Polarization and the Middle Class
AbstractThere is an increasing literature that discusses how to measure the middle class. Some approaches are based on an arbitrary deÖnition such as income quartiles or the poverty line. Recently, Foster and Wolfson developed a methodology which lacks of arbitrariness that enables us to compare the middle class of two di§erent income distributions. We apply this new tool jointly with a complementary method ñrelative distribution approach- to household income data in 1994-2004 and 2004-2010, to analyze the evolution of the middle class and polarization in Uruguay. During the Örst period, which is characterized by an increasing income inequality, we Önd that the middle class declined and income polarization increased. In the second one, where the Uruguayan economy experienced a recovery from the downturn su§ered in 2002, we Önd that the middle class rose and polarization decreased. However, this last result is attenuated when we do not consider the household income imputation because of the new health system implemented in 2008.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 2011.
Length: 37 pages
Date of creation: Aug 2011
Date of revision:
Contact details of provider:
Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
More information through EDIRC
income polarization; middle class; inequality; social policies; bipolarization;
Other versions of this item:
- Fernando Borraz & Nicolás González & Máximo Rossi, 2013. "Polarization and the Middle Class in Uruguay," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(2), pages 289-326, November.
- D3 - Microeconomics - - Distribution
- D6 - Microeconomics - - Welfare Economics
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-22 (All new papers)
- NEP-LAM-2011-09-22 (Central & South America)
- NEP-LTV-2011-09-22 (Unemployment, Inequality & Poverty)
- NEP-POL-2011-09-22 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- marina, azzimonti, 2009.
"Barriers to investment in polarized societies,"
25936, University Library of Munich, Germany.
- François Bourguignon & Christian Morrisson, 2002.
"Inequality Among World Citizens: 1820-1992,"
American Economic Review,
American Economic Association, vol. 92(4), pages 727-744, September.
- Joan-Maria Esteban & Debraj Ray, 1991.
"On the Measurement of Polarization,"
Boston University - Institute for Economic Development
18, Boston University, Institute for Economic Development.
- Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Fernando Borraz & Nicolás González, 2009. "Impact of the Uruguayan Conditional Cash Transfer Program," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 46(134), pages 243-271.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
- Banerjee, Abhijit & Duflo, Esther, 2007.
"What is Middle Class about the Middle Classes Around the World?,"
CEPR Discussion Papers
6613, C.E.P.R. Discussion Papers.
- 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.
- Esther Duflo & Abhijit Banerjee, 2008. "What is Middle Class About the Middle Classes Around the World?," Working Papers id:1363, eSocialSciences.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999.
"Inequality and economic growth: the perspective of the new growth theories,"
CEPREMAP Working Papers (Couverture Orange)
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
- Robert J. Barro, 1999.
"Determinants of Democracy,"
Journal of Political Economy,
University of Chicago Press, vol. 107(S6), pages S158-S183, December.
- Lykke Andersen, 2001. "Social Mobility in Latin America: Links with Adolescent Schooling," Research Department Publications 3130, Inter-American Development Bank, Research Department.
- Eduardo Lora & Deisy Johanna Fajardo, 2011. "Latin American Middle Classes: The Distance between Perception and Reality," Research Department Publications 4727, Inter-American Development Bank, Research Department.
- Easterly, William, 2001.
" The Middle Class Consensus and Economic Development,"
Journal of Economic Growth,
Springer, vol. 6(4), pages 317-35, December.
- Easterly, William, 2000. "the middle class consensus and economic development," Policy Research Working Paper Series 2346, The World Bank.
- Riccardo Massari & Maria Pittau & Roberto Zelli, 2009. "A dwindling middle class? Italian evidence in the 2000s," Journal of Economic Inequality, Springer, vol. 7(4), pages 333-350, December.
- Marcelo Bérgolo & Guillermo Cruces, 2011. "Labor Informality and the Incentive Effects of Social Security: Evidence from a Health Reform in Uruguay," IDB Publications 62318, Inter-American Development Bank.
- Leonardo Gasparini & Matias Horenstein & Ezequiel Molina & Sergio Olivieri, 2008. "Income Polarization in Latin America: Patterns and Links with Institutions and Conflict," Oxford Development Studies, Taylor & Francis Journals, vol. 36(4), pages 461-484.
- Lopez-Calva, Luis F. & Ortiz-Juarez, Eduardo, 2011. "A vulnerability approach to the definition of the middle class," Policy Research Working Paper Series 5902, The World Bank.
- Fabio Clementi & Francesco Schettino, 2013.
"Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data,"
AccessEcon, vol. 33(3), pages 1796-1815.
- Clementi, F. & Schettino, F., 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149891, Italian Association of Agricultural and Applied Economics (AIEAA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Irene Musio) or (Héctor Pastori).
If references are entirely missing, you can add them using this form.