[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/dls/wpaper/0113.html
   My bibliography  Save this paper

Down and Out or Up and In? Polarization-Based Measures of the Middle Class for Latin America

Author

Listed:
  • Guillermo Cruces

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP, CONICET, e IZA)

  • Luis Felipe López Calva

    (The World Bank)

  • Diego Battistón

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP, y CONICET)

Abstract
This document presents a systematic review of empirical approaches to the identification and measurement of the middle class as the concept is used in the applied literature. It then presents an arguably less arbitrary definition of the middle class which is based on sound principles of distributional analysis and derived from income polarization measures. The document illustrates the differences between the existing approaches and the proposed methodology with a comparative analysis of the extent and evolution of the middle classes since the early 1990s in six Latin American countries. The polarization-based measurements of the middle class are shown to exhibit a greater degree of homogeneity in terms of some key socioeconomic characteristics than other measures employed in the literature.

Suggested Citation

  • Guillermo Cruces & Luis Felipe López Calva & Diego Battistón, 2011. "Down and Out or Up and In? Polarization-Based Measures of the Middle Class for Latin America," CEDLAS, Working Papers 0113, CEDLAS, Universidad Nacional de La Plata.
  • Handle: RePEc:dls:wpaper:0113
    as

    Download full text from publisher

    File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas113.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. ,, 2001. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 17(6), pages 1157-1160, December.
    2. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    3. Birdsall, N. & Graham, C. & Pettinato, S., 2000. "Stuck in the Tunnel: Is Globalization Muddling the Middle Class?," Papers 14, Brookings Institution - Working Papers.
    4. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Marcelo Medeiros, 2006. "The Rich and the Poor: The Construction of an Affluence Line from the Poverty Line," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 78(1), pages 1-18, August.
    7. James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 247-273, June.
    8. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    9. ,, 2001. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 17(5), pages 1025-1031, October.
    10. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 158-183, December.
    11. Ravallion, Martin, 2010. "The Developing World's Bulging (but Vulnerable) Middle Class," World Development, Elsevier, vol. 38(4), pages 445-454, April.
    12. repec:unu:wpaper:wp2012-98 is not listed on IDEAS
    13. Goldthorpe, John H. & McKnight, Abigail, 2004. "The economic basis of social class," LSE Research Online Documents on Economics 6312, London School of Economics and Political Science, LSE Library.
    14. Conchita D'Ambrosio & Pietro Muliere & Piercesare Secchi, 2003. "Income Thresholds and Income Classes," Discussion Papers of DIW Berlin 325, DIW Berlin, German Institute for Economic Research.
    15. John H Goldthorpe & Abigail McKnight, 2004. "The Economic Basis of Social Class," CASE Papers 080, Centre for Analysis of Social Exclusion, LSE.
    16. Andreas Peichl & Thilo Schaefer & Christoph Scheicher, 2010. "Measuring Richness And Poverty: A Micro Data Application To Europe And Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 597-619, September.
    17. Abdelkrim Araar, 2008. "Social Classes, Inequality and Redistributive Policies in Canada," Cahiers de recherche 0817, CIRPEE.
    18. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
    19. World Bank, 2007. "Global Economic Prospects 2007 : Managing the Next Wave of Globalization," World Bank Publications - Books, The World Bank Group, number 7157.
    20. Leonardo Gasparini & Guillero Cruces & Leopoldo Tornarolli, 2011. "Recent Trends In Income Inequality In Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 147-201, January.
    21. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
    22. Solimano, Andrés, 2008. "The middle class and the development process," Macroeconomía del Desarrollo 5432, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. ¿No es la hora de la clase media?
      by Cecilia Rossel in Razones y personas: repensando Uruguay on 2012-11-29 21:03:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lopez-Calva Luis F. & Rigolini Jamele & Torche Florencia, 2016. "Is there such thing as middle class values? Class differences, values and political orientations in Latin America," Journal of Globalization and Development, De Gruyter, vol. 7(2), pages 1-12, December.
    2. Sebastien Carrere & Clement Mathieu & Francois Combarnous & Gabriel Kessker & Eric Rougier & Ariel Wilkis, 2022. "The middle class in Argentina: Dynamics, characteristics and implications for public policies," Post-Print hal-03773031, HAL.
    3. Lina Martínez & John Rennie Short & Maria Isabel Zafra, 2019. "A Fragile Hold on Consumption: Consumption and the New Middle Class in Colombia," Review of European Studies, Canadian Center of Science and Education, vol. 11(3), pages 1-73, December.
