Labour flexibility: the case of Chile

Abstract

How the labour market has responded to changes in the macroeconomic environment has been a question central to the Chilean experience, especially during the 1970s and 1980s, due to the strong structural adjustments, economic cycles and the social costs involved in such processes. In the 1990s, concern for labour flexibility has shifted towards topics less related to the social costs and towards those more centered on competitiveness and economic growth.