1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Structural policies to boost productivity and inclusion in Costa Rica

Owing to past structural reforms, Costa Rica has enjoyed robust GDP growth and productivity levels are gradually converging towards the OECD average. However, large GDP per capita and productivity gaps persist. In addition, not everyone has benefited from this growth. Inequality has increased and labour market conditions are a concern. Costa Rica has a lower share of employed workers in the population than almost all OECD countries, unemployment remains well above its pre-global-financial-crisis level, labour market participation has decreased and the share of informal jobs is high. Recognising these challenges, Costa Rica has accelerated its structural reform momentum recently, with policy reforms underway or planned in several areas that present win-win opportunities to boost both productivity and inclusion. These include efforts to tackle labour market informality, simplify the minimum wage structure, increase competition and reduce regulatory burdens. In addition to further reforms in these priority areas, structural policy improvements are also needed to increase outcomes and reduce inequalities in education and address significant transport infrastructure gaps.

English Spanish

Keywords: productivity, Costa Rica, inclusive growth
JEL: J58: Labor and Demographic Economics / Labor-Management Relations, Trade Unions, and Collective Bargaining / Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy; O33: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Choices and Consequences; Diffusion Processes; J46: Labor and Demographic Economics / Particular Labor Markets / Informal Labor Markets; J32: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions; I31: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / General Welfare; Well-Being; I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy; J16: Labor and Demographic Economics / Demographic Economics / Economics of Gender; Non-labor Discrimination; O38: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Government Policy; J14: Labor and Demographic Economics / Demographic Economics / Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination; J48: Labor and Demographic Economics / Particular Labor Markets / Particular Labor Markets: Public Policy; R48: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: Government Pricing and Policy; L40: Industrial Organization / Antitrust Issues and Policies / Antitrust Issues and Policies: General; J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure; O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; J24: Labor and Demographic Economics / Demand and Supply of Labor / Human Capital; Skills; Occupational Choice; Labor Productivity; L53: Industrial Organization / Regulation and Industrial Policy / Enterprise Policy; L51: Industrial Organization / Regulation and Industrial Policy / Economics of Regulation
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