Chile is the country with the highest income inequality in the OECD – RPP News

Chile is the country with the highest income inequality of the 18 States of the Organization for Economic Cooperation and Development (OECD), in a report that states child poverty, informal jobs and gender inequality among the most pressing problems of the Chilean labor market.

The income gap between the poorest in 2013 the richest 10% and 10% was 27 to 1.

If inequality is calculated based on the Gini coefficient, specifically designed to measure the wage gap, Chile is the most unequal of the “club of rich countries” country.

“Since the mid-2000s, inequality has fallen one percentage point in Chile. Although there is a negligible improvement is insufficient to bring Chile group most unequal countries in the OECD,” points that organization.

The report notes that the improvement in Chile since the mid-nineties to early twenty-first century has been lower than in other Latin American countries such as Peru, Mexico, Brazil and Argentina.

Also in the section on child poverty OECD recommends that Southern Cone country to design policies to correct the relative poverty, defined as those still working do not reach a level of income of over 50% of the average national.

“The relative poverty of Chile stands at 18%, compared with 11.5% of the OECD average” and “children are the age group with the highest poverty, 23.5% versus 13.3% average OECD “ said that organization.

Child poverty has also negative effects on academic results and later, in the performance of the labor market, which “may lead to an entrenchment of poverty and inequality in future generations,” said the study.

Another of the points that Chile should monitor , again according to the OECD analysis, are the large proportion of workers with “informal” jobs (20% of the population) and gender inequality, since women are 23% less likely to work than men (vs. 12% average for all OECD).

“Most women who are not in the labor market have unpaid work housewife. As a result, women have much lower income and considerably lower pensions than men, “summarizes the report.

The study also draws attention to the so-called” Nini “, neither in school nor work and Chile reached a rate of 22%, versus 16% on average in the OECD.

The authorities of that country, according to the OECD, should focus on promoting the inclusion of women in the labor market, generate quality jobs, enhance the quality of education and increase continuing training during working life.

This is recommended to increase public spending on social assistance for the disadvantaged, encouraging women to have paid jobs while promoting alternative ways to care for children.

It also advocates setting minimum wage regulations to encourage youth employment, improve training programs for workers and increase vigilance on tax evasion, among other measures.

The OECD study points to Chile, Mexico, Turkey, United States and Israel as the developed with more inequality, against most wage harmonization of Denmark, Czech Republic and Norway.

EFE

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Posted by RPP News on Thursday, May 21, 2015