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2007 OECD Economic Surveys: Chile 2007

image of OECD Economic Surveys: Chile 2007

This 2007 edition of OECD's periodic survey of Chile's economy focuses on key challenges being faced including managing the economy after the copper price boom; efficiency in health care, education and housing services; informality; and raising labour force participation of women and youth.

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Encouraging labour force participation for women and youths

Chile’s labour force participation is low by comparison with most countries in the OECD area, especially among females and youths. In the case of women, labour supply has risen steadily over time for prime-age and older individuals, against a background of relative stability for men. With regards to youths, participation rates are trending down, primarily as a result of rising school enrolment, especially for males, while remaining fairly low and stable over the years for young females. The main policy challenge in this area is to raise female labour supply further, for both prime-age individuals and youths, as a means of making a better use of labour inputs in support of long-term growth. This can be achieved essentially by removing provisions in the labour code that constrain the allocation of working time and by improving access to affordable child care for mothers with young children. Policies aimed at fostering human capital accumulation for the population as a whole would also contribute, because educational attainment is one of the most powerful determinants of labour force participation.

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