Costa Rica has recorded many social and economic achievements and currently enjoys
one of the highest levels of well-being in the OECD. But progress has come to a standstill
in most recent years and challenges have emerged along several social and labour market
dimensions. Existing policies are outdated and no longer effective in today’s dynamic,
export oriented economy which requires greater flexibility and more high skilled workers.
How can Costa Rica better respond to the challenges of technological change and globalisation
whilst minimising the transition costs it endures as it moves to a higher and a more
sustainable path to inclusive growth? This report provides comprehensive analysis
of Costa Rica’s policies and practices compared with best practice in the field of
labour, social and migration from across the OECD and other countries in the Latin
American region. It contains several recommendations to tackle key challenges facing
Costa Rica, including low labour utilisation, increasing inequality, high poverty
and high-risk of economic exclusion especially of the low skilled and migrants. This
report will be of interest in Costa Rica as well as other countries looking to promote
a more dynamic and an inclusive economy.