Collective bargaining is an important instrument to deal with old and new challenges in the labour market, such as facilitating technological transitions or preventing inequalities in the labour market. This policy paper provides a benchmarking exercise to compare the Chilean collective bargaining system with those of other OECD countries. It also discusses the economic effects of collective bargaining systems and the importance of their design, drawing on a mix of macro and micro evidence. Finally, it presents noteworthy practices in other OECD countries that can offer insights to Chile as it contemplates the introduction of sectoral bargaining models.
