It suggests that bringing all Chileans on board requires focusing on: expanding, and improving the efficiency, of the tax-and-transfer systems for effective redistribution, tackling inequalities in the labour market to promote employment and good-quality jobs, and expanding women participation in the labour force to close gender gaps. Chile has experienced a remarkable decline in absolute poverty since the return to democracy in the 1990s. The share of people living below the national poverty line has fallen dramatically (see Figure 1). Strong economic growth, which increased labour income for all income deciles, social policies and a significant increase in educational attainment, explain in a large part the decrease in poverty rates. The development of a sophisticated system of transfers and subsidies - around 40 % of the population receives cash transfers and subsidies provided by the state - has been relatively successful at lifting people out of poverty (Sunkel and Infante, 2009, Rau, 2011).