The endangered middle class? A comparative analysis of the role played by income redistribution

2013 ◽  
Vol 23 (1) ◽  
pp. 83-101 ◽  
Author(s):  
Ursula Dallinger
Keyword(s):  
Middle Class ◽  
Income Redistribution ◽  
Income Group ◽  
Vulnerable Groups ◽  
Middle Income ◽  
Industrial Countries ◽  
Top Incomes ◽  
Income Groups ◽  
Income Position ◽  
Post Industrial

Contributing to the debate on the decline of the middle class, this article provides a comparative and longitudinal analysis of changes to the relative position of middle income groups in 19 (post)industrial countries between 1985 and 2005. How much did the income position of the middle worsen compared with more vulnerable groups? To what extent did public policies mitigate the market position of different income groups? The analysis is based on microdata of the Luxembourg Income Study. It divides the broad category of ‘middle class’ into three groups. Results suggest little change in the income position of the middle classes with respect to both market and disposable incomes. In most countries market incomes in the top quintile increased remarkably while the bottom quintile group lost out. The scale of government income redistribution has improved the position of the lowest income group, while burdening the highest income group. But it failed to fully compensate for the growing gap between the top and bottom income groups. The distance between the middle and the top incomes grew significantly, which might be one reason for the current public debate about an endangered middle class.

scholarly journals An Analysis of Environmental Efficiency and Environmental Pollution Treatment Efficiency in China’s Industrial Sector

2021 ◽  
Vol 13 (5) ◽  
pp. 2579 ◽  
Author(s):  
Xiao-Ning Li ◽  
Ying Feng ◽  
Pei-Ying Wu ◽  
Yung-Ho Chiu
Keyword(s):  
Environmental Pollution ◽  
Environmental Governance ◽  
Income Group ◽  
Industrial Sector ◽  
High Income ◽  
Environmental Efficiency ◽  
Technical Level ◽  
High Income Group ◽  
Middle Income ◽  
Income Groups

This research adopts the meta Dynamic Directional Distance Functions (DDF) model in order to calculate the environmental efficiency and environmental governance efficiency of China’s industrial sector from 2010 to 2017 from the overall, sub-regional, and sub-provincial perspectives and discusses the technical gaps in regional environmental pollution control and the reasons for ineffective environmental governance. The research results show that the overall level of environmental governance efficiency in China’s industrial sector is relatively high over this time period, and the group frontier calculation results have improved compared to the meta frontier. The actual technical level of the high-income group is closest to the potential technical level, and the upper-middle income group is still far from the potential technical level. The main reason for the ineffective environmental governance of the provinces in the high-income group is ineffective management, while the main reason for ineffective environmental governance of the provinces in the upper-middle-income groups is technical inefficiency. Regardless of high-income groups or upper-middle-income groups, each province’s inefficiency of environmental governance is caused by inefficiency of the input factors.

An Empirical Investigation of the income share of the middle class

2019 ◽  
pp. 50-65
Author(s):  
Francesco Farina ◽  
Chiara Assunta Ricci
Keyword(s):  
Middle Class ◽  
Income Distribution ◽  
Income Group ◽  
Reverse Causality ◽  
Middle Income ◽  
Income Share ◽  
Redistributive Policies ◽  
Directional Relation ◽  
Middle Income Group ◽  
Income Dispersion

The scientific evaluation of the relationship between growth, redistribution, and the income share of the middle class is still in its infancy. This article aims to investigate how the drivers of economic growth impinge on market income distribution and how the middle class has a role in deciding the level of redistribution. Our strategy is to dodge the reverse causality problem, stemming from the bi-directional relation between income distribution and growth, by exploiting the peculiar feature of different indicators of income dispersion focused on the middle income group. The findings reveal that market forces and redistributive policies are both pivotal in shaping the evolution of income dispersion and in particular the income share of the middle class, over the growth process. The ability of redistributive policies to counteract the ongoing increase in income inequality seems to depend not only on the political pressure exerted by an impoverishing median voter but also on the expansion of fiscal revenues after sustained Gross Domestic Product (GDP) growth.

scholarly journals Nonlinear Dynamics in the Finance-Inequality Nexus in China-CHNS Data

2019 ◽  
Vol 11 (1) ◽  
pp. 191 ◽  
Author(s):  
Mohammad Masudur Rahman ◽  
Guan Fuquan ◽  
Laila Arjuman Ara
Keyword(s):  
Financial Development ◽  
Low Income ◽  
Income Group ◽  
High Income Group ◽  
Middle Income ◽  
Linear Effect ◽  
Quantile Regression Model ◽  
Income Groups ◽  
Using Data ◽  
The Impact

