Abstract
A better understanding of how immigrants shape the economy of Costa Rica can help policy makers formulate policies to boost positive effects and mitigate negative effects of immigration. This report finds that immigration has a limited, but varying, economic impact in Costa Rica. Immigration tends to reduce the employment rate of the native-born population, but does not affect labour income. The estimated share of value added generated by immigrants is above their share of the population. In 2013, immigrants’ contribution to the government budget was below that of the native-born population, while expenditures for both groups were similar. Policies aimed at immigrant integration, by increasing de facto access to public services and to the labour market, could enhance immigrants’ economic contribution.