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Encouraging Labour Force Participation in Chile

Author

Listed:
  • Dante Contreras

    (United Nations Development Programme)

  • Luiz de Mello

    (OECD)

  • Esteban Puentes

    (OECD)

Abstract

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. This paper relates to the 2007 Economic Survey of Chile (www.oecd.org/eco/surveys/chile). Encourager l'activité au Chili Le taux d'activité du Chili est faible par comparaison avec la plupart des pays de la zone OCDE, surtout parmi les femmes et les jeunes. Dans le cas des femmes, l'offre de main-d'oeuvre a augmenté régulièrement avec le temps dans les classes d'âge de forte activité et au-delà, tandis qu'elle restait relativement stable chez les hommes. En ce qui concerne les jeunes, les taux d'activité sont orientés à la baisse, principalement du fait des progrès de la scolarisation, surtout chez les hommes, alors qu'ils restent assez faibles et stables chez les femmes. Le principal enjeu dans ce domaine est de renforcer l'offre de travail des femmes, à la fois dans les classes d'âge de forte activité et chez les jeunes, afin de mieux utiliser le facteur travail en le mettant au service de la croissance à long terme. Cela suppose essentiellement que l'on supprime du code du travail les contraintes qui pèsent sur l'affectation du temps de travail et que l'on développe l'offre de services de garde d'un coût abordable pour les mères de jeunes enfants. Le niveau d'instruction étant l'un des principaux déterminants de l'activité, des mesures qui tendraient à renforcer l'accumulation de capital humain dans l'ensemble de la population auraient également leur utilité. Ce document se rapporte à l’Étude économique du Chili 2007 (www.oecd.org/eco/etudes/chili).

Suggested Citation

  • Dante Contreras & Luiz de Mello & Esteban Puentes, 2008. "Encouraging Labour Force Participation in Chile," OECD Economics Department Working Papers 608, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:608-en
    DOI: 10.1787/242103851837
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    Citations

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    Cited by:

    1. Bentancor, A. & Modrego, F. & Berdegué, J., 2008. "Crecimiento y Distribución del Ingreso como Determinantes de la Reducción de la Pobreza en Comunas Rurales de Chile," Working papers 014, Rimisp Latin American Center for Rural Development.
    2. Francisco Parro G. & Loreto Reyes R., 2019. "Economic growth and the Chilean labor market," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 22(2), pages 070-095, August.
    3. Bronfman, Javier, 2014. "Measuring Vulnerability to Poverty in Chile Using the National Socio Economic Characterization Panel Survey for 1996, 2001, 2006," MPRA Paper 62689, University Library of Munich, Germany.

    More about this item

    Keywords

    accueil préscolaire; child care; Chile; Chili; garde d'enfants; labour force participation; pre-school education; taux d'activité;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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