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• Basic statistics of Chile, 2014

  This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.The Economic situation and policies of Chile were reviewed by the Committee on 4 November 2015. The draft was revised in the light of the discussion and given final approval as the agreed report of the whole Committee on 19 November 2015.The Secretariat’s draft report was prepared for the Committee by Sean Dougherty and Eduardo Olaberria, under the supervision of Patrick Lenain. Damien Azzopardi provided statistical research assistance, and Brigitte Beyeler provided administrative support. The Survey also benefitted from contributions from Bert Brys, Martin Fernandez-Sanchez, Guillermo Montt, Ira Postolachi, Diana Toledo Figueroa and Richard Yelland.The previous Survey of Chile was issued in October 2013.

• Executive summary

  OECD Economic Outlook 98 database.

• Assessment and recommendations

  The quality of life of Chileans has improved significantly over the last few decades, and along several dimensions of well-being it approaches the OECD average, notably jobs and earnings, work-life balance and health (, Panel A). The increase in average disposable income and reduction in poverty (Panel B) has been among the most rapid in the OECD, as a consequence of economic reforms, such as trade and investment liberalisation, and the sound macroeconomic policies that have controlled inflation and smoothed economic cycles, reducing uncertainty and encouraging investment. Continued progress will require further economic transformation towards a more knowledge-based and innovative economy, with more firms capable of participating and upgrading their activities in global value chains. Further improvements in well-being will also need to address the sizable gaps that remain in many well-being indicators across social groups and between sexes ().

• Progress in structural reform

  The objective of this annex is to review action taken since the previous Survey (October 2013) on the main recommendations from previous Surveys, which are not reviewed and assessed in the current Survey.

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• Expand / Collapse Hide / Show all Abstracts Thematic chapters

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  • Bringing all Chileans on board

    The Chilean economy has had an extraordinary performance over the last decades with strong growth and declining poverty rates. However, the economy is now slowing at a time when inequality remains very high, making future social progress challenging. This chapter discusses how to achieve greater social inclusiveness against the background of weaker medium-term growth. First, it argues that Chile needs to increase income redistribution through its tax and transfer system towards levels prevailing in other OECD countries. Although existing social transfers are effective in combatting poverty, their size remains small and many households at the bottom of the ladder are not reached by them. Second, the chapter argues that labour earnings should be less disparate, as they explain around 70% of income inequality. This should be done by updating labour legislation, but also by empowering low-skill workers and enabling them to increase their productivity, through the acquisition of adequate skills. Finally, focus should be placed on closing wide gender gaps.

  • Better skills for inclusive growth

    Improving education and skills is the linchpin to reduce income inequality and boost productivity growth. This chapter argues that to improve, and make better use of, the skills of the labour force, Chile could gain a lot from a comprehensive and consistent Skills Strategy along three pillars: developing, activating and using skills effectively. Chile has made tremendous progress over the last decades attracting more students to the education system. Yet, educational outcomes remain below OECD standards, and are strongly linked to students’ socio-economic status. Improving the quality and equity of education would help achieve stronger productivity growth and make Chile a more inclusive country. Therefore, Chile should set the goal of attaining universal skills by 2030. Reaching this goal requires investing more in early childhood education, making schools more inclusive and reshaping teacher careers. Chile also needs to improve access to quality tertiary education for students from medium and low socio-economic backgrounds. Finally, in terms of activating and using skills effectively, a key goal should be to reduce skill mismatch, which contributes to low productivity growth. This requires more flexible labour markets, investing more in vocational education and training, and promoting the participation of more women in the fields of engineering and computer science.

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