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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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