Did you know?
| indicator | value | unit |
|---|---|---|
| Population | 18.7 | mil. |
| Visitors per year | 3.6 | mil. |
| Renewable energy | 24.1 | % |
How’s Life?
Chile has made tremendous progress over the last decade in terms of improving the quality of life of its citizens. Since the 1990s, the country has seen a track record of robust growth and poverty reduction. Notwithstanding, relative to other countries in the Better Life Index, Chile underperforms the average in income, jobs, education, environmental quality, social connections, civic engagement, safety and life satisfaction. These assessments are based on available selected data.
Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Chile, the average household net-adjusted disposable income per capita is USD much less than the OECD average of USD 30 490 a year.
In terms of employment, about 56% of people aged 15 to 64 in Chile have a paid job, below the OECD employment average of 66%. Some 65% of men are in paid work, compared with 47% of women. In Chile, 8% of employees work very long hours in paid work, below the OECD average of 10%, with 10% of men working very long hours in paid work compared with 5% of women.
Good education and skills are important requisites for finding a job. In Chile, 67% of adults aged 25-64 have completed upper secondary education, lower than the OECD average of 79%. Completion varies slightly between men and women: 67% of men have successfully completed high school compared with 68% of women. In terms of the quality of the education system, the average student scored 438 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is lower than the OECD average of 488. On average in Chile, girls outperformed boys by 3 points, below the average OECD gap of 5 points.
In terms of health, life expectancy at birth in Chile is around 81 years, the same as the OECD average. Life expectancy for women is 83 years, compared with 78 for men. The level of atmospheric PM2.5 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 23.4 micrograms per cubic meter, above the OECD average of 14 micrograms per cubic meter. In Chile, 62% of people say they are satisfied with the quality of their water, much lower than the OECD average of 84%.
Concerning the public sphere, there is a moderate sense of community and moderate levels of civic participation in Chile, where 88% of people believe that they know someone they could rely on in time of need, less than the OECD average of 91%. Voter turnout, a measure of citizens' participation in the political process, was 47% during recent elections, much lower than the OECD average of 69%. Social and economic status can affect voting rates; voter turnout for the top 20% of the population is an estimated 56% and for the bottom 20% it is an estimated 45%.
When asked to rate their general satisfaction with life on a scale from 0 to 10, Chileans gave it a 6.2 grade on average, lower than the OECD average of 6.7.
For more information on estimates and years of reference, see FAQ section and BLI database.
Topics
OECD in Action
OECD Economic Surveys: Chile
OECD’s periodic surveys of the Chilean economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.
Read this reportFind Out More
Chile in Detail
Housing – Chile expand
Key Findings
Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.
Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In Chile, households on average spend 18% of their gross adjusted disposable income on keeping a roof over their heads, below the OECD average of 20%.
In addition to housing costs it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities. The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and children's development. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Chile, the average home contains 1.9 rooms per person, above the OECD average of 1.7 rooms per person. In terms of basic facilities, 90.6% of dwellings in Chile contain private access to an indoor flushing toilet, less than the OECD average of 97%.
Better Policies for Better Lives
Diversifying and improving housing
Chile has taken concrete steps to improve the living conditions of more vulnerable populations. The Social Housing Recovery Programme allows owners of housing complexes that are beyond improvement or repair to transfer them to the Housing and Urbanisation Service in exchange for a housing subsidy. Residents are then able to purchase a home that is in good condition. The government recovers the land to develop urban renewal projects.
Between 280 000 and 344 000 families are eligible for the Social Housing Improvement Programme. This programme improves the quality of complexes that are in poor but recoverable condition. Funding is allocated for each household that is part of an improvement project, and applicants also make a small contribution.
Chao Suegra (Goodbye mother-in-law) is a rental housing subsidy programme to help young adults purchase their own home. The programme was launched in 2014 with a quota for 5 000 applicants, limited to heads of household aged 21-30. Applicants are offered assistance of up to CLP 200 000 (about USD 360) for a 5-year period. The first group of applicants was 82% women, and had an average household size of 2.6 members, 26 years old, and an average rental payment of 304 000 (about USD 550).
