Conservation Policies and Labor Markets: Unraveling the Effects of National Parks on Local Wages in Costa Rica
AbstractDespite the global environmental benefits of increasing the amount of protected areas, how these conservation policies affect the well-being of nearby individuals is still under debate. Using household surveys with highly disaggregated geographic references, we explored how national parks affect local wages in Costa Rica and how these effects vary within different areas of a park and among different social groups. We found that a park’s effects on wages vary according to economic activity and proximity to the entrance of the park. Wages close to parks are higher only for people living near tourist entrances. Workers close to entrances are not only employed in higher-paid activities (nonagricultural activities) but also receive higher wages for these activities. Agricultural workers, however, are never better off close to parks (neither close to or far from the entrances). Also, workers close to parks but far away from tourist entrances earn similar or lower wages than comparable workers far away from parks. Our results are robust to different econometric approaches (OLS and matching techniques). The location of national park entrances and the possibility that agricultural workers can switch to higher-paid service activities near tourist entrances may be important tools for helping local workers take advantage of the economic benefits of protected areas.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-10-02-efd.
Date of creation: 06 Feb 2010
Date of revision:
wages; national parks; matching; labor markets; conservation policies; parks; poverty;
Find related papers by JEL classification:
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-03-20 (All new papers)
- NEP-ENV-2010-03-20 (Environmental Economics)
- NEP-LAB-2010-03-20 (Labour Economics)
- NEP-TUR-2010-03-20 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John A. List & Michael Margolis & Daniel E. Osgood, 2006. "Is the Endangered Species Act Endangering Species?," NBER Working Papers 12777, National Bureau of Economic Research, Inc.
- Pfaff Alexander & Robalino Juan & Sanchez-Azofeifa G. Arturo & Andam Kwaw S & Ferraro Paul J, 2009. "Park Location Affects Forest Protection: Land Characteristics Cause Differences in Park Impacts across Costa Rica," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(2), pages 1-26, July.
- Sims, Katharine R.E., 2010. "Conservation and development: Evidence from Thai protected areas," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 94-114, September.
- Katrina Mullan & Andreas Kontoleon & Tim Swanson & Shiqiu Zhang, 2008. "An evaluation of the impact of the Natural Forest Protection Programme on Rural Household Livelihoods," Environmental Economy and Policy Research Working Papers 34.2008, University of Cambridge, Department of Land Economics, revised 2008.
- Robalino, Juan A., 2007. "Land conservation policies and income distribution: who bears the burden of our environmental efforts?," Environment and Development Economics, Cambridge University Press, vol. 12(04), pages 521-533, August.
- Johannes F. Schmieder & Till von Wachter, 2010. "Does Wage Persistence Matter for Employment Fluctuations? Evidence from Displaced Workers," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 1-21, July.
- David J. Lewis & Gary L. Hunt & DAndrew J. Plantinga, 2002.
"Public Conservation Land and Employment Growth in the Northern Forest Region,"
University of Wisconsin Press, vol. 78(2), pages 245-259.
- Lewis, David A. & Hunt, Gary L. & Plantinga, Andrew J., 2001. "Public Conservation Land And Employment Growth In The Northern Forest Region," 2001 Annual meeting, August 5-8, Chicago, IL 20748, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Vincent, Jeffrey R., 2012. "Ecosystem services and green growth," Policy Research Working Paper Series 6233, The World Bank.
- Gustavo Canavire-Bacarreza & Merlin M. Hanauer, 2012.
"Estimating the Impacts of Bolivia's Protected Areas on Poverty,"
201231, Latin American and Caribbean Environmental Economics Program, revised 2012.
- Canavire-Bacarreza, Gustavo & Hanauer, Merlin M., 2013. "Estimating the Impacts of Bolivia’s Protected Areas on Poverty," World Development, Elsevier, vol. 41(C), pages 265-285.
- Gustavo Canavire-Bacarreza & Merlin M. Hanauer, 2012. "Estimating the Impacts of Bolivia's Protected Areas on Poverty," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1208, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Canavire Bacarreza, Gustavo Javier & Hanauer, Merlin M., 2012. "Estimating the Impacts of Bolivia's Protected Areas on Poverty," IZA Discussion Papers 6341, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If references are entirely missing, you can add them using this form.