This dissertation has as objective to determinate the effect of the size and technological
level of firms on the underemployment of Ecuador. To achieve this objective was built a
data bank, principally, with information of the National Survey of Employment,
Unemployment and Underemployment (ENEMDU) for the period between the years 2007
and 2015. In addition, was used information of the Central Bank of Ecuador,
corresponding to the Table of Supply Utilization (TOU) and the Classification of Industries
in the National Accounts (CICN). Subsequently, was applied a probit model with the
collected information and were obtained the results of the research. Thus, it was found that
the size and technological level of the firms have an inverse relationship with the
probability that a person be underemployed, showing that working in a firm of small,
medium and large size, decreases this probability by 12%, 18% and 20% respectively,
compared to work in a firm of micro size. While working on an economic activity with a
medium and high technological level, decreases the probability of being underemployed
13% and 16% respectively, compared to work in an economic activity with a low
technological level.