Cygnus and Bilko raised some excellent points and rather than expound further on that I'll leave it at what they said so well. Instead I'll comment on some other aspects of points that were raised.
Puff wrote:
Pardon my niavete but here is what I don't understand. When I eat at the News Cafe if is usually filled with Ticos and Ticas (no not with mongers). I also notice that a typical meal there is same or not much less then in the U.S.. Now if they are only making between 10 and 20 dollars per day why are they spending it almost all just on lunch?
There are a number of possible explanations including the possibility that they're ordering from a different menu and getting tico prices. There is also the point raised by Cygnus that maybe they're really earning more than you think and not spending as a high a portion of their disposable income as you think. But here is a question for you. In the US, if you go into Neiman Marcus it is usually filled with shoppers. If they're making the typical US income how can they afford to shop there? Answer: they're not making the typical US income. They generally come from the wealthier classes of our society. The typical Tico can not afford to go to expensive restaurants every day, but some can. OTOH, using Cali's scale a $2 lunch at a tico soda is equivalent to a $12 lunch in the US, more than I like to spend everyday but not that outrageous for many cities in the US.
Now Cali's argument is a bit more complex and interesting. I actually agree with his analysis for the most part. Another problem with it besides what Bilko and Cygnus ahave already pointed out is that it ignores differences from the median that are unique to each country. Okay, maybe we sometimes overpay for hookers when we compare it to relative CR median levels of income. But maybe that is just a reflection of what the market will bear.
Consider this, according to DD's AMCostaRica article, in CR the minimum wage for someone like a janitor, a messenger or an elevator operator is $253 while a university master’s degree holder is $576. A private accountant, my occupation, gets $423/month, or only about 67% more than a janitor. In the US, a janitor makes, what, maybe 18-20K/yr and a typical accountant makes about $50k/yr or over 167% more than janitor. Of course, I do even better than that

. Using logic similar to Cali's, I'm being comparatively overpaid. That very well might be true, but
I certainly don't see it that way.
Here's an example the other way. According to DD's article a journalist in CR gets a minimum of $710/month or about 180% more than the poor janitor. In the US, what does a typical reporter get? Maybe $40K/year unless he's a broadcast star like Dan Rather. That's only a little over 100% more than the janitor. EUsing Cali's logic, either our guys are way underpaid or their reporters are getting way too much.
Okay, so what does all this mean and who really cares what CR reporters or little old Prolijo gets paid? The point is that you can't simply compare median incomes and say that prostitutes in CR should get paid 1/6 of what they get paid in the US. It really all depends on what the local market will bear. A better argument for paying them less is the rates that chicas will work for in the typical tico MP's.