On the measurement of relative, absolute and intermediate pro-middle class growth

Produced by: 
Society for the Study of Economic Inequality (ECINEQ)
Available from: 
September 2019
Paper author(s): 
Osnat Peled
Jacques Silber
Topic: 
Demographic Economics - Migration
Year: 
2019

In the 1950s and 1960s many development economists put forth the notion of “trickle-down” according to which the poor will ultimately profit from growth. As emphasized by Kakwani and Son (2018), one of the arguments of this view is that the rich are those who can generate economic activities and this will increase the probability for a poor to be employed. In the 1970s some development economists started to object to such an approach (e.g. Ahluwalia 1976a and 1976b) when they realized that poverty did not significantly decrease and that the income growth rate among the poor was quite smaller than that in the whole population. This explains also the development of an important literature on the concept of pro-poor growth (see, for example, Kakwani and Pernia, 2000; Kakwani and Son, 2000; Dollar and Kraay, 2002; Ravallion and Chen, 2003; Son, 2004; Kraay, 2006; Son and Kakwani, 2008; Foster and Szekely, 2008; Deutsch and Silber, 2011).

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