Changes in the Distribution of Household Income in Costa Rica During the First Decade of the 21st Century
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Keywords

inequality economic
HOUSEHOLD INCOME DISTRIBUTION
GINI COEFFICIENT
COSTA RICA

How to Cite

Trejos S., J. D., & Oviedo C., L. A. (2022). Changes in the Distribution of Household Income in Costa Rica During the First Decade of the 21st Century. Revista De Ciencias Económicas, 30(2), 9-29. https://doi.org/10.15517/rce.v30i2.8005

Abstract

During the first decade of XXI century, Costa Rica does not follow the trend of most of the countries in the region in terms of the reduction of per capita household income inequality. In the first half of this decade, there was a reduction of inequality in a context of economic growth, but with stagnation of real income; which is concentrated in the upper income strata. In the second half of the decade, the rise of inequality is caused by a significant increase in real income from all sources, but mainly for those with a concentrated effect that cannot be offset by the expansion of the sources that reduce inequality (income of unskilled workers and state transfers). The results suggest the need for a more active minimum wage policy, strengthen productive support programs for the informal sector, expanding the supply of skilled workers through an education policy and increase cash transfers to the poorest, which requires a tax reform.

PDF (Spanish)

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