The Economy of Costa Rica
Inequality and Two-Speed Economy
Free-zone firms are highly productive, but many workers in agriculture and small business are not, creating a dual economy and rising inequality.
Uneven benefits.
Two sectors
High-tech firms and small local businesses have very different productivity.
Inequality
Income inequality is higher than in some peers.
Informality
A large share of workers are informal.
Policy
Better training and links between multinationals and local suppliers.
A wage gap
A technician in a multinational earns several times more than a farm worker.
Assuming a rich country is equal
Gaps exist.
Key takeaways
- Productivity differs widely.
- Inequality is notable.
- Informality is significant.
- Linkages can help.
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