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Social
Gap Widened
In high-income households in
Costa Rica, income doubled
between 1988 and 2004, but the
member of the poorest families
experienced only a 7 percent
increase in theirs.
The outcome of this inequality
is a dramatically widened social
gap.
In 1988, the income of the most
affluent was 11 times larger
than that of the low-income, but
in 2004 it increased to 20
times.
Besides salaries, income
includes the payment for
independent work, transfers -
such as pensions -,rent and
others - such as inheritances.
The comparison between 1988 and
2004 does not include inflation;
therefore, the increase in
income shows the actual
additional purchase ability that
families have.
The widening of the gap is one
of the major changes mirroring
in the National Income and
Expenses Survey, made by the
National Statistics and Census
Board.
President Abel Pacheco said that this is the reason for his promotion of a
fiscal reform "to make the
wealthy pay taxes according to
their income; to fight, among
other things, the concentration
of income which is taking
place."
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