Indigenous people in Ecuador are most likely to be disadvantaged and live in poverty. This paper reports on the findings of an econometric analysis which explores the extent to which lower educational attainment and labor market discrimination contribute to these disparities. The analysis utilizes a proportional hazard regression model to examine which factors raise the probability of early school departure. It also employs a classic regression model to explore the relationship between low educational attainment and earnings, together with an Oaxaca decomposition which parses out the extent to which earning differentials can be attributed to differences in human capital or to discrimination.