{
  "title": "Regional Income Disparities in Panama",
  "publication": "Selected Issues Papers, September 16, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426",
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  "summary": "Panama exhibits high income inequality largely driven by disparities between regions rather than within them. The Panama Canal corridor, including Panama City and Colón, benefits from concentrated economic activities with high labor productivity and incomes.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Panama exhibits high income inequality driven largely by disparities between regions rather than within them.\n- The Panama Canal corridor, including Panama City and Colón, concentrates economic activities with high labor productivity and incomes.\n- Rural and indigenous provinces face structural constraints resulting in low productivity and poverty."
    },
    {
      "heading": "Drivers and accounting decomposition",
      "content": "- Accounting decomposition shows regional income gaps stem mainly from labor productivity differences.\n- Labor productivity differences are influenced by:\n  - population density\n  - sectoral composition\n  - education\n  - healthcare access\n  - infrastructure\n- These factors collectively underpin Panama’s pronounced regional income disparities."
    },
    {
      "heading": "Regional contrasts",
      "content": "- Panama Canal corridor (Panama City and Colón):\n  - Concentrated economic activities\n  - High labor productivity\n  - High incomes\n- Rural and indigenous provinces:\n  - Poor infrastructure\n  - Limited education\n  - High informality\n  - Low productivity\n  - High poverty"
    },
    {
      "heading": "Policy implications (identified constraints)",
      "content": "- Addressing infrastructure deficits, education gaps, healthcare access, and informality is central to reducing regional labor productivity gaps and overall income disparities.\n\nSource: Regional Income Disparities in Panama, September 16, 2025, Selected Issues Papers.\n\n---\n\n Content in this bundle\n\n- Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025\n  - Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/16/regional-income-disparities-in-panama-570426"
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    "Authors: Mai Hakamada",
    "Published: September 16, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229026048.018",
    "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.",
    "Accounting decomposition shows regional income gaps stem mainly from labor productivity differences.",
    "Labor productivity differences are influenced by:",
    "These factors collectively underpin Panama’s pronounced regional income disparities.",
    "Panama Canal corridor (Panama City and Colón):",
    "Rural and indigenous provinces:",
    "Addressing infrastructure deficits, education gaps, healthcare access, and informality is central to reducing regional labor productivity gaps and overall income disparities.",
    "**Regional Income Disparities in Panama; IMF Selected Issues Paper No. 2025/125; July 9, 2025**"
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