Transfer accounts in Costa Rica’s mixed economy under rapidly changing demographic conditions

Abstract

In Costa Rica government transfers to the elderly population are exceptionally high in per capita terms. In contrast, net transfers from adult children to elderly parents are negligible until the parents reach very advanced ages. Intragenerational reallocations are also a surprisingly large source of funding of consumption at old ages. The narrow age span with a labor income surplus, combined with the early age (55 years) at which Costa Ricans start having a labor income defi cit, is another peculiarity of this country.