Ricardo Caballero: “Chile has serious problems in its labor market”

SANTIAGO.- Economist Ricardo Caballero expressed harsh criticism of the Chilean labor market today, proposing that problems in the sector are jeopardizing the growth of the national economy.

Caballero, who is also the head of the Department of Economics at MIT, explained that there is a significant degree of uncertainty surrounding the labor market, which is very costly for the country.

With regards to the degree of responsibility the Minister of Labor might hold in the issue, Caballero stated that he was not familiar with the actions taken by Osvaldo Andrade, but asserted, “I imagine that a large part of this can be attributed to the current Ministry of Labor”.
 
Concerning measures that could be taken to combat the situation, the economist proposed a more simplified labor policy through an increased amount of employment flexibility.