The rise of the global middle class and the high-net-worth elite

2018 ◽  
pp. 92-107
Author(s):  
Björn Gustafsson ◽  
Terry Sicular ◽  
Xiuna Yang

This chapter examines China’s middle class by using CHIP data for 2002, 2007, and 2013. “Middle class” is defined as having income high enough not to be regarded as poor but not so high as to be regarded as rich if living in a high-income country. Based on this definition, China’s middle class was extremely small in 2002; grew but was still less than 10 percent of the population in 2007; and by 2013 had expanded to one-fifth of China’s population, roughly 250 million people. Further analysis shows that China’s middle class is largely urban, lives in the East, and has other distinctive characteristics. Simulations reveal that past growth of China’s middle class was due to across-the-board, shared income growth rather than a redistribution of income. As of 2020 China’s middle class should double in size, constituting a majority of urban residents but still a small minority of rural residents.


Author(s):  
Fenaba R. Addo ◽  
William A. Darity

What does it mean to be working class in a society of extreme racial wealth inequality? Using data from the Survey of Consumer Finances, we investigate the wealth holdings of Black, Latinx, and white working-class households during the post–Great Recession (pre–COVID-19) period that spanned 2010 to 2019. We then explore the relationship between working-class and middle-class attainment using a wealth-based metric. We find that, in terms of their net worth, fewer Black working-class households benefitted from the economic recovery than white working-class households. Among white households, the working class saw the greatest increase in wealth in both absolute and relative terms. Working-class households were less likely to be middle class as defined by their wealth holdings, and Black and Latinx households were also less likely to be middle class. For Black households, racial identity is a stronger predictor of wealth attainment than occupational sector.


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