Social inclusion in Panama

Strong and sustained economic growth over the past 15 years has translated into significant improvements in well-being outcomes. Although economic growth lifted a significant share of the population out of poverty and created jobs, Panama still faces structural challenges preventing the emergence of a consolidated middle class and equity across territories. This chapter discusses the main bottlenecks affecting inclusive growth and well-being. It begins with an overview of income patterns in the past decade and then examines the main drivers of inequality. It looks in particular at the role of income redistribution, differences across regions, urban planning, education and skills, and job quality. Assessing these drivers is key to improve the lives of all Panamanians, especially the most vulnerable.