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Stuck in the Tunnel: Is Globalization Muddling the Middle Class?

Listed author(s):
  • Carol Graham

    ()

  • Stefano Pettinato

    ()

  • Nancy Birdsall

    ()

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    Our objective in this paper is to assess how middle-income groups are faring with the global turn to the market. We suggest some simple measures of the middle-the size and income shares of households around the median (75/125%)-and their income status relative to wealthier counterparts. Our results point to genuine distributional stress for middle-income households, as well as public perceptions of such stress. They also suggest the need for new measures to capture distributional trends that are masked by aggregate measures. We posit that the fate of those in the middle merits new attention, as their political support and economic participation are critical to sustainable, market-oriented growth and poverty reduction in the long-term.

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    File URL: http://www.lisdatacenter.org/wps/liswps/277.pdf
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    Paper provided by LIS Cross-National Data Center in Luxembourg in its series LIS Working papers with number 277.

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    Length: 39 pages
    Date of creation: Aug 2000
    Handle: RePEc:lis:liswps:277
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    1. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    2. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 447-487.
    3. Vito Tanzi, 2000. "Globalization and the Future of Social Protection," IMF Working Papers 00/12, International Monetary Fund.
    4. Kanbur, Ravi & Lustig, Nora, 1999. "Why is Inequality Back on the Agenda?," Working Papers 127690, Cornell University, Department of Applied Economics and Management.
    5. Cornia, G.A., 1999. "Liberalization, Globalization and Income Distribution," Research Paper 157, World Institute for Development Economics Research.
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