Latin America's Emerging Middle Classes : Economic Perspectives

Politicians, business leaders and citizens look with hope to the Latin American middle class for political stability and purchasing power, but the economic position of the middle class remains vulnerable. The contributors document the remarkable emergence of this middle group in Latin America, whose measurement turns out not to be an easy task. What does it mean to be middle-class in Latin America? How is the middle class changing? What are the implications for economic development? Many look to the emergence of a middle class as a sign of Latin America's success in reducing poverty and inequality, a claim this book confirms. Political and business leaders hope that a booming middle class will drive economic growth and support progressive but not revolutionary political platforms, lending economic and democratic stability to countries long wracked by volatility. The contributors document the remarkable emergence of this middle group in Latin America (whose measurement turns out not to be an easy task). However, the authors consider it premature to declare middle-class Latin Americans ready to serve as a motor for economic growth or guarantors of democratic consolidation. Smart policies can nevertheless protect middle classes from poverty and allow them to fulfil the hopes invested in them Cover 1 Series 2 Series 3 Series 4 Title 5 Copyright 6 Contents 7 List of Tables and Figures 8 Tables 8 Figures 9 Preface 11 References 13 Notes on Contributors 13 List of Acronyms and Abbreviations 13 1 Making Sense of Latin America’s Middle Classes 23 What three recent narratives about Latin America tell us about the middle class 24 Just who is the Latin American middle class? 28 Revisiting Narratives about the Latin American Middle Class: What the studies in this volume tell us 39 Notes 47 References 50 2 Inequality, Mobility and Middle Classes in Latin America 54 Introduction 54 Income Inequality: Trends and Determinants 55 What does the decline of inequality mean for middle classes in Latin America? 59 Growth, Inequality and Directional Mobility 65 Concluding Remarks 68 Notes 69 References 70 3 Latin America’s Global Middle Class: A Preference for Growth over Equality 73 Definitions 74 Simulations: the effects of economic growth 75 Simulations: The Effects of Income Redistribution 77 Latin America and Asia in the Global Middle Class 2005–30 80 The Global Middle Class in Peru is not so Progressive: Attitudes and Values 81 Policy Discussion and Conclusions 87 Notes 90 References 91 4 Brazil’s New Middle Classes: The Bright Side of the Poor1 92 Conceptualizing the Middle Class 92 Economic Classes: Past Performance and Forecasts 100 Sustainability of Living Conditions of the middle class 107 Middle-Class Perceptions 109 Conclusions 112 Appendix 115 Notes 120 References 121 5 Who Is the Latin American Middle Class? Relative-Income and Multidimensional Approaches 123 The Importance and Measurement of the Middle Class 124 The Evolution of the Middle Class in Latin America, 2000–11 127 Who is Middle Class in Latin America and What Do They Think? 130 Determinants of belonging to an income class 133 The Multidimensional Middle Class, as Illustrated by the Case of Colombia 135 Conclusion 144 Appendix 145 Notes 148 References 150 6 Covering the Uncovered: Labor Informality, Pensions and the Emerging Middle Class in Latin America 152 Formality and Informality Among Latin American Middle Classes 155 Pension Coverage Among the Middle Classes 160 Policy Options: Social Pensions and Matching Contributions? 162 Conclusions 167 Notes 168 References 170 7 Business Sector Responses to the Rise of the Middle Class 172 The Emergence of a New Middle Class in Latin America 172 The Growth of Emerging Multinationals 174 Industries Most Favored by the New Middle Class in Latin America 176 Future Opportunities and Risks 188 Notes 191 References 191 8 Feeling Middle Class and Being Middle Class: What Do Subjective Perceptions Tell Us? 195 Defining the Subjective Middle Class in Latin America 196 What Influences the Perceived Social Position of Latin Americans? 200 What Makes People Think They Are Middle Class (When They Are Not)? 203 Conclusions 205 Notes 206 References 207 9 Political Attitudes of the Middle Class: The Case of Fiscal Policy 208 The Median-Voter Model and Beyond 210 Empirical Evidence for Latin America 213 Index 226 "Cover" -- "Series" -- "Series" -- "Series" -- "Title" -- "Copyright" -- "Contents" -- "List of Tables and Figures" -- "Tables" -- "Figures" -- "Preface" -- "References" -- "Notes on Contributors" -- "List of Acronyms and Abbreviations" -- "1 Making Sense of Latin Americaâ#x80;#x99;s Middle Classes" -- "What three recent narratives about Latin America tell us about the middle class" -- "Just who is the Latin American middle class?" -- "Revisiting Narratives about the Latin American Middle Class: What the studies in this volume tell us" -- "Notes" -- "References" -- "2 Inequality, Mobility and Middle Classes in Latin America" -- "Introduction" -- "Income Inequality: Trends and Determinants" -- "What does the decline of inequality mean for middle classes in Latin America?" -- "Growth, Inequality and Directional Mobility" -- "Concluding Remarks" -- "Notes" -- "References" -- "3 Latin Americaâ#x80;#x99;s Global Middle Class: A Preference for Growth over Equality" -- "Definitions" -- "Simulations: the effects of economic growth" -- "Simulations: The Effects of Income Redistribution" -- "Latin America and Asia in the Global Middle Class 2005â#x80;#x93;30" -- "The Global Middle Class in Peru is not so Progressive: Attitudes and Values" -- "Policy Discussion and Conclusions" -- "Notes" -- "References" -- "4 Brazilâ#x80;#x99;s New Middle Classes: The Bright Side of the Poor1" -- "Conceptualizing the Middle Class" -- "Economic Classes: Past Performance and Forecasts" -- "Sustainability of Living Conditions of the middle class" -- "Middle-Class Perceptions" -- "Conclusions" -- "Appendix" -- "Notes" -- "References" -- "5 Who Is the Latin American Middle Class? Relative-Income and Multidimensional Approaches" -- "The Importance and Measurement of the Middle Class" -- "The Evolution of the Middle Class in Latin America, 2000â#x80;#x93;11" Front Matter....Pages i-xxv Making Sense of Latin America’s Middle Classes....Pages 1-31 Inequality, Mobility and Middle Classes in Latin America....Pages 32-50 Latin America’s Global Middle Class: A Preference for Growth over Equality....Pages 51-69 Brazil’s New Middle Classes: The Bright Side of the Poor....Pages 70-100 Who Is the Latin American Middle Class? Relative-Income and Multidimensional Approaches....Pages 101-129 Covering the Uncovered: Labor Informality, Pensions and the Emerging Middle Class in Latin America....Pages 130-149 Business Sector Responses to the Rise of the Middle Class....Pages 150-172 Feeling Middle Class and Being Middle Class: What Do Subjective Perceptions Tell Us?....Pages 173-185 Political Attitudes of the Middle Class: The Case of Fiscal Policy....Pages 186-203 Back Matter....Pages 205-209