Regional Income Disparities in Panama
Selected Issues Papers, September 16, 2025
Source details
- Canonical URL
- Regional Income Disparities in Panama
Other formats
Bibliographic details
- Authors: Mai Hakamada
- Published: September 16, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229026048.018
Summary findings
- Panama exhibits high income inequality driven largely by disparities between regions rather than within them.
- The Panama Canal corridor, including Panama City and Colón, concentrates economic activities with high labor productivity and incomes.
- Rural and indigenous provinces face structural constraints resulting in low productivity and poverty.
Drivers and accounting decomposition
- Accounting decomposition shows regional income gaps stem mainly from labor productivity differences.
- Labor productivity differences are influenced by:
- population density
- sectoral composition
- education
- healthcare access
- infrastructure
- These factors collectively underpin Panama’s pronounced regional income disparities.
Regional contrasts
- Panama Canal corridor (Panama City and Colón):
- Concentrated economic activities
- High labor productivity
- High incomes
- Rural and indigenous provinces:
- Poor infrastructure
- Limited education
- High informality
- Low productivity
- High poverty
Policy implications (identified constraints)
- Addressing infrastructure deficits, education gaps, healthcare access, and informality is central to reducing regional labor productivity gaps and overall income disparities.
Source: Regional Income Disparities in Panama, September 16, 2025, Selected Issues Papers.
Content in this bundle
- Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025