Making better use of labour resources

November 2005
OECD Economic Surveys: Chile;Nov2005, Vol. 2005 Issue 19, p115
Country Report
Country Report
To sustain a high rate of GDP growth over the medium term, Chile needs to improve the functioning of its labour market. This chapter discusses options for reform in this area. The 2003 Survey found that Chile had greater potential for increasing labour supply than most OECD economies, having a relatively young population and low employment/population ratios for women and youths. An increase in labour supply could be achieved by relaxing restrictions on the duration of temporary contracts and the allocation of working time for full-time workers, as well as by improving options for childcare and pre-school education. Lower productivity accounts for most of Chile's income gap relative to the OECD area. To bridge this gap, human capital accumulation could be encouraged for those already in the labour market by improving the efficiency of labour training at the enterprise level, in addition to continuing to raise the quality of formal education.


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