Valuation of Active Chilean Employment Support Policies Seeking Economic Sustainability through Market Flows

Abstract

This paper proposes a market flow methodology to assess Chilean employment support policies between 1996 and 2019 based on the probability of finding or losing a job and market flow analysis. The proposed methodology is analyzed with data obtained from the National Institute of Statistics (INE), establishing flows and probabilities of entry and exit from employment and their contributions to the variability of unemployment to clarify the behavior of Chilean employment support and select the type of measures through which to provide improved recovery and job protection and the other possible improvements to be made. Employment is an essential issue of a country’s sustainability. The results show the efficiency of the proposed approach in evaluating employment support policies in different countries.