Publication: A Methodology for Updating International Middle-Class Lines for the Latin American and Caribbean Region
Date
2023-05-22
ISSN
Published
2023-05-22
Author(s)
Abstract
The middle class in Latin America and
the Caribbean has been a central focus of policy debates in
the region since the COVID-19 pandemic began. To identify
and track vulnerable and middle-class populations
accurately, it is necessary to update the upper and lower
bounds for the middle class using 2017 purchasing power
parity exchange rates. This paper contributes with a
two-step methodology for updating these thresholds. The
method indicates that updating the $13 lower-bound line in
2011 purchasing power parity dollars to 2017 purchasing
power parity dollars results in a vulnerability line of $14.
The study also finds an upper bound of $81 per person per
day in 2017 purchasing power parity, compared with $70 in
2011 purchasing power parity. These thresholds are robust to
a variety of assumptions and methodologies. The results of
this study indicate that the proportion of the population in
Latin America and the Caribbean classified as middle class
increased from 36.3 percent in 2011 to 37.2 percent in 2017.
However, there were no significant changes in the
characteristics of this group.
Link to Data Set
Citation
“Fernandez, Jaime; Olivieri, Sergio; Sanchez, Diana. 2023. A Methodology for Updating International Middle-Class Lines for the Latin American and Caribbean Region. Policy Research Working Papers; 10447. © World Bank, Washington, DC. http://hdl.handle.net/10986/39834 License: CC BY 3.0 IGO.”