The OECD advises Chile to take actions to improve the efficiency of its labor market, including expanding the participation rate of women and reducing dismissal compensations. The organization also recommends supporting research and development (R+D) to promote productivity.

The OECD report “Going for growth”, analyses Chile’s progresses, as well as the areas where it must keep on improving.

During the past few years, income inequality has been reduced, but it remains one of the highest among the organization’s members, and poverty indexes still are elevated.

The OECD acknowledges progress in terms of quality and equality in the education system, and praises measures that favor competitiveness and productivity. The organization prompts Chile to fully apply the reforms approved, foster areas such as engineering and basic sciences, and strengthen professional education, adapting it to the evolution of the labor market.

According to the report, the country must also work to improve competition, which demands reducing the complexity of administrative procedures for business and simplify regulations in certain sectors.

As regards the labor market, the OECD advises on reducing dismissal compensations to support the creation of formal employment and prevent segmentation.

Adopting policies that promote women’s participation in the labor market and expand the unemployment insurance would improve the efficiency of the labor market and contribute to growth, according to the report. It specifically recommends quickly expanding the childcare services’ network.

The OECD revises measures approved to promote R+D investments and suggests taking new steps, for example, by going for the cooperation between the public and private sector, and granting the government’s public support to the development of specialists in certain technological areas where they are needed.