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The Chilean Labor Market: Job Creation, Quality, Inclusiveness, and Future Challenges

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  • Parro, Francisco
  • Reyes, Loreto

Abstract

This paper analyzes recent labor market developments in the Chilean economy. The evidence shows a booming labor market with strong job creation since 2010. Most of the jobs created during the past three years are quality jobs—that is, jobs with a written contract and whose employers have made the corresponding payments toward pensions, healthcare, and unemployment insurance. We show that a combination of economic growth and specific policies seems to be the driving force behind the strong creation of quality jobs. Additionally, we show that the rapid job creation has been inclusive and constitutes one of the potential explanations for the fall in income inequality observed during the past three years. However, a further reduction in income inequality remains an important challenge for the future. Greater access to a quality education for vulnerable groups is the key to achieving that goal.

Suggested Citation

  • Parro, Francisco & Reyes, Loreto, 2013. "The Chilean Labor Market: Job Creation, Quality, Inclusiveness, and Future Challenges," MPRA Paper 50755, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50755
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    References listed on IDEAS

    as
    1. Gallego, Francisco A., 2012. "Skill Premium in Chile: Studying Skill Upgrading in the South," World Development, Elsevier, vol. 40(3), pages 594-609.
    2. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 2021. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 8, pages 163-234, World Scientific Publishing Co. Pte. Ltd..
    3. Correa, Juan & Lorca, Miguel & Parro, Francisco, 2014. "Capital-Skill Complementarity: Does capital disaggregation matter?," MPRA Paper 61285, University Library of Munich, Germany.
    4. Francisco Parro, 2012. "International Evidence on the Gender Gap in Education over the Past Six Decades: A Puzzle and an Answer to It," Journal of Human Capital, University of Chicago Press, vol. 6(2), pages 150-185.
    5. Juan A. Correa & Francisco Parro & Loreto Reyes, 2015. "Self-selection in the market of teachers," Applied Economics, Taylor & Francis Journals, vol. 47(13), pages 1331-1349, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Labor Markets; Inequality; Skills;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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