - 13,75  
0,82 - 20,68  
0,62 - 15,72  
Source: authors´ creation. Data come from: Owen, 1938, p. 326  
Minimum  
wage by  
geographical  
area (350  
pesos)  
Official  
change  
1
0
1
,43 - 35,84  
,58 - 14,66  
,63 - 40,96  
Free  
change  
Chile  
Minimum  
wage by  
geographical  
area (400  
pesos)  
Official  
change  
e labor code of May 13, 1931, regulated the organization  
Free  
change  
of commissions made up of three representatives of  
employers and three of workers by industry to enact  
minimum wages. In case of conflicts, these would be  
resolved by the Labor Inspector General (Vergara, 2014).  
0,67 - 16,76  
Source: authors´ creation. Data come from: Owen, 1938, p. 327  
e minimum wages of the nitrate industry were enacted  
Ecuador  
on January 8, 1934 and stipulated that the salaries of  
unmarried workers be 10 pesos per day, and that of  
married workers or heads of families be 15 pesos per  
day. e minimum wage for children under 18, over 65  
and for people with physical or mental disabilities can be  
reduced to 50% of the minimum wage.  
In the Ecuadorian case, there was no minimum wage  
legally established until 1936, and this non-fixing of  
a minimum wage became one of the claims in labor  
disputes. e workers’ conflict of the “La Fabrica de la  
Internacional” factory, included in the Report to the  
Nation of the Ministry of Government and Social Security  
of 1934, mentions as one of the initial claims “that the  
minimum wage of $ 1.50 be established in eight hours  
of work” (Baquerizo Moreno, 1934: 74). In addition, in  
the same report, the ministry recommends, through its  
Minister, Mr. Rodolfo Baquerizo Moreno, that “in order  
to put into practice the desire to fix wages, it would be  
convenient for the Honorable Congress to issue a Special  
Law on the individual, previous the profound study of the  
diverse zones and customs of the country” (Baquerizo  
Moreno, 1934, p. 74).  
In 1937 the minimum wage was established for the private  
sector, which could be 300, 350 or 400 pesos per month,  
depending on the cost of living by geographical area. On  
the other hand, in 1937, the municipality of Santiago  
approved minimum wages for its workforce, establishing  
an amount of 12 pesos per day for temporary staff and  
1
3 pesos for permanent staff. From 1934 to 1937, the  
monthly minimum wage in US dollars, in free exchange,  
fluctuated from 15.72 (geographical area, 400 pesos in  
1
937) to 4.24 (minors in 1936). Apart from the group of  
minors, seniors and people with disabilities, the lower  
limit of the minimum wage is 8.65 (single in 1936).  
e minimum wage in Ecuador was enacted in 1936  
through the Organic Labor Law, which established the  
legal basis for minimum wages throughout the country  
Table 9. Exchange rate: Chilean pesos in cents, 1929-1937  
1929  
1930  
1931  
1932 1933 1934  
1935 1936  
1937  
(
Official Register No. 205, 1936). e first registration  
Official  
change  
1
2,09 12,10  
12,07 6,03  
9,60  
3,80  
10,24 5,09  
5,17  
3,46  
5,17  
was made as an agreement between the parties involved,  
which is presumed to be an agreement between traders,  
workers and government. e first calculation of the  
minimum wage was divided into two sections, namely:  
manual worker and agricultural worker.  
Free  
change  
-
-
-
-
4,19  
3,81  
3,93  
Source: Dirección Nacional de Estadística, 1944, p. 30  
e minimum wages in Ecuador for agricultural workers  
Table 10. Minimum wages in Chile, in US dollars, 1934-1937  
and private employees were established through an  
executive decree, of President Federico Páez, on February  
4, 1937. e minimum wage for a manual worker over 18  
years was one sucre per day in the interior of the country,  
and two sucres in the coastal region. In Quito, the  
minimum was one and a half sucre. Agricultural workers  
over the age of 18 have the right to earn 0.60 sucres in  
1934  
1935  
1936  
1937  
Worker  
Dayly-  
monthly  
Dayly-  
monthly  
Dayly-  
monthly  
Dayly- monthly  
Official  
change  
1,02 – 25,60 0,50 – 12,72 0,52 – 12,92 0.52 – 12,92  
Single  
Free  
0,41 – 10,47  
0,38 – 9,52  
0,34 – 8,65  
0,39 – 9,82  
change  
Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
2
8
KAIRÓS, REVISTA DE  
FACULTAD DE  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
the interior and 1.20 sucres in the coastal region. Men  
under the age of 18 and women of any age who work as  
manual laborers or agricultural workers would receive  
a minimum of two thirds of the wages described. is  
decree did not include domestic workers (Pan American  
Union, 1937, p. 416).  
