IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v50y2011i1p1-28.html
   My bibliography  Save this article

Estimating the Middle Class in Pakistan

Author

Listed:
  • Durr-e-Nayab

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

The middle class is primarily an urban phenomenon generally associated with professional occupations, service sector and salaried jobs. Yet despite a general acceptance of the important economic, political and social role that the middle class plays in society, the term itself remains ambiguous and arbitrary. In much of recent literature the middle class is equated with middle income which does not reflect what „class? refers to in classical writings. The present paper takes a multidimensional approach to measure the middle class in Pakistan through a weighted composite index that takes into account all possible factors associated with the concept, including income, occupation, education, housing and lifestyle. Using the Pakistan Social and Living Measurement Survey (PSLM) 2007-08, the magnitude of the middle class in the country, as represented by the „expanded middle class?, is estimated at around 35 percent of the total population. The proposed measure of the middle class has a sense of stability attached to it, making it less susceptible to sudden inflationary shocks than an income-based measure.

Suggested Citation

  • Durr-e-Nayab, 2011. "Estimating the Middle Class in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 50(1), pages 1-28.
  • Handle: RePEc:pid:journl:v:50:y:2011:i:1:p:1-28
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2011/Volume1/1-28.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Birdsall, N. & Graham, C. & Pettinato, S., 2000. "Stuck in the Tunnel: Is Globalization Muddling the Middle Class?," Papers 14, Brookings Institution - Working Papers.
    3. Branko Milanovic & Shlomo Yitzhak, 2006. "Decomposing World Income Distribution: Does The World Have A Middle Class?," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 2(2), pages 88-110.
    4. 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.
    5. Singh, Nirvikar, 2005. "The idea of South Asia and the role of the middle class," MPRA Paper 1277, University Library of Munich, Germany.
    6. Andrea Brandolini & Silvia Magri & Timothy M. Smeeding, 2010. "Asset-based measurement of poverty," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 267-284.
    7. Anthony B. Atkinson & Andrea Brandolini, 2011. "On the identification of the “middle class”," Working Papers 217, ECINEQ, Society for the Study of Economic Inequality.
    8. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    9. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    10. Michal Brzezinski, 2010. "Income Affluence in Poland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(2), pages 285-299, November.
    11. Joseph Eisenhauer, 2008. "An Economic Definition of the Middle Class," Forum for Social Economics, Taylor & Francis Journals, vol. 37(2), pages 103-113, January.
    12. Chiara GIGLIARANO & Karl MOSLER, 2009. "Measuring middle-class decline in one and many attributes," Working Papers 333, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
    14. Joseph Eisenhauer, 2008. "An Economic Definition of the Middle Class," Forum for Social Economics, Springer;The Association for Social Economics, vol. 37(2), pages 103-113, August.
    15. Nancy Birdsall, 2010. "The (Indispensable) Middle Class in Developing Countries; or, The Rich and the Rest, Not the Poor and the Rest," Working Papers 207, Center for Global Development.
    16. Chun, Natalie, 2010. "Middle Class Size in the Past, Present, and Future: A Description of Trends in Asia," ADB Economics Working Paper Series 217, Asian Development Bank.
    17. Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(1), pages 1-13.
    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. Pakistan’s Middle-Class Rage Against Military Rule
      by Adeel Malik in Project Syndicate on 2024-02-14 16:05:43

    Citations

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


    Cited by:

    1. Adnan Shoaib & Muhammad Ayub Siddiqui, 2020. "Why do people participate in ROSCA saving schemes? Findings from a qualitative empirical study," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(2), pages 177-189, June.
    2. Amjad, Rashid & Shahzad, Almazia, 2019. "Breaking out of Pakistan’s Stop-Go Economic Cycles: Do the “Twin” Fiscal and Current Account Deficits Hold the Key? 1999-2019," MPRA Paper 106064, University Library of Munich, Germany.
    3. Lukas Schlogl & Andy Sumner, 2014. "How Middle Class are the ‘Emerging Middle’ or ‘Scooter Class’ in Indonesia? A Household Asset Approach to Social Stratification," Working Papers in Economics and Development Studies (WoPEDS) 201407, Department of Economics, Padjadjaran University, revised May 2014.
    4. Shakoor Ahmad Wani, 2021. "The New Baloch Militancy: Drivers and Dynamics," India Quarterly: A Journal of International Affairs, , vol. 77(3), pages 479-500, September.
    5. Shahzad Farid & Saif Ur Rehman Saif Abbasi & Qaisar Khalid Mahmood, 2021. "Modelling Bourdieusian Social Reproduction Theory," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 297-333, August.
    6. 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.
    7. Rashid Amjad, 2014. "Pakistan’s Growth Spurts and Reversals: A Historical Perspective," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 91-104, September.
    8. repec:pid:wpaper:2012:5 is not listed on IDEAS
    9. Khan, Suhrab & Ali, Kazim, 2024. "Who demands technical and vocational education in Pakistan? A PSLM analysis of socio-economic determinants," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 11(2), pages 250-284.
    10. Esteban Cabrera Cevallos & Edwin Buenaño, 2018. "¿Ha crecido la clase media en el Ecuador? Un análisis mediante índices de polarización del ingreso para el periodo 2007-2014," Revista de Economía del Rosario, Universidad del Rosario, vol. 21(1), pages 121-152, June.
    11. Vaqar Ahmed & Samavia Batool, 2017. "India-Pakistan Trade: Perspectives from the Automobile Sector in Pakistan," Working Papers id:12263, eSocialSciences.
    12. G. M. Arif & Shujaat Farooq, 2012. "Poverty Reduction in Pakistan: Learning from the Experience of China," PIDE Monograph Series 2012:2, Pakistan Institute of Development Economics.
    13. Muhammad Jehangir Khan & G. M. Arif, 2016. "Household Charity in Pakistan: Magnitude, Determinants and Its Importance for the Well-being of Society," PIDE-Working Papers 2016:141, Pakistan Institute of Development Economics.
    14. Rashid Amjad & Musleh Ud Din & Idrees Khawaja & Nasir Iqbal & Ahmad Waqar Qasim, 2012. "The 7th Nfc Award: An Evaluation," PIDE Monograph Series 2012:5, Pakistan Institute of Development Economics.
    15. Amjad, Rashid & Yusuf, Anam, 2014. "More and better jobs for Pakistan: Can the manufacturing sector play a greater role," MPRA Paper 59518, University Library of Munich, Germany.

    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. 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.
    2. 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.
    3. 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.
    4. Reham Rizk & Ricardo Nogales, 2017. "Revisiting the Middle-Class Myth: Evidence From A Cross-Country Analysis of African Social Progress," Working Papers 1139, Economic Research Forum, revised 09 2003.
    5. 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.
    6. 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.
    7. Anthony B. Atkinson & Andrea Brandolini, 2011. "On the identification of the “middle class”," Working Papers 217, ECINEQ, Society for the Study of Economic Inequality.
    8. Çakır, Mustafa Yavuz & Kabundi, Alain, 2013. "Trade shocks from BRIC to South Africa: A global VAR analysis," Economic Modelling, Elsevier, vol. 32(C), pages 190-202.
    9. María Edo & Walter Sosa Escudero & Marcela Svarc, 2021. "A multidimensional approach to measuring the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(1), pages 139-162, March.
    10. Berrou, Jean-Philippe & Clément, Matthieu & Combarnous, François & Darbon, Dominique & Fauré, Yves-André, 2020. "Anatomy of the Brazilian middle class: identification, behaviours and expectations," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Huynh, Phu. & Kapsos, Steven., 2013. "Economic class and labour market inclusion poor and middle class workers in developing Asia and the Pacific," ILO Working Papers 994822963402676, International Labour Organization.
    12. Abebe Shimeles & Mthuli Ncube, 2015. "The Making of the Middle-Class in Africa: Evidence from DHS Data," Journal of Development Studies, Taylor & Francis Journals, vol. 51(2), pages 178-193, February.
    13. repec:ilo:ilowps:485512 is not listed on IDEAS
    14. 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.
    15. repec:ilo:ilowps:482296 is not listed on IDEAS
    16. 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.
    17. Eisenhauer, Joseph G., 2011. "The rich, the poor, and the middle class: Thresholds and intensity indices," Research in Economics, Elsevier, vol. 65(4), pages 294-304, December.
    18. Kapsos, Steven. & Bourmpoula, Evangelia., 2013. "Employment and economic class in the developing world," ILO Working Papers 994855123402676, International Labour Organization.
    19. Rogelio Madrueño-Aguilar, 2017. "Global Income Distribution and the Middle-Income Strata: Implications for the World Development Taxonomy Debate," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 1-18, January.
    20. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    21. Simplice A Asongu & Sara Le Roux, 2019. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," International Journal of Public Administration, Taylor & Francis Journals, vol. 42(6), pages 457-467, April.
    22. Simplice A. Asongu & Sara le Roux, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," Research Africa Network Working Papers 18/012, Research Africa Network (RAN).

    More about this item

    Keywords

    Pakistan; Middle Class; Multidimensional;
    All these keywords.

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of 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:pid:journl:v:50:y:2011:i:1:p:1-28. 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: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.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.