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Polarization and the Middle Class in Uruguay

Author

Listed:
  • Fernando Borraz
  • Nicolás González
  • Máximo Rossi

Abstract

Some approaches to measuring the middle class are based on an arbitrary definition such as income quartiles or the poverty line. Foster and Wolfson have recently developed a methodology without arbitrariness. We apply this tool and a complementary method–the relative distribution approach–to analyze the evolution of the middle class and polarization in Uruguay during the 1994-2004 and 2004-2010 periods. During the first period, characterized by increasing income inequality, the middle class declines and income polarization increases. In the second period, which includes the recovery from the 2002 downturn, we find that the middle class increases and polarization decreases.

Suggested Citation

  • 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.
  • Handle: RePEc:ioe:cuadec:v:50:y:2013:i:2:p:289-326
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    2. repec:bla:revinw:v:63:y:2017:i:4:p:608-632 is not listed on IDEAS
    3. Khan, Haider Ali & Schettino, Francesco & Gabriele, Alberto, 2017. "Polarization and the Middle Class in China: a Non-Parametric Evaluation Using CHNS and CHIP Data," MPRA Paper 86133, University Library of Munich, Germany.
    4. Chiara Assunta Ricci, 2016. "The mobility of Italy’s middle income group," PSL Quarterly Review, Economia civile, vol. 69(277), pages 173-197.
    5. Zoya Nissanov & Maria Grazia Pittau, 2016. "Measuring changes in the Russian middle class between 1992 and 2008: a nonparametric distributional analysis," Empirical Economics, Springer, vol. 50(2), pages 503-530, March.
    6. 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.
    7. Clementi, Fabio & Molini, Vasco & Schettino, Francesco, 2018. "All that Glitters is not Gold: Polarization Amid Poverty Reduction in Ghana," World Development, Elsevier, vol. 102(C), pages 275-291.

    More about this item

    Keywords

    Income polarization; bipolarization; middle class; inequality; social policies;

    JEL classification:

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

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