thirties, workers, legally, received several important  
benefits: eviction, compensation for untimely separation,  
maximum duration of work and rest, prohibition to work  
under fourteen years, etc. is current legal context can  
be presumed as a generalized work environment in public  
works, however, it is not a generalized environment in the  
private sector. No reports have been found that evidence  
the applicability of labor laws, which is understandable  
given the high rate of informality, with most of the  
population living in community barter systems or in labor  
systems based on huasipungo. us, with the system of  
labor legality in force in the 1920s and 30s, it is likely that  
it has been applied throughout the public sector and to a  
lesser extent in the industrial sector.  
e minimum wage in Ecuador is divided in relation to  
labor (manual workers and agricultural workers) and in  
relation to geographical location (sierra, costa, Quito).  
us, from 1936 to 1937, the monthly minimum wage in  
US dollars, in free exchange, fluctuated from 4.77 (manual  
worker from the coast, 1936) to 1.17 (agricultural worker  
from the highland region, 1937).  
As part of working conditions is the establishment of  
the minimum wage, which rules in Ecuador as a general  
and mandatory rule from 1936. During the decade of the  
thirties, some Latin American countries implemented  
political and legal processes for the establishment of the  
minimum wage. A trend can be noted in the establishment  
of minimum wages: the minimum wage was not unique  
but presented an upper limit and a lower one depending  
on zones and regions.  
Table 11. Exchange rate: sucres in cents, 1929-1937  
1929  
1930  
1931  
1932  
1933  
1934  
1935 1936  
1937  
Official  
change  
20,00  
20,00  
20,00  
16,00 16,77  
8,33  
9,52 9,55  
7,22  
Source: Dirección Nacional de Estadística, 1944, p. 30  
Table 12. Minimum wages in Ecuador in US dollars, 1936-1937  
Worker  
1936  
1937  
It is important to note the deflationary trend until 1932  
Dayly- monthly  
Dayly- monthly  
Dayly- monthly  
(
Ecuador) and 1931 (Latin America) was common to the  
Highlands  
Cost  
0,095 – 2,38  
0,191 – 4,77  
0,14 – 3,58  
0, 072 – 1, 80  
0,144 – 3,61  
0,108 – 2,70  
Latin American region. Af er these years, some countries  
show constant fluctuations (Naranjo, 2018). is  
phenomenon is appreciable taking into account that the  
Latin American region leaves the gold standard during  
the thirties (Eichengreen & Temin, 2000), and therefore  
the inflationary fluctuations were evident because each  
government takes measures to increase or decrease the  
money supply according to its own expertise.  
Manual  
worker  
Quito  
Highlands  
Cost  
0,062 – 1,55  
0,114 – 2,86  
0,046 – 1,17  
0,086 – 2,16  
Agricultural  
worker  
Source: authors´ creation. Data come from: Pan American Union, 1937,  
p. 416  
References  
e minimum wages of the Latin American region help  
to visualize the possible minimum monthly costs for  
the maintenance of a person. In the Ecuadorian case  
in the labor sector, these monthly minimums are 25  
sucres per month in the interior, 50 sucres in the coastal  
region, and 37.5 in Quito; in the agricultural sector, 15  
sucres per month in the Mountain range, and 30 sucres  
in the Coast. On average, the monthly minimum for the  
maintenance of a person was 31.5 sucres. Af er seeing the  
working conditions and the evolution of the minimum  
wage, the price evolution will be studied next through the  
price index, so that it can be used as a deflator to convert  
nominal wages, presented in the previous chapter in real  
wages.  
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Albornoz, M. (1931). Informe del Ministro de Go-  
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Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec  
KAIRÓS, REVISTA DE  
29  
FACULTAD DE  
CIENCIAS POLÍTICAS Y ADMINISTRATIVAS  
CIENCIAS ECONÓMICAS, JURÍDICAS Y ADMINISTRATIVAS  
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a la Nación 1933-1934 (5), 117-124.  
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0. Drinot, P., & Knight, A. (2014). e Great Depression  
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2. Feiker, F. (1931). Economic and Financial Conditions  
in Ecuador. U.S. department of Commerce, Bureau  
of Foreign and Domestic Commerce. Washington:  
United States Government Printing Office.  
22. Pan American Union. (1937). Minimum Wage Leg-  
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3. Guerrero, V. (1937). Informe que el Sr. Teniente Cor-  
onel S. Virgilio Guerrero presenta a la H. Asamblea  
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prenta de la Caja del Seguro de E.P. y O.  
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24. Registro Oficial N.205. (30 de junio de 1936). De-  
creto Ejecutivo. Quito, Ecuador: Imprenta Nacional.  
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Revista Kairós, Vol. 2 (2019) No. 3, pp. 21-29, Julio - Diciembre, Universidad Nacional de Chimborazo, Riobamba-Ecuador - ISSN No. 2631-2743  
http://kairos.unach.edu.ec