The (In)Flexibilities of the Chilean Labor Market

Abstract

For several years now, with a certain regularity (and, to be more precise, close to election time), the need to reform some labor market institutions has been put on the table in order to “make the economy more flexible” and raise the level of employment. In the public imagination, “flexibility” is associated with greater precariousness, more benefits for employers, and lower wages for workers. Apart from the subcontracting law, little has been discussed in Congress about the benefits and/or problems associated with certain institutions of the Chilean labor market (severance payments, contracting arrangements, minimum wages, special regimes). Continue reading...