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.

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.

‘They Take Our Houses’: Benefit Competition and the Erosion of Support for Immigrants' Social Rights

2020 ◽  
pp. 1-21
Author(s):  
Gerda Hooijer
Keyword(s):  
Panel Data ◽  
Social Housing ◽  
Electoral Politics ◽  
Institutional Context ◽  
Social Rights ◽  
Lower Income ◽  
Middle Income ◽  
Individual Level ◽  
The Poor ◽  
The Rich

Abstract Does benefit competition affect voters' support for immigrants' social rights? While scholars in political economy expect that benefit competition lowers support among the poor, the evidence is limited. This seems to be largely due to the reliance on highly aggregated analyses and the neglect of the institutional context in which individuals form their preferences. This article argues that lower-income voters are more likely to reduce their support due to competition when benefit eligibility depends on income. Using individual-level panel data from the Netherlands and a novel way to measure benefit competition, the study shows that lower-middle-income voters become less supportive of immigrants' social rights when more social housing in their municipality is allocated to refugees. By contrast, competition does not reduce support among the rich or the very poor. The findings suggest that benefit competition can erode support for immigrants' social rights and influence electoral politics.

scholarly journals Through the pyramid: implications of interconnectedness in Africa

2019 ◽  
Vol 31 (3) ◽  
pp. 289-303 ◽  
Author(s):  
Kerry Chipp ◽  
Marcus Carter ◽  
Manoj Chiba
Keyword(s):  
Middle Class ◽  
Low Income ◽  
Middle Income ◽  
Content Type ◽  
The Poor ◽  
Insurance Cover ◽  
Value Propositions ◽  
Vicarious Consumption ◽  
Economic Ties ◽  
Low And Middle Income

Purpose Many markets are conceptualized as a stratified low- and middle-income “pyramid” of consumers. Emerging markets are sites of rapid consumer mobility, and thus the middle class there is connected to, and often supports, low-income relatives and employees. Therefore, this paper aims to establish that African income groups are not insular, but rather interrelated and have strong social ties reinforced with longstanding communal values, such as ubuntu. Design/methodology/approach Using a between-subjects experimental vignette design, the propensity of the middle class to cover low-income individuals on an insurance product was assessed. Findings Income strata are interrelated and can inform value propositions, which is demonstrated in this paper with insurance, where the middle class are willing to include others, depending on their social proximity, on their insurance cover. Research limitations/implications The context for this study was personal home insurance; hence, the generalisability of the results is circumscribed. Other more tangible forms of cover, such as medical, funeral or educational insurance, may engender far stronger effects. Practical implications Marketers tend to view low- and middle-income consumers as independent. A view of their interrelation will change the design of many products and services, such as a service catered to the poor but targeted at their support networks. An example of such a service is insurance, which is traditionally hard to sell to the poor. A less atomistic approach to income strata could have implications for vicarious consumption, as well as a reconsideration of the disposable income of both groups. Originality/value The pyramid is an interconnected network of social and economic ties.

scholarly journals Assessing Socio-Economic Impacts of Agricultural Subsidies: A Case Study from Bhutan

2019 ◽  
Vol 11 (12) ◽  
pp. 3266 ◽  
Author(s):  
Sonam Wangyel Wang ◽  
Belay Manjur ◽  
Jeong-Gyu Kim ◽  
Woo-Kyun Lee
Keyword(s):  
Economic Impacts ◽  
Income Poverty ◽  
Agricultural Policies ◽  
Structured Interviews ◽  
Agricultural Subsidies ◽  
Income Groups ◽  
The Poor ◽  
Poor Population ◽  
Subsidy Programs ◽  
Agricultural Subsidy

As an agrarian nation, Bhutan’s agricultural policies prioritize agricultural subsidies to boost agricultural production, rural incomes, improve food security, and reduce income poverty, especially among the rural poor. However, the effectiveness and efficiency of such policy interventions remains unknown. Based on semi-structured interviews with heads of households from six blocks representing two districts, expert consultation with agricultural policymakers and extension agents, we attempted to evaluate the socio-economic impacts of agricultural subsidy programs including co-payments. The study found that while over 90% of the households received at least one form of subsidy, except for agricultural machineries and piglets, the non-poor population has greater access to the subsidies compared to the poor. For instance, only 35% of the poor received seed and sapling subsidies compared to 52% seeds and 39% sapling subsidies received by the non-poor population. Furthermore, none of the poor received Jersey cow or biogas subsidies due to their inability to co-pay. Additionally, the agriculture machinery subsidy was found to be counterproductive to the lower income groups (<US$153.85) and beneficial to the higher income groups. However, 14.5% of the households who received a poultry subsidy experienced 3 times more income (at a mean income change of 634.31 US$) compared to those who did not, indicating that this subsidy has larger potential to improve income for the poor. To efficiently achieve the objectives of increasing rural income and reducing poverty, we recommend agricultural subsidy programs and projects be provided as a package to poor small holders, where inputs are given based on existing capacity, availability of technical support, and market accessibility.

Latin America's wealthiest untouched by redistribution

2018 ◽  
Keyword(s):  
Latin America ◽  
Middle Class ◽  
Income Tax ◽  
Tax System ◽  
Middle Income ◽  
Middle Classes ◽  
Content Type ◽  
Middle Income Countries ◽  
The Poor ◽  
The World

Subject Patterns of inequality. Significance Inequality across the world varies significantly, particularly among middle-income countries. Much of this variance is the result of differences in the income shares of the poor and rich since the middle class receives a similar level of income in most cases. Latin America occupies a peculiar position in these comparisons: it is the most unequal region in the world because the wealthy are able to control more income than anywhere else. Impacts Effective measures to tackle inequality would require politically difficult reforms of the income tax system. Pressures to redistribute resources to the poor will squeeze the middle classes in times of muted growth. Elite power will be particularly significant in countries such as Colombia and Brazil, if less so in Argentina and Uruguay.

scholarly journals Troika of Trade Openness, Poverty and Income Inequality: Empirical Evidence from Lower and Middle Income Countries

2021 ◽  
Vol 7 (2) ◽  
pp. 243-256
Author(s):  
Rashid Sattar ◽  
Rana Ejaz Ali Khan
Keyword(s):  
Income Inequality ◽  
Developing Economies ◽  
Trade Openness ◽  
Policy Framework ◽  
Lower Income ◽  
Middle Income ◽  
Middle Income Countries ◽  
Income Groups ◽  
Cointegration Tests ◽  
Lower Income Countries

The current study investigates the relationship among trade openness, poverty and income inequality in the developing economies classified as lower and middle income countries. Kao and Fisher cointegration tests are employed to see the long-run equilibrium relationship among the variables. Panel cointegration regression is employed to calculate the magnitude of variables through FMOLS and DOLS techniques. The results demonstrate that interaction of these three variables differ for income groups of countries, however, trade openness and poverty increase income inequality in both groups. Similarly, income inequality decreases trade openness in both lower income and middle income groups of the economies. Trade openness increases poverty in lower income countries only. Poverty increases income inequality in lower income countries but in middle income countries it decreases trade openness. In the control variables the financial development has shown encouraging effect on trade openness in lower and middle income countries. GDP growth has shown positive impact on income inequality in lower income countries but negative impact in middle income countries. As trade openness has discoursing effect so the economies should carefully deal with the implications through proper policy framework.

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.

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