poverty inequality and welfare in chile evidence challenges and lessons n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Poverty, inequality and welfare in Chile: Evidence, challenges and lessons PowerPoint Presentation
Download Presentation
Poverty, inequality and welfare in Chile: Evidence, challenges and lessons

Loading in 2 Seconds...

play fullscreen
1 / 19

Poverty, inequality and welfare in Chile: Evidence, challenges and lessons - PowerPoint PPT Presentation


  • 123 Views
  • Uploaded on

Poverty, inequality and welfare in Chile: Evidence, challenges and lessons. Dante Contreras UNDP and Department of Economics, University of Chile. The evidence. The Chilean strategy to reduce poverty [74-96] Economic growth Targeting social policies to extreme poverty. Results:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Poverty, inequality and welfare in Chile: Evidence, challenges and lessons' - sema


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
poverty inequality and welfare in chile evidence challenges and lessons

Poverty, inequality and welfare in Chile: Evidence, challenges and lessons

Dante Contreras

UNDP and Department of Economics, University of Chile

the evidence
The evidence
  • The Chilean strategy to reduce poverty [74-96]
    • Economic growth
    • Targeting social policies to extreme poverty.
  • Results:
    • We observed a significant reduction in poverty.
    • However, this strategy is not useful now  social policies move to the second stage.
slide5
The evidence also suggests that economic growth has contributed significantly to poverty reduction.Datt-Ravallion decompositions
in sum
In sum …
  • Poverty has declined as a result of economic growth.
  • Inequality has remained high and stable. [Gini = 0.55]
  • However, this strategy [EG+TSP] is not enough to:
    • Reduce inequality.
    • Reduce vulnerability.
    • Increase social mobility and opportunities [access to quality education is a pending challenge in Chile]
challenge 1 vulnerability
Challenge 1: Vulnerability
  • Recent panel surveys have shown that income instability and the risk of falling into poverty are significant for Chileans hhs.
  • The current design of social policy are not enough to protect from vulnerability.
slide8

Panel CASEN: 1996, 2001, 2006

  • Panel data:
  • Between 1996 and 2001, static poverty fell from 22% to 18%, but more that 34% of the population was poor at least at one point in time.
  • 4,24% of population was poor in 1996, 2001 and 2006.
  • 29,3% was poor one or two times in 1996, 2001 and 2006.
chile s response to these problems
Chile’s response to these problems
  • New strategy: social protection system
    • Chile Solidario  extreme poverty.
    • Chile Crece Contigo  children.
chile solidario
Chile Solidario
  • Chile Solidario is a conditional cash transfer oriented to the poor. Similar strategies are currently implemented in Mexico (Opportunities) and Brazil (Bolsa Familia). Those programs have for objectives to integrally support the poor.
  • Chile Solidario is a program covering about 300,000 households. It targets the extremely poor through a national system that registers beneficiaries on the basis of intense monitoring of families conducted by social workers.
  • Significant effort in design
  • Less effort in evaluation: UNDP + WB [next week]
the infant protection system chile crece contigo
The Infant Protection System Chile Crece Contigo
  • Is a social protection program oriented to children and their families
    • From gestation [fifth month of pregnancy]
    • Until children entry to the school system.
    • August 2007
    • Target to 40% poorest segment of the population
  • Chile Crece Contigo provides children with access to universal services 
    • Health, nutrition.
    • Psycho-emotional support.
    • Integral development over the life cycle.
  • Significant effort in design
  • Less effort in evaluation: UNDP + WB [?]
challenge 2 inequality of opportunities and social mobility
Challenge 2: Inequality of opportunities and social mobility
  • In Chile the accumulation of skills is proportional to the resources of the households of origin.
  • One measure of social mobility is the income elasticity of children’s incomes compared to their parents’ incomes.
  • In this context, a low elasticity indicates that the socioeconomic background is less important in defining the set of economic opportunities.
social mobility intergenerational elasticity
Social Mobility  intergenerational elasticity
  • Chile Contreras and Fuenzalida (2007): 0.65
  • Low social mobility
chile s response to these problems education
Chile’s response to these problems Education
  • Since 1990, Chile has significantly increased its educational expenditure. Public education expenditure measured as a percent of GDP increased from 2.6% in 1990 to 4.0% in the year 2006.
  • Many reforms: teacher incentives, evaluations, supporting poor schools, etc.
  • Results
    • Enrollment almost 100%
    • The educational achievement is still well below from Developed Countries.
    • PISA (2003) tests, only 5% of Chilean 15 year old students reached the average level of OECD countries.
  • This outcome is also observed in other LAC: Argentina, Brazil, México and Peru show educational outcomes below to other countries with similar level of per capita expenditure.
  • Low quality of education.
  • Unequal access to quality of education. [enrollment is not a problem]
  • New reforms have been announced  under discussion.
lessons
Lessons …
  • The social strategy based on a sustained economic growth and targeted social policies are exhausted.
  • Transition in development  transition in policies
  • Chile is moving to a new stage in social protection program where vulnerability, inequality and equal opportunities are the most important components.
  • In order to sustain social policies economic growth, macroeconomics and political stability are very important.
  • The social protection strategy needs to be consolidated [Evaluation + Efficiency]
  • The access to opportunities [education] is of increasing important.
slide18

Earnings: Hourly wages: quintiles 58 – 90s

Inequality is explained by the top quintile