The Development Center of the Organization for Economic Cooperation and Development (OECD) and the International Labor Organization (ILO) presented the report “How Immigrants Contribute to Costa Rica’s Economy”, which provides new insights and analysis of immigrant workers’ contribution in three areas of Costa Rica’s economy: labor markets, economic growth and public finance.

“Costa Rica is one of a few net immigration countries in the Latin America and the Caribbean region. In 2015, almost one out of ten people in the country was born abroad. National immigration policies are based on the protection of the human rights of immigrants and framed by the 2010 General Migration Law. One of the goals of this law is to promote policies that enhance immigration’s contribution to national development, but evidence on the degree to which immigrants affect Costa Rica’s economy has been insufficient”, explains the report.

The report states that the country has one of the largest shares of immigrants in the Latin American region.

“The share of immigrants in the Costa Rican population has increased significantly over the last 30 years. According to the latest census, 9.1% of the inhabitants were born abroad, more than twice the share in 1984. While most of them come from Nicaragua, various economic and political factors have also spurred important immigration from Colombia, Panama and the United States”. (https://doi.org/10.1787/9789264303850-en)

Immigrant workers are estimated to contribute between 11% and 12% of GDP, below their share in employment (14.3% in 2011), but above their share in the population (9.1%). This reflects their higher participation in the labour force and higher share in the working age population, but also their overrepresentation in sectors with relatively low value added, such as construction, agriculture and fishing, and hotels and restaurants.

“Immigrants in Costa Rica have average labor incomes similar to those of the native-born, but this varies by gender. Men’s wages are on average 7% lower if they are born abroad, while those of women do not differ once personal characteristics are taken into account. The wage gap in Cota Rica is smaller than that found in other partner countries. However, immigrants more often work in sectors where informality is high, and therefore their position is vulnerable”.

“In 2013, the latest year for which data is available, the net fiscal impact for both immigrants and native-born population was negative, but was greater for immigrants. Public expenditure was similar for immigrants and native-born, but the fiscal contributions of immigrants in taxes on good and services and on social security were lower”.