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Title page
Contents
Abstract/Résumé 4
Labour market challenges and opportunities 8
Boosting labour market prospects of women 22
Labour market reforms to create more and better formal jobs 25
Better targeting activation policies to tackle job displacement 36
Aligning the supply of skills with evolving labour market needs 38
References 54
Table 1. Statistics on contributions and disbursements of the unemployment insurance system 33
Table 2. The unemployment benefit system in Chile 35
Figure 1. The demographic window is open 7
Figure 2. Rapid economic catch-up came on the back of growth in productivity and exports 8
Figure 3. Employment in sectors with higher technological sophistication and knowledge intensity increased 9
Figure 4. The share of jobs at high risk of automation is elevated 10
Figure 5. The digital revolution will alter the set of jobs available 11
Figure 6. The employment rate is low 12
Figure 7. Estimated sensitivities of unemployment and employment to GDP growth 14
Figure 8. Labour market dynamics following a shock to aggregate activity 15
Figure 9. Despite trending downwards, informality is high 17
Figure 10. Unemployment has been persistently high, particularly for women 18
Figure 11. Many youths are unemployed or neither in employment, education or training 19
Figure 12. Low employment ratios of older workers reflect past incentives to early retirement 20
Figure 13. Positive net immigration flows increase the size of the population 21
Figure 14. Labour participation is low as few women join the labour force 23
Figure 15. Employment protection regulations are stringent and labour taxation is high 26
Figure 16. Minimum wages are relatively high 28
Figure 17. Income across regions varies with the share of agricultural sectors and the level of educational attainment 29
Figure 18. Severance pay is relatively high while the generosity of unemployment benefits is low 31
Figure 19. Educational attainment has improved but gaps remain 38
Figure 20. The skill mismatch is large and over-qualified workers receive lower wages 39
Figure 21. Study fields of graduates do not match the needs of labour markets 40
Figure 22. Unfilled vacancies increase despite the elevated unemployment rate 41
Figure 23. There is room to improve educational outcomes further 42
Figure 24. Private spending on education is high 43
Figure 25. Education spending is tilted towards tertiary education 43
Figure 26. The unemployment rate of tertiary graduates is elevated 45
Figure 27. There is room to increase the number of graduates from upper secondary education 47
Figure 28. Graduates with work experience do better in the labour market than those without 48
Figure 29. Educational attainment of adults has improved but skills lag behind 49
Figure 30. An innovative digital tool to compare job market prospects of different study fields 50
Figure 31. Participation in lifelong learning is low 51
Boxes
Box 1. Cyclical unemployment and employment sensitivities 13
Box 2. Informality remains high 16
Box 3. Refugees from the Syrian civil war in the Turkish labour market 21
Box 4. Supporting formal employment of mothers: some examples of ongoing projects 24
Box 5. Income per capita varies considerably across regions 28
Box 6. Passive labour market policies in Türkiye 33
Box 7. Combining individual unemployment savings accounts with a collective fund: the case of Chile 34
Box 8. Making severance pay portable: the cases of Austria and Brazil 35
Box 9. Career gate: providing merit-based job and internship opportunities in the public sector 46
Box 10. The UNI-VERI project: Evaluating labour market prospects of tertiary degree programmes 50
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