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Chile has benefited from strong growth and well targeted social programs over recent years that have resulted in a reduction of poverty at all income levels. In analysing the progress in poverty reduction made in Chile, the different dimensions of poverty, including income and access to social services are reviewed. This World Bank report updates information on development in Chile through a focus on the years 1994 - 1998. It has developed and applied a methodology for the estimate of the imputed income transfers from government subsidies in health, education, and housing for the years 1990, 1994, 1996, and 1998. Access to social services, demonstrated by reduced infant mortality, increased life expectancy, and housing availability, has shown significant improvements in the evaluation period. Despite this achievement, income inequality remains relatively high and unemployment, among younger and poorer workers, is a severe problem.