Stuck in Tunnel: Is Globalization Muddling the Middle?
Brookings Institution Center Working Paper No. 14
37 Pages Posted: 3 Aug 2001
Date Written: August 2000
Our objective in this paper is to assess how middle-income groups are faring with the global turn to the market. We suggest some simple measures of the middle--the size and income share of households around the median (75/125%)--and their income status relative to wealthier counterparts. Our results point to genuine distributional stress for middle-income households. They also suggest the need for new measures to capture distributional trends that are masked by aggregate measures. We posit that the fate of those in the middle merits new attention, as their political support and economic participation are critical to sustainable market-oriented growth, and poverty reduction in the long-term.
Keywords: middle income, income distribution, globalization
JEL Classification: A14, D31, D63
Suggested Citation: Suggested Citation