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The determinants of labour force participation and employment in Chile

Author

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  • D. Contreras
  • L. de Mello
  • E. Puentes

Abstract

Chile's labour force participation is low in comparison with Organization for Economic Co-operation and Development (OECD) and Latin American countries on average, especially among females and youths. This article estimates the main determinants of labour supply and employment for prime-age individuals and youths using data from the National Household Survey (CASEN) for 1990, 1996 and 2003. Educational attainment is found to be a powerful predictor of labour supply and employability for both males and females. The number of young children in the household is a strong deterrent to female participation, both for prime-age and young women. Changes in labour supply and employment during 1990 and 2003 are decomposed using the probit estimations. The results suggest that structural changes in the economy were the main determinants of changes in participation among prime-age individuals, but the converse is true for changes in employment, which depended predominantly on shifts in individual characteristics.

Suggested Citation

  • D. Contreras & L. de Mello & E. Puentes, 2011. "The determinants of labour force participation and employment in Chile," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2765-2776.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2765-2776
    DOI: 10.1080/00036840903373303
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    References listed on IDEAS

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    1. Luiz de Mello, 2008. "Managing Chile's Macroeconomy during and after the Copper Price Boom," OECD Economics Department Working Papers 605, OECD Publishing.
    2. Estelle James & Alejandra Cox Edwards, 2005. "Do Individual Accounts Postpone Retirement: Evidence from Chile," Working Papers wp098, University of Michigan, Michigan Retirement Research Center.
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    Cited by:

    1. Dante Contreras & Agustin Hurtado & M. Francisca Sara, 2012. "La Excepción Chilena y las Percepciones de Género en la Participación Laboral Femenina," Working Papers wp374, University of Chile, Department of Economics.
    2. José Rodriguez & Gabriel Rodriguez, 2012. "Explaining the Transition Probabilities in the Peruvian Labor Market," Documentos de Trabajo / Working Papers 2012-334, Departamento de Economía - Pontificia Universidad Católica del Perú.
    3. Tudorel ANDREI & Andreea MIRICĂ & Daniel TEODORESCU & Elena-Doina DASCĂLU, 2016. "Main Determinants of Labor Force Participation in the case of Metropolitan Roma People," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 144-163, September.
    4. Nor Amna A’liah Mohd Nor & Rusmawati Said, 2014. "Malaysia's Labour Force Participation in Rural and Urban Areas," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(10), pages 1461-1472, October.

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