Getting Skills Right: Chile

image of Getting Skills Right: Chile

This study analyses the relationship between skills and labour market outcomes in Chile with a specific focus on disadvantaged groups: youth, women and the low-skilled. It examines the proficiency of the Chilean population in literacy, numeracy and problem solving in a technological-rich environment and disentangles the relationship between proficiency and labour market outcomes in Chile. The study also devotes significant attention to the demand for skills, by describing the use of skills at work in Chile and identifying its key determinants, as well as assessing the extent of skills mismatch and its implications for individuals. Throughout the study, differences between sociodemographic groups are highlighted to investigate the roots of labour market disadvantage.



Executive summary

The Chilean economy is gradually recovering from a period of slow growth due to sharply lower commodity prices. Economic growth is expected to strengthen to 2.8% in 2018 thanks to improved external demand and investment. As a result, the unemployment rate is projected to stabilise and wage growth to pick up. The overall unemployment rate remains close to the OECD average (6.5% in Chile v. 6.3%). Yet, participation in the labour market is five percentage points below the OECD average, with very marked differences for women (8 percentage points below average) and youth (12 percentage points below average). This is reflected in relatively low employment rates for these sub‑groups. While participation of the low-educated to the labour market is high in international comparison, the quality of jobs is frequently poor: informality is common and Chile has the highest share of temporary workers in the OECD.


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