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Stability and Vulnerability of the Latin American Middle Class

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  • Florencia Torche
  • Luis F. López-Calva

Abstract

Using panel datasets from Mexico and Chile for the 2000s, we examine the determinants of middle-class intra-generational mobility. We define the middle class by means of a latent index of economic wellbeing that is less sensitive to short-term fluctuation and measurement error than standard measures of income. We find high rates of both upward and downward mobility in Mexico and Chile, indicating that the middle class has the opportunity to move to higher levels of wellbeing but it is also vulnerable to falling into poverty.

Suggested Citation

  • Florencia Torche & Luis F. López-Calva, 2012. "Stability and Vulnerability of the Latin American Middle Class," WIDER Working Paper Series wp-2012-098, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-098
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    Cited by:

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    2. Gayo, Modesto & Méndez, María Luisa & Teitelboim, Berta, 2016. "Tertiarization in Chile: cultural inequality and occupational structure," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Evans Tindana Awuni & Daniele Malerba & Babette Never, 2023. "Understanding Vulnerability to Poverty, COVID-19’s Effects, and Implications for Social Protection: Insights from Ghana," Progress in Development Studies, , vol. 23(3), pages 246-274, July.
    4. Bird, Richard M. & Zolt, Eric M., 2015. "Fiscal Contracting in Latin America," World Development, Elsevier, vol. 67(C), pages 323-335.
    5. Clément, Matthieu & Rougier, Eric & Berrou, Jean-Philippe & Combarnous, François & Darbon, Dominique, 2022. "“What’s in the middle”: Scratching beneath the surface of the middle class(es) in Brazil, Côte d’Ivoire, Turkey and Vietnam," World Development, Elsevier, vol. 158(C).
    6. Chiara Assunta Ricci, 2016. "Perceived Social Position and Income Inequality: Do They Move Together? Evidence from Europe and the United States," LIS Working papers 667, LIS Cross-National Data Center in Luxembourg.
    7. Rocco Zizzamia & Simone Schotte & Murray Leibbrandt & Vimal Ranchhod, 2016. "Vulnerability and the Middle Class in South Africa," SALDRU Working Papers 188, Southern Africa Labour and Development Research Unit, University of Cape Town.
    8. Javalgi, Rajshekhar (Raj) G. & Grossman, David A., 2016. "Aspirations and entrepreneurial motivations of middle-class consumers in emerging markets: The case of India," International Business Review, Elsevier, vol. 25(3), pages 657-667.

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