This paper empirically investigates the effects of financial development on incomes of Chinese residents particularly within various income groups using data from six provinces by applying the Quantile Regression model. The Greenwood and Jovanovich hypothesis that illustrates the inverted U shaped relationship between financial development and income inequality is tested. This empirical study demonstrates that financial development has a positive but non-linear effect on the annual income of individuals from various income groups at different quantiles. The effect is an inverted U or Kuznets effect indicating an increase at first and then a drop. As for the distribution of the impact on various income groups, the low-income group is under the most dominant influence followed by the high-income group with the middle-income groups receiving relatively smaller influence. Findings indicate that promoting balanced financial development would help to ease the income gap between Chinese residents.

scholarly journals Ukrainian Middle Class in the New Millennium: Trends and Prospects

2020 ◽  
pp. 71-92
Author(s):  
L. M. CHERENKO
Keyword(s):  
Middle Class ◽  
Income Distribution ◽  
Developed Countries ◽  
Income Group ◽  
Middle Income ◽  
Global Trends ◽  
The Past ◽  
General Decline ◽  
Middle Income Group ◽  
The Impact

Ukrainian society has undergone various transformations over the past twenty years. Adverse economic conditions and ineffi cient income distribution policies deterred the for mation of a large middle-income group, which should become the basis of the middle class. Developed countries, which in the last century reached the peak growth of the number and importance of the middle class, today indicate the process of “blurring” of this social group against the background of growing inequality. Against the background of global trends, Ukraine is facing a double blow — the income distribution, which is already shift ed towards low incomes, leaves no chance for positive changes in the social structure of society. Th e a im of the article is to establish trends in the formation of the middle-income group in Ukraine over a twenty-year period and assess the prospects for the formation of the middle class in the future, taking into account today’s Ukrainian realities and global trends. Th e novelty of the work is the analysis of a long series of dynamics to establish the trends of the middleincome group according to the classical approaches for international comparisons and according to the purely Ukrainian approach. In addition, micromodeling of incomes (expenditures) for 2020, taking into account the macroeconomic situation, allows us to assess the impact of the coronavirus crisis and quarantine measures on changes in the number of middle-income groups and the prospects of the middle class in Ukraine. Within the article classical methods of analysis of long series of data, in particular, the index method (basic and chain indices) are used for studying the dynamic changes in the formation of midd leincome groups. In order to assess the size of the middle-income group in 2020, the method of micromodeling is used: the 2020 microdata is modeled on the basis of the 2019 microdata (microfi le of the household living condition survey) and macro forecast data for the current year. Analysis of the dynamics of incomes, expenditures and various property character istics of the middle-income group over the past twenty years does not show positive trends. Quite the contrary, in Ukraine there is an impact of the global trend of “blurring” of the middle-income group as the basis of the middle class, with its specifi c features in consumer and investment behavior. Th e events of the last year also do not inspire optimism — by the end of the year the general decline in living standards and the growth of poverty is expected. In such conditions, the main burden of the crisis is expected to fall on the middle-income group. Th e article also considers the problem of the importance of forming the middle class for society and the feasibility of forming politics to this goal.

scholarly journals A Fragile Hold on Consumption: Consumption and the New Middle Class in Colombia

2019 ◽  
Vol 11 (3) ◽  
pp. 73
Author(s):  
Lina Martínez ◽  
John Rennie Short ◽  
Maria Isabel Zafra
Keyword(s):  
Middle Class ◽  
Population Survey ◽  
Basic Question ◽  
Lower Income ◽  
Middle Income ◽  
Banking Services ◽  
Income Groups ◽  
The Poor ◽  
New Middle Class ◽  
Poor Population

This paper explores consumption patterns, access to banking services, attitudes to government and aspirations of the growing and vulnerable middle class in the global South. Data comes from a population survey conducted in 2016 in Cali, Colombia. We compare middle income and lower income populations in order to establish differences and similarities. We aim to answer a basic question. What are the patterns of consumption for this new middle class and how does it compare with lower income groups? Generally speaking, we find that despite the marked differences in income levels the middle class and the poor population share similar goals and attitudes and inhabit the same urban realm.

