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I had no idea. Sure gives you understanding that Costa Rica is in an Economic death spiral.

 

http://www.centralamericadata.com/en/article/main/The_State_is_Distorting_the_Labor_Market?u=f4d4013e3f29495b9ca7d5dd7cd09528&s=n&e=3&mid=[MESSAGEID]

 

The State is Distorting the Labor Market In Costa Rica civil servants earn on average 150% more than workers in the private sector, which contributes decisively to the growth of inequality and lowers the overall competitiveness of human resources.

Editorial

A study by the deputy Otto Guevara, according to a report by Crhoy.com, confirms the distortion generated by the wage policy of the Costa Rican public sector in the labor market in the country.

Through remuneration systems that favor the stability of the employee and reward the simple continuity in a post beyond the adequacy with which tasks are executed, it is possible that even within the same institution one driver of a light vehicle can receive $300 a month, while another one earns $3,750.

Other cases mentioned in the article by Crhoy.com include:

"...In the State Distance University (UNED), while one secretary earns $152 another gets more than $4300. "

"... One janitor at the University of Costa Rica (UCR) earns a salary of more than $2,400, while another janitor who performs the same functions, earns only $74. "

 

 

 

 

In Costa Rica, a country of 4.5 million inhabitants of which 20% live in poverty, there are 1,600 government officials whose monthly salaries are over $10,000, some reaching up to $70,000 a month. The huge difference between state and private wages generates direct distortions in the labor market, and indirect ones in the work habits of the population.

 

http://www.centralamericadata.com/en/article/home/Corporatism_of_Public_Sector_in_Costa_Rica

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Who can believe that a government employee could have better wages and benefits than the private sector? That would never happen in the U.S.

 

No wonder the country is going to hell!

 

T

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Who can believe that a government employee could have better wages and benefits than the private sector? That would never happen in the U.S.

 

I promise you that that was indeed the situation when I worked for the State of Florida, State University System (SUS) at USF for thirty-five years before retiring.

 

I started in 1972 at $90.00 per wk. I did not break $10.00 per hr for twenty (20!) years with them, and finally ended with a salary of only $31,000 per yr at the end of my tenure with them.

 

At the time I started working for them back in 1972 a single mother with 2 children in an entry level position was paid so little that she was able to apply for and receive Food Stamps. When I ended my tenure in 2007 a single mother with 2 children at entry level was sstill able to apply for Food Stamps! The Dept of Education of the State of Florida of which the SUS is part of is still the lowest paying governmental entity in Florida. That's cheap!

 

Regards,

 

Paul M.

==

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There is another problem distorting the income gap besides the high government salaries. Costa Rica is the number one country based on population in ALL of Latin America for the inflow of illicit money as reported by La Nacion.

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I had no idea. Sure gives you understanding that Costa Rica is in an Economic death spiral.

 

http://www.centralamericadata.com/en/article/main/The_State_is_Distorting_the_Labor_Market?u=f4d4013e3f29495b9ca7d5dd7cd09528&s=n&e=3&mid=[MESSAGEID]

 

The State is Distorting the Labor Market In Costa Rica civil servants earn on average 150% more than workers in the private sector, which contributes decisively to the growth of inequality and lowers the overall competitiveness of human resources.

 

 

 

 

You've used the phrase Economic Death Spiral. What is your prediction of what will happen in Costa Rica?

 

Seems these unusual conditions have been around for awhile. They may not be fair, but many things in life are not fair. Does not necessarily mean the system will collapse, does it?

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You've used the phrase Economic Death Spiral. What is your prediction of what will happen in Costa Rica?

 

Seems these unusual conditions have been around for awhile. They may not be fair, but many things in life are not fair. Does not necessarily mean the system will collapse, does it?

50% of the budget is borrowed money. Moody's just down graded Costa Rican bonds. Solis says no changes for two years. Anyone that wants to reign the govt sector is almost committing suicide. Looks pretty bad to me. But hey what do i know?

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