Publications & Documents

This study analyses the relationship between skills and labour market outcomes in Chile with a specific focus on disadvantaged groups: youth, women and the low-skilled. It examines the proficiency of the Chilean population in literacy, numeracy and problem solving in a technological-rich environment and disentangles the relationship between proficiency and labour market outcomes in Chile. The study also devotes significant attention to the demand for skills, by describing the use of skills at work in Chile and identifying its key determinants, as well as assessing the extent of skills mismatch and its implications for individuals. Throughout the study, differences between sociodemographic groups are highlighted to investigate the roots of labour market disadvantage.

Chile’s energy policy has evolved dynamically in recent years. In response to changes in the domestic and international environment, significant institutional and policy reforms as well as major infrastructure projects have been carried out. The National Energy Policy 2050 was adopted in 2015, following an exceptionally inclusive public consultation. The electricity sector, in particular, has developed quickly. This second review of Chile’s energy policies by the International Energy Agency finds that the country has emerged as a world-class destination for solar and wind energy developers. New legislation encourages investment in generating capacity across the electricity sector. The expanded role of the state in energy planning has helped to boost project development, especially in electricity transmission. The country now also has an interconnected national electricity system. Integrating growing shares of variable renewable energy requires a flexible power system. More transmission infrastructure, storage, and demand-side response are needed. The government should now ensure that the electricity market design and infrastructure facilitate the integration of solar and wind power. By exploiting its vast renewable energy potential, Chile can help reduce electricity prices and dependency on fuel imports. Renewables and energy efficiency can also help limit carbon emissions and air pollution. Chile should make more use of mandatory energy performance standards for products, equipment, vehicles and buildings. Efficient and clean use of firewood and alternative heating technologies can be supported through policies, regulation and financial incentives. Energy and climate aspects should also be an integral part of the long-term policies for transport and urban development.

Chile is a relatively stable, well-connected, open economy. Over the last decade the country has managed to increase its participation in global value chains and to export new products. However, its knowledge base is limited, productivity is stagnating and economic opportunities are still concentrated in a few places and limited to a few activities and firms. Today’s global production revolution offers a window of opportunity for Chile to 'update' its growth model to become more inclusive and sustainable. The Production Transformation Policy Review of Chile (PTPR) uses a forward-looking framework to assess the country readiness to embrace change, with perspectives on solar energy, mining and agro-food, and identifies priorities for future reforms. This review is the result of government-business dialogue and rigorous analysis. It benefitted from peer learning from Sweden, Germany and the Emilia Romagna Region in Italy through the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development.

Chile’s planning and governance framework has supported the roll-out of high quality and efficient infrastructure that has been a key enabler of the country’s rapid development over the past two decades. However, changing circumstances such as climate change, decentralisation and a greater focus on social and territorial equity now require a change in how infrastructure needs are identified and addressed. This review examines Chile’s infrastructure stock and governance standards in light of the country’s 2030 growth agenda and OECD benchmarks, and sets out how such change can be achieved, with a special focus on transport and water infrastructure.