Increasing pension contributions and extending the retirement age, especially for women, could boost GDP per capita over the medium term and help raise the currently low pension replacement rates.
According to The Economist, Chile has a Gini coefficient of about 0. Paulsen was touching upon one of the most heated topics in Chile today by discussing a tax reform that could increase education funding and tackle the problem of a lack of access to high-quality education at an affordable price.
Furthermore, Zahler argues that levels of inequality have stayed the same since the beginning of the s. It says the incoming administration needs to build on these efforts with further reforms to boost productivity growth, diversify the economy, improve adult skills and get more people into formal long-term jobs that add real value.
In addition to a tax reform, the stride towards a long-term solution to inequality has led to massive student protests over the past six months.
As the economic growth rises and falls it will proportionally affect the poverty rate. For example, students in the second year of secondary school living in the richest comunas neighborhoods score significantly higher than do students from other parts of Santiago, as a study by the Center for Research in Social Structure of the University of Chile CIES points out.
That said, a tax reform in Chile has to go beyond just raising taxes. That would also help open up an export market dominated by a handful of conglomerates. Some argue that, thanks to an increased number of private higher education institutions, more Chileans can attend university and subsequently increase their income level.
Although Zahler reaches this conclusion using a method he himself criticizes —looking at averages—his analysis powerfully illustrates that there are two very different Chiles, and that looking at overall GDP does not provide an accurate representation of the whole country.
National and international advocates for education reform agree that Chile must significantly increase its expenditures on education to provide quality institutions and reduce inequality. More Opportunities and Better Jobs.
Also AvailableEgalement disponible s. Chile would also benefit from raising public support for research and development and stepping up infrastructure investment, which would spur innovation and competitiveness.
Yet low productivity remains a drag on living standards. Private universities have implemented a selective admission process to further segregate students along the economic line and identify top students. The decline has been directly attributed to the extreme rise in economic growth and industrial production.Inequality on the rise?
A last section discusses the implications of inequalities for sustainable development, cent in countries such as Mexico and Chile. When Chile is analyzed using the Inequality-adjusted Human Development Index (IHDI), “Chile loses almost 20% of the value of its indicator, decreasing by 11 points in the overall ranking (of countries where there is an indicator set), and falls to third place in the region.
Income Inequality in Chile Chile is a country located in South America that has experienced a lot of economic growth over the recent past and through all of this growth there have been some income inequalities that result from a number of factors.
The Role Of Democracies In Reducing Economic Inequalities Politics Essay.
thereby endangering local investment and weakening the 'traditional economic sector', for instance, the case of Brazil, Chile and Iran in the s. While autocratic regimes see holding state's income as an effecitive strategy towards achieving economic growth and.
POVERTY, INEQUALITY, AND WELFARE IN A RAPID-GROWTH ECONOMY The Chilean Experience Dante Contreras Chile is maturing politically and becoming a more modern and globalized society.
The country’s current issues in order to continue its development and. Nov 24, · Chile, Mexico and the U.S. are the developed countries with the highest rates of inequality, the Organization for Economic Cooperation and Development said in a report.Download