Study on the Coherence of Chilean Local Labour Markets

This study assesses the comparative adequacy the suitability of two types of territorial units—administrative provinces and Local Labor Markets (LLMs)—for socioeconomic analysis and public policy formulation in Chile. Using two labor market indicators (employment and unemployment) and two educational indicators, statistical tests and connectivity matrices are applied to examine the internal and external coherence of these units and determine their spatial autocorrelation. The results show considerable spatial autocorrelation in both types of units, with patterns slightly more pronounced in the LLMs. Furthermore, there is evidence of independence between provinces and LLMs, supporting external coherence and better targeting of policies to specific local characteristics. In conclusion, socioeconomic characteristics show uniform clustering trends throughout the Chilean territory, regardless of the regional scale employed.