Supporting private rental housing in Chile
A small share of households live in rented housing in Chile (16%) compared to other OECD countries (20%) and in Chile the private rental sector caters more to high income households than to low-income ones, contrary to what happens in most OECD countries. This is probably in part the result of Chile's housing policy in the past decades, which has supported access to homeownership among low and middle-income households but provided no support to the rental sector.
A stronger access to rental housing for lower and middle-income households can help improve residential mobility and reduce residential segregation. In 2013, Chile introduced a pilot rental subsidy programme, which provides means-tested rental vouchers to young families. The voucher provides a flat payment, directly to the landlord, for a period of time limited to five years. The subsidy is highly portable in case of relocation and allows for some payment flexibility to avoid evictions in the face of a temporary income loss. This programme is a good start to a more tenure-neutral housing policy in Chile but actions should be considered to support the supply of good-quality private but also social rental dwellings.
More Resources
How's Life?: Measuring Well-beingIndicators
Community – Chile expand
Key Findings
Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being. A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Chile, 88% of people believe that they know someone they could rely on in a time of need, less than the OECD average of 91%.
A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations.
More Resources
How's Life?: Measuring Well-being OECD Insights: Human CapitalIndicators
Education – Chile expand
Key Findings
A well-educated and well-trained population is essential for a country's social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Having a good education greatly improves the likelihood of finding a job and earning enough money. Chileans can expect to go through 17.4 years of education between the ages of 5 and 39, similar to the OECD average of 18 years.
Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market. In Chile, 67% of adults aged 25-64 have completed upper secondary education, lower than the OECD average of 79%.
But graduation rates, while important, speak little to the quality of education received. The OECD's Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2018, PISA focused on examining students' reading ability, skills in maths and level in sciences, as research shows that these skills are more reliable predictors of economic and social well-being than the number of years spent in school.
The average student in Chile scored 438, below the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.
Better Policies for Better Lives
Investing in youth
Despite improvements in enrolment rates – nearly all children aged 5-17 are in school – performance and access to quality education is uneven. Chile's government has taken important measures to invest more in early childhood education and care, make schools more inclusive and reshape teacher careers. It is also promoting policies to improve access to quality tertiary education for students from medium and low socio-economic backgrounds. Recent education reforms aim to create better opportunities for vulnerable populations. Key objectives include: building more inclusive schools; reshaping teachers' careers; strengthening early childhood education and care; increasing the quality of primary, secondary and tertiary education; and reducing skill gaps across socio-economic groups.
A law making kindergarten universal was enacted in 2013, and the government has made expanding early childhood education a high priority. The recently passed Inclusion and Equity Law stops the selection of student by public and private subsidised schools, a practice that disproportionately placed students from lower socio-economic backgrounds in poor performing schools. The law also disallows for-profit schools, eliminates co-payments, and increases funding for vulnerable students using a voucher system. The cessation of these practices is expected to narrow inequities by improving access to quality education.
More Resources
How's Life?: Measuring Well-beingIndicators
Environment – Chile expand
Key Findings
The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions, the health impacts of urban air pollution continue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.
PM2.5 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Chile, PM2.5 levels are 23.4 micrograms per cubic meter, much higher than the OECD average of 14 micrograms per cubic meter, and a much higher level than the annual guideline limit of 10 micrograms per cubic meter set by the World Health Organization.
Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. In Chile, 62% of people say they are satisfied with water quality, much lower than the OECD average of 84%.
More Resources
How's Life?: Measuring Well-being OECD Environmental Outlook to 2050Indicators
Governance – Chile expand
Key Findings
Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available, voter turnout in Chile was 47% of those registered. This figure is one of the lowest rates in the OECD, where average turnout is 69%.
Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In Chile, the level of stakeholder engagement in developing regulations is 1.3 (on a scale between 0 and 4); lower than the OECD average of 2.1.
For more information on estimates and years of reference, see FAQ section and BLI database.
