OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Policies for Making the Chilean Labour Market More Inclusive

Economic growth and recent policy reforms have increased employment and reduced overall poverty in Chile. Yet there are some groups that remain at the margins of the labour market and could benefit from and contribute more to growth. Women and young people have entered the labour force in greater numbers, but their participation rates remain low compared to most OECD and Latin American countries. The participation of women in the labour market is held down by economic, cultural and regulatory barriers. For youth, poor basic skills acquired through compulsory education and the weak linkages between secondary education and job related skills often limit their employment prospects. Among lowskilled workers, a high minimum wage and strict employment protection pose a barrier to employment. At the same time, education and training policies do not sufficiently reach those with poor skills and the public employment services lack the capacity to deliver high quality job-search services. The paper discusses a number of policies that could help to make the Chilean labour market more inclusive and broaden the benefits of growth. These include expanding childcare, promoting a more flexible labour market and strengthening education and skills policies, among others. This Working Paper relates to the 2013 OECD Economic Survey of Chile (www.oecd.org/eco/surveys/economic-survey-chile.htm).


Keywords: low-skilled workers, youth employment, Chile, female employment, labour market policies
JEL: J24: Labor and Demographic Economics / Demand and Supply of Labor / Human Capital; Skills; Occupational Choice; Labor Productivity; J3: Labor and Demographic Economics / Wages, Compensation, and Labor Costs; J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure; J16: Labor and Demographic Economics / Demographic Economics / Economics of Gender; Non-labor Discrimination; J1: Labor and Demographic Economics / Demographic Economics; J7: Labor and Demographic Economics / Labor Discrimination
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