IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v29y2017i1d10.1057_ejdr.2015.61.html
   My bibliography  Save this article

Global Income Distribution and the Middle-Income Strata: Implications for the World Development Taxonomy Debate

Author

Listed:
  • Rogelio Madrueño-Aguilar

    (Ibero-America Institute for Economic Research, University of Göttingen)

Abstract

At the heart of the debate about the middle-income strata has been the question: How accurate are traditional measures of the knowledge of middle-income segments and their distribution between and within countries? The article analyses the recent shifts in the World Bank’s Country Income Classification, which rests on income thresholds. It also explores the implications of those changes for the way the emergence of the middle strata is conceived at international, regional and national levels. To that end, a particular emphasis is given to the Latin American region. The aim is to raise awareness on widespread shortcomings and drawbacks regarding the composition of the world development taxonomy and the conventional notion of the middle-income strata.

Suggested Citation

  • Rogelio Madrueño-Aguilar, 2017. "Global Income Distribution and the Middle-Income Strata: Implications for the World Development Taxonomy Debate," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 1-18, January.
  • Handle: RePEc:pal:eurjdr:v:29:y:2017:i:1:d:10.1057_ejdr.2015.61
    DOI: 10.1057/ejdr.2015.61
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/ejdr.2015.61
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/ejdr.2015.61?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Angus Maddison, 2004. "Quantifying and interpreting world development: macromeasurement before and after Colin Clark," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 44(1), pages 1-34, March.
    2. Simon Kuznets, 1934. "National Income, 1929-1932," NBER Books, National Bureau of Economic Research, Inc, number kuzn34-1.
    3. Joseph Stiglitz & Amartya K. Sen & Jean-Paul Fitoussi, 2009. "The measurement of economic performance and social progress revisited: Reflections and Overview," SciencePo Working papers Main hal-01069384, HAL.
    4. Nancy Birdsall, 2012. "A Note on the Middle Class in Latin America," Working Papers 303, Center for Global Development.
    5. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
    6. Birdsall, N. & Graham, C. & Pettinato, S., 2000. "Stuck in the Tunnel: Is Globalization Muddling the Middle Class?," Papers 14, Brookings Institution - Working Papers.
    7. Jose Antonio Alonso & Ana Luiza Cortez & Stephan Klasen, 2014. "LDC and other country groupings: How useful are current approaches to classify countries in a more hetergeneous developing world?," CDP Background Papers 021, United Nations, Department of Economics and Social Affairs.
    8. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
    9. Branko Milanovic & Shlomo Yitzhak, 2006. "Decomposing World Income Distribution: Does The World Have A Middle Class?," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 2(2), pages 88-110.
    10. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    11. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
    12. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    13. Ravallion, Martin, 2010. "The Developing World's Bulging (but Vulnerable) Middle Class," World Development, Elsevier, vol. 38(4), pages 445-454, April.
    14. Kapsos, Steven. & Bourmpoula, Evangelia., 2013. "Employment and economic class in the developing world," ILO Working Papers 994855123402676, International Labour Organization.
    15. Knack, Stephen & Xu, Lixin Colin & Zou, Ben, 2014. "Interactions among donors'aid allocations : evidence from an exogenous World Bank income threshold," Policy Research Working Paper Series 7039, The World Bank.
    16. Nancy Birdsall, 2010. "The (Indispensable) Middle Class in Developing Countries; or, The Rich and the Rest, Not the Poor and the Rest," Working Papers 207, Center for Global Development.
    17. Sabina Alkire & Jose Manuel Roche & Andy Sumner, 2013. "Where do the World's Multidimensionally Poor People Live?," OPHI Working Papers 61, Queen Elizabeth House, University of Oxford.
    18. Anthony B. Atkinson & Andrea Brandolini, 2010. "On Analyzing the World Distribution of Income," The World Bank Economic Review, World Bank, vol. 24(1), pages 1-37, January.
    19. Lynge Nielsen, 2011. "Classifications of Countries Basedon their Level of Development: How it is Done and How it Could Be Done," IMF Working Papers 2011/031, International Monetary Fund.
    20. Clare Leaver & Paul Segal, 2014. "The Global Distribution of Income," Economics Series Working Papers 714, University of Oxford, Department of Economics.
    21. Indermit Gill & Homi Kharas, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798.
    22. Francisco H.G. Ferreira & Julian Messina & Jamele Rigolini & Luis-Felipe López-Calva & Maria Ana Lugo & Renos Vakis, 2013. "Economic Mobility and the Rise of the Latin American Middle Class [La movilidad económica y el crecimiento de la clase media en América Latina]," World Bank Publications - Books, The World Bank Group, number 11858.
    23. Sergio Tezanos V�zquez & Andy Sumner, 2013. "Revisiting the Meaning of Development: A Multidimensional Taxonomy of Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1728-1745, December.
    24. repec:ilo:ilowps:485512 is not listed on IDEAS
    25. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    26. repec:bla:revinw:v:48:y:2002:i:2:p:155-78 is not listed on IDEAS
