Opportunities for Reducing Poverty and Inequality in Costa Rica - World Bank Poverty and Inequality Assessment - Executive summary and policy chapters

Jul 19, 2026

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This World Bank Poverty and Inequality Assessment examines key drivers of poverty and inequality in Costa Rica, tracing how growth dynamics shifted before the pandemic and how COVID-19 triggered recessionary impacts. It analyzes evolving poverty patterns, including rural-urban and regional differences, poverty profiles, and multidimensional poverty. The report evaluates household income sources and labor-market developments, reviews the role and targeting of social assistance, and assesses climate-change risks, adaptation, and mitigation implications for vulnerable populations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages152

Reading Time6 h 23 min

AccessFree to download

Executive summary

Chapter 1 Introduction

Chapter 2 Background

Economic growth before the pandemic

The economic recession induced by COVID-19

Structural factors pertinent for interpreting poverty trends

Chapter 3 Poverty and shared prosperity

National poverty and inequality trends

Rural/urban and regional disaggregation

Poverty Profiles

Multidimensional Poverty

Chapter 4 Trends in household income sources

The contribution of labor to household income declined in poorer households

Subgroups driving the decline in labor income

Chapter 5 Labor market

Sector-level changes did not favor workers with lower levels of education

Deteriorating labor market outcomes felt lower in the income distribution

A snapshot of the labor market in 2021

Chapter 6 Social assistance

Costa Rica’s social assistance system

Targeting of social assistance programs

Contribution of social assistance to poverty reduction

Chapter 7 Climate change

Climate change risks

Adaptation and mitigation efforts

Implications for poverty and the poor

Public Disc losure Authorized Disc losure Authorized Public Pub lic Disc losure Authorized Pub lic Disc losure Authorized Opportunities for reducing poverty and inequality in Costa Rica WORLD BANK POVERTY AND INEQUALITY ASSESSMENT Opportunities for reducing poverty and inequality in Costa Rica WORLD BANK POVERTY AND INEQUALITY ASSESSMENT WORLD BANK POVERTY AND INEQUALITY ASSESSMENT Table of contents Executive summary ................................................................................. 11 Chapter 1 Introduction ............................................................................... 21 Chapter 2 Background ............................................................................... 27 2.1 Economic growth before the pandemic ....................................................28 2.2 The economic recession induced by COVID-19................................................32 2.3 Structural factors pertinent for interpreting poverty trends .......................................36 2.3.1 OECD accession and fiscal consolidation ............................................. 36 2.3.2 Education trends............................................................. 38 Chapter 3 Poverty and shared prosperity ..............................................................45 3.1 National poverty and inequality trends ....................................................47 3.2 Rural/urban and regional disaggregation ...................................................51 3.3 Poverty Profiles .................................................................... 57 3.4 Multidimensional Poverty .............................................................66 Chapter 4 Trends in household income sources ........................................................ 73 4.1 The contribution of labor to household income declined in poorer households ..........................75 4.2 Subgroups driving the decline in labor income ...............................................78 Chapter 5 Labor market .............................................................................. 87 5.1 Sector-level changes did not favor workers with lower levels of education .............................89 5.2 Deteriorating labor market outcomes felt lower in the income distribution .............................94 5.3 A snapshot of the labor market in 2021 ................................................... 101 Chapter 6 Social assistance .........................................................................109 6.1 Costa Rica’s social assistance system .................................................... 111 6.2 Targeting of social assistance programs ................................................... 115 6.3 Contribution of social assistance to poverty reduction ......................................... 117 Chapter 7 Climate change ........................................................................... 125 7.1 Climate change risks ............................................................... 127 7.2 Adaptation and mitigation efforts ....................................................... 133 3 OPPORTUNITIES FOR REDUCING POVERTY AND INEQUALITY IN COSTA RICA 7.3 Implications for poverty and the poor .................................................... 135 7.3.1 The implications of a changing climate ..............................................135 7.3.2 The implications of Costa Rica’s adaptation and mitigation measures...........................138 Annex 1 Background on gender ..................................................................... 142 Annex 2 Comparison of ENAHO to other data sources ................................................. 144 List of figures Figure ES1. Real per capita income growth (panel a) and poverty trends (panel b) 2010-21............................. 13 Figure ES2. Poverty rates for different demographics

FAQs

How does the report describe changes in Costa Rica’s poverty and inequality over time?

It links poverty trends to periods of economic growth and then a COVID-19–induced recession, highlighting worsening inequality indicators and shifts in poverty rates over the decade-long span.

What does the report say about household income sources and labor income?

It shows that the labor contribution to household income declined more in poorer households and identifies subgroups driving the overall decline in labor income.

How does social assistance contribute to poverty reduction, and how are programs targeted?

It reviews Costa Rica’s social assistance system, explains how targeting works, and assesses how social assistance programs help reduce poverty outcomes.

Jul 19, 2026

Upload by Riley