Conservation Policies and Labor Markets: Unraveling the Effects of National Parks on Local Wages in Costa Rica

Using household surveys with highly disaggregated geographic reference, the authors explored how national parks affect local wages in Costa Rica and how effects on local welfare can be positive or negative in different parks or even within different areas of a park.

They found that wages close to parks are higher only when jobs are near tourist entrances. The location of national park entrances and the possibility that agricultural workers can switch to higher-paid service activities near entrances may be important tools for helping local workers take advantage of the economic benefits of protected areas.