In 1961the GPD in Costa Rica was estimated to be $336 per capita, and the backbone economic activities in the country were agricultural services, retail trading, and wholesaling (Hybel, 2020). The country is thus envisioned to have made remarkable improvements in its economic development sector because the modern Costa Rica has a conducive labor market and income distribution. Additionally, Belize has registered a slow rate in wage improvement over the past years. However, in 1941, the British authority in Belize implemented a minimal wage regulation that applied to the minimal salary for the marine team of pots working on R. Belize (Bolland, 2016). However, as one of the smallest nations in C. America, El Salvador, the country has been a victim of low wages. The low wages distribution could be manifested in the low standards of living of Salvadorians over the 40 years. However, in the recent years, there has been some hope of wage increment substantiated by the high standards of living in the country.
Just like Costa Rica, Guatemala’s strongest economic activity is based on agricultural produce. Besides, since time immemorial, the country has been victimized by low wage rates of workers, both in the rural and urban setups. The wages received for every week’s work by Guatemalan farmers can only support the provision of basic necessities such as food, water, and housing among others. Nonetheless, in the recent years the low remuneration of employees in Guatemala manifested in the rates of low income distributions in the labor markets in the country. On the same note, the economy of Honduras is determined by agricultural activities that sum up to about 14% of the country’s general domestic product (Michel et al., 2020). Besides, the restrictions in the labor markets in Honduran nation are envisioned to be the roots of low wage distribution and the increment in poverty. For this paramount reason, different households in Honduras have been living under extreme poverty states.
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Moreover, in Nicaragua, the history of wages in the last 40 years is assumed to be the same. However, in the country, wages are measured in terms of monthly ordinary minimal remunerations. Additionally, the country is perceived to be among the least developed nations in Central America even though it has a densely population structure. Nevertheless, Panama has registered a positive increment in the levels of standards of living that can be traced back from the country’s stable growth in the economic setup. Besides, the country has a conducive labor force and proper income distribution in the labor markets that support the strong economic development.
Castro-Martín et al. (2016), posited that the adopting and implementation of labor union Acts in Central American countries have been the best platform to transform economic status of the countries within the Central American territories. In Panama, for instance, the rise and development of trade unions can be traced from the last centuries (Ahlquist, 2017). Labor unions have thus been deployed as a vessel of protection against any form of trade abuse in the Central American countries. In Costa Rica, the adoption of trade unions has fueled positive changes in the economic systems of the country through safeguarding and bolstering the provision of incentives to farmers.
In conclusion, this research study unraveled that the best proof of wage history for most of the Central American countries can be traced back from their strong economic backbones. Engagement in agricultural activities for the countries relate to the level and economic systems in such nations. However, for the past 40 years the Central American countries have registered positive changes in the general economic operations, most of which emanated from the implementation of labor union acts in the C. American states.
References
Ahlquist, J. S. (2017). Labor Unions, Political Representation, and Economic Inequality. Annual Review of Political Science , 20 , 409-432.
Bolland, O. N. (2019). Belize: A New Nation in Central America . Routledge.
Castro-Martín, T., & Domínguez-Rodríguez, A. (2016). Consensual Unions in Central America: Historical Continuities and New Emerging Patterns. In Cohabitation and Marriage in the Americas: Geo historical Legacies and New Trends (pp. 157-185). Springer, Cham.
Hybel, A. R. (2020). State Creation and Democratization in Costa Rica and Guatemala. The Challenges of Creating Democracies in the Americas (pp. 209-246). Palgrave Macmillan, Cham.
Messina, J., & Silva, J. (2017). Wage Inequality in Latin America: Understanding the Past to Prepare for the Future . The World Bank.
Michel, V., & Walker, I. (2020). Honduras Jobs Diagnostic.
