What Defines Middle Class in Latin America (study)

MEASUREMENT AND CHARACTERIZATION OF
THE MIDDLE CLASS
IN LATIN AMERICA
1
Maria F. Cortés
Public Policy Consultant
Econometría Consultores
Nancy
A. Daza
Researcher at Directorate of Economic Studies
National Planning
Department
of Colombia
Abstract
The present research aims to compare and improve the measurement and, therefore,
the definition 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 definition 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) classifi
cation. Additionally, some findings 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 defined, the measurements will help governments of
the region to refocus or improve the design and implementation of their social
programs and policies that aim to reduce economic opportunity gaps. Read Article PDF