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A Methodology for Updating International Middle-Class Lines for the Latin American andCaribbean Region

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  • Fernandez Romero,Jaime Estuardo
  • Olivieri,Sergio Daniel
  • Sanchez Castro,Diana Marcela

Abstract

The middle class in Latin America and the Caribbean has been a central focus of policy debates inthe region since the COVID-19 pandemic began. To identify and track vulnerable and middle-class populationsaccurately, it is necessary to update the upper and lower bounds for the middle class using 2017 purchasing powerparity exchange rates. This paper contributes with a two-step methodology for updating these thresholds. Themethod indicates that updating the $13 lower-bound line in 2011 purchasing power parity dollars to 2017 purchasingpower parity dollars results in a vulnerability line of $14. The study also finds an upper bound of $81 per person perday in 2017 purchasing power parity, compared with $70 in 2011 purchasing power parity. These thresholds are robust toa variety of assumptions and methodologies. The results of this study indicate that the proportion of the population inLatin 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.

Suggested Citation

  • Fernandez Romero,Jaime Estuardo & Olivieri,Sergio Daniel & Sanchez Castro,Diana Marcela, 2023. "A Methodology for Updating International Middle-Class Lines for the Latin American andCaribbean Region," Policy Research Working Paper Series 10447, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10447
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    References listed on IDEAS

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    1. World Bank, 2021. "The Gradual Rise and Rapid Decline of the Middle Class in Latin America and the Caribbean," World Bank Publications - Reports 35834, The World Bank Group.
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