Chile 2012.

Table of contents
 Basic statistics of Chile (2010 unless noted)
 Executive summary
 Assessment and recommendations
 Figure 1. Inequality and poverty across OECD countries
 Demand is keeping growth up but there are signs of a slowdown
 Figure 2. Inflation and inflation expectations
 Once the external environment improves the government should close the structural budget deficit
 Table 1. Summary of the Economic Outlook 90, OECD projections
 Figure 3. Sovereign wealth fund and copper prices
 In the medium term the government should increase the efficiency of the tax system and revenues Figure 4. Government expenditure by functionFigure 5. Tax revenue from different sources across countries
 Figure 6. Recurrent taxes on residential immovable property
 Figure 7. The environmental impact of growth differs across countries
 The current monetary policy is broadly appropriate
 Potential weaknesses in financial regulation need to be addressed
 Box 1. Recommendations to improve fiscal and monetary policies
 Stronger economic growth will require measures to reinforce productivity growth
 Figure 8. Potential growth in Chile The government should further build on its efforts to improve the quality and equity of educationFigure 9. Educational attainment and outcomes
 Figure 10. Per student expenditures in tertiary education
 Box 2. Recommendations to strengthen economic growth
 Higher cash transfers can help reduce poverty and strengthen economic growth
 Figure 11. Poverty rates in Chile
 Figure 12. Average household income by income decile
 Table 2. Fiscal revenues per capita before and after equalisation
 Box 3. Recommendations to improve anti-poverty policies and reduce inequality The poor, women and youth need more assistance to improve their employabilityFigure 13. Young people and women in the labour market
 Figure 14. Unemployment benefit replacement rates (net of taxes), 2009
 Figure 15. Coverage with early childhood education and care across OECD countries
 Box 4. Recommendations on labour market policies
 Better targeted housing subsidies and more residential mobility
 Figure 16. Share of population living in poor housing conditions
 Figure 17. Tenure structure across countries
 Figure 18. Residential mobility in OECD countries Box 5. Recommendations on housing policyBibliography
 Annex A1. Progress in structural reform
 Chapter 1. Reducing poverty in Chile: Cash transfers and better jobs
 Introduction
 Poverty and inequality in Chile
 Recent developments
 Figure 1.1. Poverty rates in Chile
 Figure 1.2. Poverty and inequality in Latin America comparison
 Figure 1.3. Inequality and poverty across OECD countries
 Table 1.1. Poverty across different groups, 2009
 Figure 1.4. Average household income by income decile
 Figure 1.5. Intergenerational earnings elasticity estimates