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We forgot the middle class! Inequality underestimation in a changing Sub-Saharan Africa

Author

Listed:
  • F. Clementi

    (University of Macerata)

  • A. L. Dabalen

    (World Bank)

  • V. Molini

    (World Bank)

  • F. Schettino

    (University of Campania “Luigi Vanvitelli”)

Abstract

The creation of national middle classes and the changes in consumption patterns in many Sub-Saharan African (SSA) countries suggest reconsidering the way welfare and consequently inequality is typically measured. Using only consumption to measure welfare can lead to an important loss of information regarding the real welfare of the top 10–20% of the welfare distribution that is generally referred as “middle class” in these countries. This paper proposes a method capable of correcting the middle-class part of the consumption distribution using information coming from the income distribution of the same surveys. Results from 6 SSA countries indicate an increase of about 20% in the Gini index.

Suggested Citation

  • F. Clementi & A. L. Dabalen & V. Molini & F. Schettino, 2020. "We forgot the middle class! Inequality underestimation in a changing Sub-Saharan Africa," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(1), pages 45-70, March.
    • Handle: RePEc:spr:joecin:v:18:y:2020:i:1:d:10.1007_s10888-019-09432-8
    DOI: 10.1007/s10888-019-09432-8
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    More about this item

    Keywords

    Middle class; Inequality; Sub-Saharan Africa; Consumption and income; Combined distribution;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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