Better Policies for Better Lives
One stop shop for state procedures
"ChileAtiende" offers a national multi-channel one-stop shop for citizens to carry out their business with government. It has a national network of more than 190 offices, a national call centre and a digital platform (web and social networks) through which citizens can access multiple services and benefits without having to contact multiple government offices. Previously, citizens needing to complete a procedure with the state had to identify which institution delivered the service, where its offices were located and contact them to find out the requirements to access the service. This was costly in terms of time and money.
ChileAtiende has resulted in savings in infrastructure investments of USD 30 million plus savings of USD 0.48 million through shared services for participating organisations. And that is just the savings to government. Citizens saved an estimated USD 39 million from January 2012 to August 2013 through reduced travel and opportunity costs.
Formalising public engagement
Law 20.500 makes it compulsory for government to undertake public participation and consultation. Under one aspect of the new law, central administration bodies must, with certain exceptions, create Civil Society Councils. These councils are permanent advisory boards and come from non-profit organisations related to subject matter of the administrative body. Civil Society Councils must be plural, representative and diverse in composition.
More Resources
How's Life?: Measuring Well-being Regulatory Policy Outlook: ChileIndicators
Health – Chile expand
Key Findings
Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. Life expectancy at birth in Chile stands at almost 81 years, in line with the OECD average. Higher life expectancy is generally associated with higher health care spending per person, although many other factors such as living standards, lifestyles, education and environmental factors have an impact on life expectancy.
When asked, "How is your health in general?" almost 60% of people in Chile reported to be in good health, less than the OECD average of 68%. Despite the subjective nature of this question, answers have been found to be a good predictor of people's future health care use. Gender, age and social status may affect answers to this question.
Better Policies for Better Lives
Faster treatment for patients
The Bono Auge programme (launched in 2010) reduces long waiting lists in public hospitals and ensures fast treatment for publicly insured patients in case of high risk diseases. The programme establishes a system of universal access and explicit guarantees for health care services by law. It means that people can obtain health care in the private sector via a voucher (bono) if public care is not available. The programme sets a maximum time limit to get medical attention to patients with one of 80 high-mortality pathological conditions. Patients who do not get prompt treatment in a public facility will be assigned to a different, public or private, provider through a Bono Auge voucher within two days.
The programme has led to a reduction of the patient waiting list with 113 566 unfulfilled guarantees at the end of 2010 being reduced to 50 780 cases by June 2011, with all cases solved and the list completely eliminated by October 2011. Among patients, 65% said they were satisfied with the benefits delivered by the programme and 81% were satisfied with the medical services provided.
More Resources
How's Life?: Measuring Well-beingIndicators
Income – Chile expand
Key Findings
While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, health care and housing.
Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In Chile, the average household net adjusted disposable income per capita is lower than the OECD average of USD 30 490.
Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Chile, the average household net wealth is estimated at USD 135 787, much lower than the OECD average of USD 323 960.
For more information on estimates and years of reference, see FAQ section and BLI database.
Better Policies for Better Lives
Tax reforms to reduce inequality
Although Chile has experienced a remarkable decline in absolute poverty since the 1990s, it remains one of the most unequal OECD countries. This is mostly due to the high concentration of income at the top 10% earning 26.5 times the average income.
Chile has introduced a new tax reform raise more revenue and expand social programmes. The government will increase its revenues by 75% to meet growing public spending needs in education and health. Since the increase in revenue will come from higher taxes on the top 1% it will help reduce inequalities, eliminate tax expenditures and fight tax evasion and avoidance. Estimates show that correcting for tax evasion will make a significant difference on the share of income distribution. The size of the effect of this reform on reducing inequality is unclear. It will remain important to monitor the effects and adjust the tax if needed.
Fighting old-age poverty and inequality
Chile has a well-developed system of individual pension accounts, yet the average pension is only 15% of average earnings. They are mostly financed by mandatory contributions equivalent to 10% of earnings. This is half the contributions average across OECD countries. Half of men have contribution densities lower than 47.5% and half of women have densities less than 12.8%. These low contributions reflect periods of self-employment, informal employment, unemployment or inactivity, particularly common among women and low-income workers.
