Causes of Significant Income Inequalities in Nicaragua and Possible Solutions

The thesis examines the causes of significant income inequalities in Nicaragua and potential measures that could be taken to reduce them. The causes were found in the existence of extractive institutions based on nepotism, which led to the economic independence of broad mass of the population being suppressed in the long-term. Since there were found relatively sharp differences between urban and rural areas among the particular causes, it was suggested to transfer part of investments, in terms of economic policies, into the subsistence, mainly the agricultural sector. Further, were the measures related to broader access to education, health services and also to institutional changes in the long run