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OECD Reviews of Labour Market and Social Policies: Chile 2009

image of OECD Reviews of Labour Market and Social Policies: Chile 2009
This report analyses in detail the implications of recent developments in Chile's labour market and social policy and considers the available policy options from the perspective of OECD countries’ experience.

The report finds that Chile has enjoyed rising living standards over two decades of strong economic growth. The incidence of poverty is now much lower and there is better access to adequate housing, education and healthcare. Nevertheless, Chile’s income distribution remains disturbingly unequal by OECD standards. This is partly due to Chile’s a relatively low employment rate, especially for women, but it also reflects a segmented labour market, where much of the recent job creation has occurred in relatively low-productive sectors. Moreover, despite the existence of an internationally renowned pension programme, Chile’s social protection system as a whole has still a relatively long way to go before reaching the standards of developed countries in terms of effective coverage and capacity to assist needy households.  Chilean policy makers have begun to develop and implement a series of ambitious reforms, intended to promote the twin goals of work and equity.

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Towards More Equal Job Opportunities

To create more and better jobs, Chile needs to pursue its recent efforts to develop a strategy for work and equity. While partly successful, this policy endeavour is facing many obstacles, including not only limited resources and administrative capacity but also a weak social dialogue and many conflicting interests in a segmented labour market. The OECD Reassessed Jobs Strategy and the international experience of policy compromises for “flexicurity” are therefore relevant. This chapter considers the principal issues of labour market policy in Chile from such a perspective. 

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