To fight global old-age poverty, a minimum guaranteed pension was introduced in 2008 for the poorest 60% of long-term residents over 65 years old. This system provides a flat monthly benefit equivalent to USD 161. Elderly poverty has since reduced from around 23% in 2008 to 20% in 2011. In addition, the Chilean government decided to subsidise gaps in pension contributions of women and low-income workers. Contributions to individual pension accounts are also becoming gradually mandatory for self-employed workers.
More Resources
How's Life?: Measuring Well-beingIndicators
Jobs – Chile expand
Key Findings
Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one's own aspirations, building self-esteem and developing skills and competencies. In Chile, around 56% of the working-age population aged 15 to 64 has a paid job. This figure is lower than the OECD employment average of 66% and the one of the lowest figures in the OECD.
Unemployed persons are defined as those who are not currently working but are willing to do so and are actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Chile, the percentage of the labour force that has been unemployed for a year or longer is higher than the OECD average of 1.3%.
The wages and other monetary benefits that come with employment are an important aspect of job quality. Chileans earn USD 26 729 per year on average, much less than the OECD average of USD 49 165.
Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In Chile, workers face an expected 7% loss of earnings if they become unemployed, higher than the OECD average of 5.1%.
For more information on estimates and years of reference, see FAQ section and BLI database.
Better Policies for Better Lives
Training vulnerable workers
The Chilean government launched MásCapaz to improve the labour prospects of its most vulnerable populations, particularly youth and women.
MásCapaz is an ambitious employment training programme that targets low-skilled workers and workers with weak labour market attachment. Training schemes are intensive and last between 200 and 300 hours. The programme will also increase spending in labour market programmes by 0.4% of GDP to increase women's labour participation and reduce the gender gap.
In its first year of implementation the programme attracted 56 thousand to its training course. About 50% of participants were younger than 30 years and 75.8% were among the 20% of the poorest. MásCapaz is expected to train 300 000 women and 150 000 youth by 2018.
More jobs for low-income women
In Chile, the participation of low-income women in the labour market is held down by economic barriers because work often does not pay enough to compensate the cost of childcare. Even though female participation has increased from below 40% in the early 2000s it remains low at 55.7% in 2014.
To encourage more of these women to take up paid work, the Chilean government introduced an in-work benefit (Bono al Trabajo de la Mujer) in 2012, as part of the new cash transfer programme, Ingreso Etico Familiar. It builds on the successful experience of the in-work benefit for youth (Subsidio al Empleo Jóven), and targets women aged 25-59. At least 40% of the most vulnerable working women may be able to receive the subsidy. The benefit can go up to about CLP 34 000 (USD 67) per month on top of the Ingreso Etico Familiar transfer. It also includes a subsidy for the employer to encourage labour demand. In 2012, about 180 000 women received the subsidy.
More Resources
How's Life?: Measuring Well-being OECD Job Quality DatabaseIndicators
Life Satisfaction – Chile expand
Key Findings
Happiness or subjective well-being can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to objective data to compare the quality of life across countries.
Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10, Chileans on average gave it a 6.2 grade, below the OECD average of 6.7.
More Resources
How's Life?: Measuring Well-beingIndicators
Safety – Chile expand
Key Findings
Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example? In Chile, 41% of people say that they feel safe walking alone at night, much less than the OECD average of 74%.
The homicide rate (the number of murders per 100 000 inhabitants) is a more reliable measure of a country's safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Chile's homicide rate is 2.4, lower than the OECD average of 2.6.
More Resources
How's Life?: Measuring Well-beingIndicators
Work-Life Balance – Chile expand
Key Findings
Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.
An important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardise safety and increase stress. In Chile, however, nearly 8% of employees work very long hours in paid work, less than the OECD average of 10%.
The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits. In Chile, full-time workers devote less of their day on average, to personal care (eating, sleeping, etc.) and leisure (socialising with friends and family, hobbies, games, computer and television use, etc.) than the OECD average of 15 hours.