Available evidence from individual longitudinal data for the United States and Europe suggests that the NEET status can be very persistent, leading to a vicious circle whereby inactivity feeds into discouragement and that, in turn, to a further detachment from the labour market (Quintini and Manfredi, 2009). For instance, low skilled workers are much more likely to oscillate between the formal and the informal sector and between inactivity and unemployment than workers with higher skills (OECD, 2012a). Low skilled workers benefit also from lower social protection (e.g. unemployment benefits, sickness coverage, severance pay) than high skilled workers, as they are more likely to work informally (OECD, 2009, Scarpetta and Sonnet, 2012). Informal employment, although has receded during the past three years, remains significant in Chile.