A Study on Affordable Housing Issues Among Middle-Income Groups (M40) in Malaysia

2021 ◽  
Vol 8 ◽  
pp. 73-90
Author(s):  
Muhammad Azwan Sulaiman ◽  
Adilah Binti Yusof ◽  
Muhammad Nazim Alias ◽  
Mohamad Isa Abdullah
Keyword(s):  
Affordable Housing ◽  
Past Research ◽  
Income Group ◽  
Survey Questionnaire ◽  
Middle Income ◽  
Housing Systems ◽  
Income Groups ◽  
Study Results ◽  
Middle Income Group ◽  
Fundamental Needs

Owning a house is an essential part of a human’s fundamental needs. The establishment of affordable housing that is adequate in number and fulfills liveable home standards is the major challenge in housing issues. Previous studies have found that the current interventions are insufficient in allowing average Malaysians to buy a home. The affordable housing-related issues that arise in Malaysia are not about the number of affordable houses in the market; however, it is about the availability of these houses for the middle-income groups. This study aims to investigate the issues and challenges faced by the middle-income group in dealing with affordable housing issues. This study is based on data from a survey questionnaire adapted from a past research which was similar in terms of affordable housing issues among middle-income earners. The data were analyzed and evaluated to rank the issues and provide recommendations. The findings suggest the establishment of an affordable housing agency to track and process affordable housing applications and approvals. The study results also suggest revising and improving the current affordable housing systems to help the middle-income groups to eventually own their first home. It is anticipated that the study can unravel the problems with affordable housing in this country.

Does Lottery Advertising Exploit Disadvantaged and Vulnerable Markets?

2005 ◽  
Vol 15 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Mary O. Borg ◽  
Harriet A. Stranahan
Keyword(s):  
Low Income ◽  
Income Group ◽  
Lower Income ◽  
Middle Income ◽  
The Public ◽  
Income Groups ◽  
The Poor ◽  
Education Levels ◽  
Middle Income Group ◽  
Low Income Groups

Abstract:Is it unethical to advertise lotteries? Many citizens think that states should not be actively promoting and encouraging the public to spend hard-earned dollars on a bet that they are virtually guaranteed to lose. Perhaps more importantly, business ethicists are concerned that lottery advertising may be targeting the most vulnerable markets: households with the lowest income and education levels. If this were true, then it would increase the already disproportionately large burden of lottery taxes on the poor. Fortunately, our research finds no evidence to support the contention that advertising is responsible for high rates of lottery participation and expenditures by lower income groups or that low-income groups are more affected by advertising than high-income groups. On the contrary, awareness of lottery advertising seems to be associated with a higher probability to play Lotto only for the middle income group. This means that lottery advertising may actually reduce the regressivity of lottery taxes.

Current management of household hazardous waste (HHW) in the Asian region

2019 ◽  
Vol 34 (4) ◽  
pp. 415-426
Author(s):  
Agni Amurbatami Manggali ◽  
Dewi Susanna
Keyword(s):  
Hazardous Waste ◽  
Developed Countries ◽  
Income Group ◽  
Household Waste ◽  
Asian Countries ◽  
Sampling Frame ◽  
Middle Income ◽  
Income Groups ◽  
Middle Income Group ◽  
Household Hazardous Waste

Abstract Background This review intends to explore the household hazardous waste (HHW) generation rates, HHW management, and people’s awareness regarding HHW in Asian countries based on the economic levels using the available published articles. Methods This is a systematic review of the scientific literature based on several databases, namely Scopus, ProQuest, PubMed, Sage Journals, and Elsevier’s Science Direct from 2008 to 2018. Results HHW generation rates in various Asian cities do not seem to be influenced by the countries’ financial status, except for e-waste. The variety in HHW generation rates among Asian countries might be due to various reasons, which include differences in (1) sampling frame/locations; (2) sampling size; (3) study duration; (4) seasons; (5) study year; and (6) HHW definition/composition. Governmental intervention programs on HHW management have been implemented in some of the Asian countries, mostly in high and upper-middle income groups although misconducts are still found. There is a tendency for economically developed countries to ship their e-waste to less-developed countries, where the system relies heavily on the informal sectors where unsafe treatments are often discovered. Low level of awareness regarding HHW risks is mostly identified in the lower-middle income group. However, even though high and upper-middle income groups have a better awareness of HHW, many people do not entirely follow the recommended practices. Conclusion The lack of enforced regulation and proper treatment infrastructure may lead to HHW being mixed with general household waste, which is found in many Asian countries, despite their income levels. In addition, a good awareness of HHW does not guarantee proper handling of it.

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