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CAMP RESOURCES XVII

Conservation Policies and Labor Markets: Unraveling the effects of national parks on local wages in Costa Rica. Laura Villalobos Juan Robalino. CAMP RESOURCES XVII. Research Questions.

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CAMP RESOURCES XVII

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  1. Conservation Policies and Labor Markets:Unraveling the effects of national parks on local wages in Costa Rica Laura Villalobos Juan Robalino CAMP RESOURCES XVII

  2. Research Questions 1. Is there a gap in the wages received by people living close to national parks with respect to wages in other rural areas? 2. If there is, where are these differences coming from? Volcán Tenorio National Park, Costa Rica

  3. Motivation • DEMAND FOR LAND • Demand for land : 12% global land area under protection (Coad et al. 2008), incentives to increase PAs in developing countries: REDD • ENVIRONMENT AND DEVELOPMENT • How will these policies affect the well being of individuals in localities where these policies are implemented? • Effects on labor markets • POLICY IMPLICATIONS • More informed decisions • To whom to address policies?

  4. Literature review • Parks Literature Parks literature studies environmental effects: deforestation • Previous Socioeconomic Studies Positive effects on: • Poverty: Costa Rica and Thailand (Andam et al 2009, Sims 2009) • Household consumption: Thailand (Sims 2009) • Bolivia Yanez (2006) • Our contribution • Look at the effect of being close to the entrance • Split the data so we can look at the effects for different groups • Labor Market: wages

  5. Methodology

  6. Data • Socioeconomic variables • Household surveys (INEC 2000-2007) • Dependent Variable: Real wages per hour (log) • Gender, age, education level, migrant status, nationality, marital status, and full-year employment, place of residency two years before, economic activity and occupation • These households are geographically referenced with census tracks • Geographic variables • Map from ITCR 2005: National Parks’ map • precipitation, slope, road density, distances to: schools, clinics, coasts, rivers and San José • We located visitors’ access to parks (entrances)

  7. Our treatment and control groups Treatment 3: Closetopark, farfromtheentrance Control Group: rural areas, farfromparks 24 NationalParks 10% CR of territory Treatment 2: Closetopark, neartheentrance Treatment 1: Closetopark

  8. RESULTS

  9. Histogram of Estimated Propensity Matching Score Close to National Park Entrances versus Far from Parks

  10. RESULTS: Gap bygroups (closetoentrance)

  11. Robustness Tests: Different distances

  12. Conclusions • Wages close to entrances higher compared with the no-park situation • No gap far from the entrance • Shifting activities • Women are greatly benefitted • Costa Ricans, and non migrants • Foreigners, agriculture sector and migrants • Results lined up with previous studies

  13. Next Steps • Develop a theoretical model • Look at other welfare dimensions • Income distribution • Education • Infrastructure • Income source diversification

  14. GRACIAS!!!! lvillalo@catie.ac.cr robalino@catie.ac.cr

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