Friday, November 25, 2011

Inequality In Chile Is Due To Unequal Access To Jobs

The former Finance Minister of Chile raises the issue of income inequality in Chile and other developing countries around the world. He points out that Chile has made remarkable progress over the last 25 years. Democracy has been strengthened along with improved social welfare programs. Per capita GDP has tripled in that period but it has not been equally distributed. He calls that a problem of market failure in the labor market. There are not enough jobs available for young workers with limited skills and experience. They don't participate in the labor market and they don't vote. Moreover, labor relations between unions and management are not good in Chile. The problem of inequality is a political problem more than an economic problem.

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