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The Strugglers: The New Poor in Latin America?

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  • Birdsall, Nancy
  • Lustig, Nora
  • Meyer, Christian J.

Abstract

We identify a group of people in Latin America that are not poor but not middle class either—namely “strugglers” in households with daily income per capita between $4 and $10 (at constant 2005 PPP). This group will account for about a third of the region’s population over the next decades; as the size and income of the middle class rises, they could become increasingly marginalized. The cash transfers they receive are largely offset by indirect taxes; the benefit of schooling and other in-kind transfers they receive is questionable after adjusting for quality. We discuss implications for the social contract.

Suggested Citation

  • Birdsall, Nancy & Lustig, Nora & Meyer, Christian J., 2014. "The Strugglers: The New Poor in Latin America?," World Development, Elsevier, vol. 60(C), pages 132-146.
    • Handle: RePEc:eee:wdevel:v:60:y:2014:i:c:p:132-146
    DOI: 10.1016/j.worlddev.2014.03.019
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