Economic Mobility and the Rise of the Latin American Middle Class

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dc.contributor.author
Ferreira, Francisco H.G.
en_US
dc.contributor.author
Messina, Julian
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dc.contributor.author
Rigolini, Jamele
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dc.contributor.author
López-Calva, Luis-Felipe
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dc.contributor.author
Lugo, Maria Ana
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dc.contributor.author
Vakis, Renos
en_US
dc.date.accessioned
2012-11-13T15:44:37Z
en_US
dc.date.available
2012-11-13T15:44:37Z
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dc.date.issued
2013
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dc.identifier.isbn
978-0-8213-9634-6
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dc.identifier.uri
http://hdl.handle.net/10986/11858
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dc.description.abstract
After decades of stagnation, the size of Latin America's middle class recently expanded to the point where, for the first time ever, the number of people in poverty is equal to the size of the middle class. This volume investigates the nature, determinants and possible consequences of this remarkable process of social transformation. We propose an original definition of the middle class, tailor-made for Latin America, centered on the concept of economic security and thus a low probability of falling into poverty. Given our definition of the middle class, there are four, not three, classes in Latin America. Sandwiched between the poor and the middle class there lies a large group of people who appear to make ends meet well enough, but do not enjoy the economic security that would be required for membership of the middle class. We call this group the 'vulnerable'. In an almost mechanical sense, these transformations in Latin America reflect both economic growth and declining inequality in over the period. We adopt a measure of mobility that decomposes the 'gainers' and 'losers' in society by social class of each household. The continent has experienced a large amount of churning over the last 15 years, at least 43% of all Latin Americans changed social classes between the mid 1990s and the end of the 2000s. Despite the upward mobility trend, intergenerational mobility, a better proxy for inequality of opportunity, remains stagnant. Educational achievement and attainment remain to be strongly dependent upon parental education levels. Despite the recent growth in pro-poor programs, the middle class has benefited disproportionally from social security transfers and are increasingly opting out from government services. Central to the region's prospects of continued progress will be its ability to harness the new middle class into a new, more inclusive social contract, where the better-off pay their fair share of taxes, and demand improved public services.
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dc.language.iso
en
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dc.publisher
Washington, DC: World Bank
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dc.relation.ispartofseries
Latin America and Caribbean Studies;
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dc.rights
CC BY 3.0 IGO
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dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
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dc.subject
Inequality
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dc.subject
Measurement
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dc.subject
Middle Class
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dc.subject
Mobility
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dc.subject
Poverty
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dc.subject
Social Class
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dc.subject
Vulnerability
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dc.title
Economic Mobility and the Rise of the Latin American Middle Class
en_US
okr.date.disclosure
2012-11-13
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okr.topic
Social Development
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okr.topic
Poverty Reduction
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okr.topic
Culture and Development
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okr.topic
Social Inclusion and Institutions
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okr.topic
Population Policies
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okr.topic
Inequality
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okr.topic
Rural Poverty Reduction
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okr.topic
Teaching and Learning
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okr.topic
Health, Nutrition and Population
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okr.topic
Education
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okr.theme
Social protection and risk management
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okr.theme
Social dev/gender/inclusion
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okr.region.administrative
Latin America & Caribbean
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okr.region.geographical
Latin America and the Caribbean
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okr.unit
Office of the Chief Economist for Latin America & the Caribbean
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okr.doctype
Publication
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dc.rights.holder
World Bank
en_US
okr.googlescholar.linkpresent
yes

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