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Measurement and characterization of the middle class in Latin America

Author

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  • Nancy Aireth DAZA BAEZ
  • Maria Fernanda CORTES

Abstract

The present research aims to compare and improve the measurement and, therefore, the de finition of what "middle class" represents, for a group of countries in Latin America, namely Colombia,Mexico, Peru, Brazil and Ecuador, using a methodology based on the expenditure of households, compared to the most common approach that uses income as a referent variable. It looks for a de nition of middle class according to particularities inherent to Latin American social composition, and develops a characterization of the sample countries, according to the World Bank GDP (PPP- 2010) classi cation. Additionally, some ndings about wealth distribution are pinpointed using GINI measurements. For the proposed measurements, this study uses household survey data collected with similar objectives and techniques in each of the sample countries in order to quantify and qualify middle classes. Once de ned, the measurements will help governments of the region to re-focus or improve the design and implementation of their social programs and policies that aim to reduce economic opportunity gaps.

Suggested Citation

  • Nancy Aireth DAZA BAEZ & Maria Fernanda CORTES, 2013. "Measurement and characterization of the middle class in Latin America," Archivos de Economía 11206, Departamento Nacional de Planeación.
    • Handle: RePEc:col:000118:011206
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    More about this item

    Keywords

    Middle class; Latin America; Inequality; Income; Expenditure;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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