    27. Palma, J.G., 2011. "Homogeneous middles vs. heterogeneous tails, and the end of the ‘Inverted-U’: the share of the rich is what it's all about," Cambridge Working Papers in Economics 1111, Faculty of Economics, University of Cambridge.
    28. Joseph E. Stiglitz & Amartya Sen & Jean-Paul Fitoussi, 2009. "The measurement of economic performance and social progress revisited," Documents de Travail de l'OFCE 2009-33, Observatoire Francais des Conjonctures Economiques (OFCE).
    29. Homi Kharas, 2010. "The Emerging Middle Class in Developing Countries," OECD Development Centre Working Papers 285, OECD Publishing.
    30. Brandi, Clara & Büge, Max, 2014. "A cartography of the new middle classes in developing and emerging countries," IDOS Discussion Papers 35/2014, German Institute of Development and Sustainability (IDOS).
    31. Speich, Daniel, 2008. "Travelling with the GDP through early development economics’ history," Economic History Working Papers 22501, London School of Economics and Political Science, Department of Economic History.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arjun Jayadev & Rahul Lahoti & Sanjay Reddy, 2015. "The Middle Muddle: Conceptualizing and Measuring the Global Middle Class," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 193, Courant Research Centre PEG.
    2. Mariam Shahzadi & Muhammad Faraz Riaz & Sofia Anwar & Samia Nasreen, 2017. "How unequal is the size of middle class in the rural urban areas of Punjab province," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(2), pages 253-266, February.
    3. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class” Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers 309, Center for Global Development.
    4. Reham Rizk & Ricardo Nogales, 2017. "Revisiting the Middle-Class Myth: Evidence From A Cross-Country Analysis of African Social Progress," Working Papers 1139, Economic Research Forum, revised 09 2003.
    5. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class†Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers id:5169, eSocialSciences.
    6. Kapsos, Steven. & Bourmpoula, Evangelia., 2013. "Employment and economic class in the developing world," ILO Working Papers 994855123402676, International Labour Organization.
    7. Ozturk, Ayse, 2016. "Examining the economic growth and the middle-income trap from the perspective of the middle class," International Business Review, Elsevier, vol. 25(3), pages 726-738.
    8. Oasis Kodila-Tedika & Simplice A. Asongu & Julio Mukendi Kayembe, 2016. "Middle Class in Africa: Determinants and Consequences," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 527-549, October.
    9. Berrou, Jean-Philippe & Clément, Matthieu & Combarnous, François & Darbon, Dominique & Fauré, Yves-André, 2020. "Anatomy of the Brazilian middle class: identification, behaviours and expectations," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(1), pages 71-103, February.
    11. Huynh, Phu. & Kapsos, Steven., 2013. "Economic class and labour market inclusion poor and middle class workers in developing Asia and the Pacific," ILO Working Papers 994822963402676, International Labour Organization.
    12. repec:ilo:ilowps:485512 is not listed on IDEAS
    13. Joaquín Prieto, 2024. "Degrees of vulnerability to poverty: A low-income dynamics approach for Chile," Working Papers 666, ECINEQ, Society for the Study of Economic Inequality.
    14. Vyacheslav Bobkov & Peter Herrmann & Igor Kolmakov & Yelena Odintsova, 2018. "Two-Criterion Model of the Russian Society Stratification by Income and Housing Security," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1061-1075.
    15. Khalid Abu-Ismail & Niranjan Sarang, 2015. "Rethinking the measurement of the middle class: Evidence from Egypt," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
    16. Andy Sumner, 2016. "The world's two new middles Growth, precarity, structural change, and the limitations of the special case," WIDER Working Paper Series 034, World Institute for Development Economic Research (UNU-WIDER).
    17. repec:ilo:ilowps:482296 is not listed on IDEAS
    18. Diego F. Grijalva, 2017. "The rise of the middle class in Ecuador during the oil boom," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(72), October.
    19. Jean-Philippe BERROU & Matthieu CLÉMENT & François COMBARNOUS & Dominique DARBON & Yves-André FAURE & Éric ROUGIER, 2019. "L’essor des classes moyennes dans les pays en développement et émergents : une étude comparative des enjeux d’identification, de caractérisation et de politiques publiques," Working Paper d25da1cf-d9d8-4336-9930-b, Agence française de développement.
    20. Tsiry ANDRIANAMPIARIVO, 2014. "Moderate Prosperity, an adaptation of the Middle Class concept to a Malagasy rural area: the case of Itasy," Cahiers du GREThA (2007-2019) 2014-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    21. Prieto Suarez, Joaquin, 2023. "Degrees of vulnerability to poverty: a low-income dynamics approach for Chile," LSE Research Online Documents on Economics 121993, London School of Economics and Political Science, LSE Library.
    22. Eric Rougier & Jean‐Philippe Berrou & Matthieu Clément & François Combarnous & Dominique Darbon, 2021. "Should we call it a (middle) class? A socio‐economic exploration of the Vietnamese middle‐income group," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(8), pages 1321-1345, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:29:y:2017:i:1:d:10.1057_ejdr.2015.61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.