    4. Chiara Assunta Ricci, 2016. "Perceived Social Position and Income Inequality: Do They Move Together? Evidence from Europe and the United States," LIS Working papers 667, LIS Cross-National Data Center in Luxembourg.
    5. repec:cte:whrepe:wp15-09 is not listed on IDEAS
    6. Ricci, Chiara Assunta & Scicchitano, Sergio, 2021. "The role of Great Recession on income polarization by population groups," GLO Discussion Paper Series 766, Global Labor Organization (GLO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gustavo Canavire‐Bacarreza & Michael Jetter & Marcos Robles, 2018. "When Does Economic Growth Reduce Poverty and Strengthen the Middle Class? A State‐Level, Sector‐Specific Analysis of Peru," Southern Economic Journal, John Wiley & Sons, vol. 84(4), pages 1067-1087, April.
    2. Loayza, Norman & Rigolini, Jamele & Llorente, Gonzalo, 2012. "Do middle classes bring about institutional reforms?," Economics Letters, Elsevier, vol. 116(3), pages 440-444.
    3. Sofía Plata, 2020. "Impacto de la estructura fiscal en el tamaño de la clase media," Documentos de Trabajo (working papers) 0920, Department of Economics - dECON.
    4. Alberto Batinti & Joan Costa‐Font, 2020. "Do economic recessions “squeeze the middle class”?," Economics and Politics, Wiley Blackwell, vol. 32(3), pages 335-355, November.
    5. Vasiliy A. Anikin & Yulia P. Lezhnina & Svetlana V. Mareeva & Ekaterina D. Slobodenyuk & Nataliya N. Tikhonovà, 2016. "Income Stratification: Key Approaches and Their Application to Russia," HSE Working papers WP BRP 02/PSP/2016, National Research University Higher School of Economics.
    6. Carlos Sánchez-González & Rosa M. García-Fernández, 2020. "A Multivariate Indicator to Compute Middle Class Population," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 1-14, January.
    7. repec:cte:whrepe:wp15-09 is not listed on IDEAS
    8. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class†Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers id:5169, eSocialSciences.
    9. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
    10. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class” Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers 309, Center for Global Development.
    11. Chun, Natalie & Hasan, Rana & Rahman, Muhammad Habibur & Ulubaşoğlu, Mehmet A., 2016. "The role of middle class in democratic diffusion," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 536-548.
    12. Alain Desdoigts & Fernando Jaramillo, 2020. "Bounded Learning by Doing, Inequality, and Multi-Sector Growth: A Middle-Class Perspective," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 36, pages 198-219, April.
    13. Florencia Torche & Luis F. Lopez-Calva, 2013. "Stability and Vulnerability of the Latin American Middle Class," Oxford Development Studies, Taylor & Francis Journals, vol. 41(4), pages 409-435, December.
    14. C�line Bonnefond & Matthieu Cl�ment & Fran�ois Combarnous, 2015. "In search of the elusive Chinese urban middle class: an exploratory analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 27(1), pages 41-59, March.
    15. Florencia Torche & Luis F. Lopez-Calva, 2013. "Stability and Vulnerability of the Latin American Middle Class," Oxford Development Studies, Taylor & Francis Journals, vol. 41(4), pages 409-435, December.
    16. Jean-Philippe BERROU & Matthieu CLÉMENT & François COMBARNOUS & Dominique DARBON & Yves-André FAURE & Éric ROUGIER, 2019. "L’essor des classes moyennes dans les pays en développement et émergents : une étude comparative des enjeux d’identification, de caractérisation et de politiques publiques," Working Paper d25da1cf-d9d8-4336-9930-b, Agence française de développement.
    17. Mariam Shahzadi & Muhammad Faraz Riaz & Sofia Anwar & Samia Nasreen, 2017. "How unequal is the size of middle class in the rural urban areas of Punjab province," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(2), pages 253-266, February.
    18. María Gómez-León, 2015. "The Rise of the Middle Class, Brazil (1839-1950)," Working Papers 0091, European Historical Economics Society (EHES).
    19. Ronelle Burger & Cindy Lee Steenekamp & Servaas van der Berg & Asmus Zoch, 2014. "The middle class in contemporary South Africa: Comparing rival approaches," Working Papers 11/2014, Stellenbosch University, Department of Economics.
    20. Arjun Jayadev & Rahul Lahoti & Sanjay Reddy, 2015. "The Middle Muddle: Conceptualizing and Measuring the Global Middle Class," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 193, Courant Research Centre PEG.
    21. Oasis Kodila-Tedika & Simplice A. Asongu & Julio Mukendi Kayembe, 2016. "Middle Class in Africa: Determinants and Consequences," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 527-549, October.

    More about this item

    Keywords

    middle class; distribution; polarization; Latin America;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D6 - Microeconomics - - Welfare Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dls:wpaper:0113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Pacheco (email available below). General contact details of provider: https://edirc.repec.org/data/funlpar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.