IDEAS home Printed from
   My bibliography  Save this paper

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


  • Parro, Francisco
  • Reyes, Loreto


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

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    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. Correa, Juan & Lorca, Miguel & Parro, Francisco, 2014. "Capital-Skill Complementarity: Does capital disaggregation matter?," MPRA Paper 61285, University Library of Munich, Germany.
    3. 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.
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Labor Markets; Inequality; Skills;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50755. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.