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

Author

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  • Robalino, Juan
  • Villalobos-Fiatt, Laura
Abstract
Despite 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.

Suggested Citation

  • Robalino, Juan & Villalobos-Fiatt, Laura, 2010. "Conservation Policies and Labor Markets: Unraveling the Effects of National Parks on Local Wages in Costa Rica," RFF Working Paper Series dp-10-02-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-10-02-efd
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    File URL: http://www.rff.org/RFF/Documents/EfD-DP-10-02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Cyrus Samii & Matthew Lisiecki & Parashar Kulkarni & Laura Paler & Larry Chavis & Birte Snilstveit & Martina Vojtkova & Emma Gallagher, 2014. "Effects of Payment for Environmental Services (PES) on Deforestation and Poverty in Low and Middle Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 10(1), pages 1-95.
    2. Miranda, Juan José & Corral, Leonardo & Blackman, Allen & Asner, Gregory & Lima, Eirivelthon, 2016. "Effects of Protected Areas on Forest Cover Change and Local Communities: Evidence from the Peruvian Amazon," World Development, Elsevier, vol. 78(C), pages 288-307.
    3. Julio Aguirre & Elmer Guerrero & Yohnny Campana, 2021. "How effective are protected natural areas when roads are present? An analysis of the Peruvian case," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 831-859, October.
    4. 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.
    5. 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.
    6. Vincent, Jeffrey R., 2012. "Ecosystem services and green growth," Policy Research Working Paper Series 6233, The World Bank.
    7. Miranda, Juan Jose & Corral, Leonardo & Blackman, Allen & Asner, Gregory & Lima, Eirivelthon, 2014. "Effects of Protected Areas on Forest Cover Change and Local Communities," RFF Working Paper Series dp-14-14, Resources for the Future.
    8. Cyrus Samii & Matthew Lisiecki & Parashar Kulkarni & Laura Paler & Larry Chavis, 2014. "Effects of decentralized forest management (DFM) on deforestation and poverty in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 10(1), pages 1-88.
    9. Miranda, Juan José & Corral, Leonardo & Blackman, Allen & Asner, Gregory & Lima, Eirivelthon, 2016. "Effects of Protected Areas on Forest Cover Change and Local Communities: Evidence from the Peruvian Amazon," World Development, Elsevier, vol. 78(C), pages 288-307.

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    More about this item

    Keywords

    wages; national parks; matching; labor markets; conservation policies; parks; poverty;
    All these keywords.

    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

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