Abstract
How to define who exactly qualifies as middle class is a long-standing discussion, but has been given new impetus by recent contributions in behavioural economics and social psychology. This study investigates the plausibility of the claim that the middle class can be meaningfully defined as those with higher levels of mental well-being. To this purpose we explore the pathway from occupational class to locus of control, and further link this pathway to behaviour that is often associated with middle-class status. The article tests for interdependencies between these variables with data from 23 middle-income countries using the 2005 World Value Survey. We show by structural equation modelling that the data are at least consistent with a psychological well-being pathway. The analysis thus supports the idea that middle classes not only fare better because they have more stable financial means, but also because these socioeconomic circumstances allow them more mental resources.
Abstract
La définition de qui, exactement, fait partie de la classe moyenne est une discussion de longue date, mais qui a reçu un nouvel élan grâce aux contributions récentes de l’économie comportementale et la psychologie sociale. Cette étude examine la plausibilité de l’allégation selon laquelle la classe moyenne peut être définie comme ces personnes qui ont un niveau supérieur de bien-être mental. A cette fin, nous explorons le cheminement entre la classe professionnelle et le lieu de contrôle, et nous relions ce cheminement à un comportement qui est souvent associé avec le statut de classe moyenne. L’article cherche les interdépendances entre ces variables et les données provenant de 23 pays à revenu intermédiaire en utilisant le World Value Survey de 2005. Nous montrons par modélisation à équation structurelle que les données sont au moins compatibles avec un cheminement de bien-être psychologique. L’analyse soutient donc l’idée que les classes moyennes s’en tirent mieux non seulement parce qu’elles ont une situation financière plus stable, mais aussi parce que ces circonstances socio-économiques leur apportent davantage de ressources mentales.
Similar content being viewed by others
References
Alkire, S.R., Santos, J.M.M.E. and Seth, S. (2012) Multidimensional poverty index. Oxford poverty and human development initiative, http://www.ophi.org.uk, accessed 16 June 2013.
Asian Development Bank (2010) The rise of Asia’s middle class, in Asian Development Bank, Key indicators for Asia and the Pacific, http://www.iberglobal.com/Archivos/asia_middle_class_adb.pdf, accessed 10 June 2013.
Atkinson, A.B. and Brandolini, A. (2011) On the Identification of the ‘Middle Class’. ECINEQ Working Papers series no. 2011–217, September. Verona, Italy, http://www.ecineq.org/milano/WP/ECINEQ2011-217.pdf.
Banerjee, A.V. and Duflo, E. (2008) What is middle class about the middle classes around the world? Journal of Economic Perspectives 22(2): 3–28.
Banerjee, A.V. and Duflo, E. (2011) Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty. New York: Public Affairs.
Bernard, T., Dercon, S., Orkin, K. and Taffesse, A.S. (2014) The future in mind: Aspirations and forward-looking behaviour in rural Ethiopia. CSAE Working Paper WPS 2014/16. Oxford, http://www.csae.ox.ac.uk/workingpapers/pdfs/csae-wps-2014-16.pdf.
Birdsall, N. (2010) The (indispensable) middle class in developing countries: Or, the rich and the rest, not the poor and the rest. Centre for Global Development Working Papers no. 207, March. Washington, http://www.cgdev.org/publication/indispensable-middle-class-developing-countries-or-rich-and-rest-not-poor-and-rest.
Bourdieu, P. (1984) Distinction: A Social Critique of the Judgement of Taste. Cambridge, MA: Harvard University Press.
Bucci, A. and Segre, G. (2011) Culture and human capital in a two-sector endogenous growth model. Research in Economics 65(4): 279–293.
Calvo, C. (2008) Vulnerability to multidimensional poverty: Peru, 1998–2002. World Development 36(3): 1011–1020.
Chun, N., Hasan, R. and Ulubasoglu, M. (2011) The role of the middle class in economic development: What do cross-country data show? ADB Economics Working Paper Series no. 245, January, http://www.adb.org/publications/role-middle-class-economic-development-what-do-cross-country-data-show.
Clark, A.E. and Oswald, A.J. (1996) Satisfaction and comparison income. Journal of Public Economics 61(3): 359–381.
Corral, P., Molini, P. and Oseni, G. (2015) No Condition is Permanent: Middle Class in Nigeria in the Last Decade. World Bank Policy Research Working Paper no. 7214, March, Washington DC.
De Jong, E. (2009) Culture and Economics: On Values, Economics and International Business. Oxon, UK: Routledge.
Easterly, W. (2001) The middle class consensus and economic development. Journal of Economic Growth 6(4): 317–336.
Enders, C.K. (2001) The impact of nonnormality on full information maximum-likelihood estimation for structural equation models with missing data. Psychological Methods 6(4): 352–370.
Fernald, L.C.H. and Gunnar, M.R. (2009) Poverty-alleviation program participation and salivary cortisol in very low-income children. Social Science & Medicine 68(12): 2180–2189.
Ferreira, F.H.G., Messina, J., Rigolini, J., López-Calva, L.F., Lugo, M.A. and Vakis, R. (2013) Economic mobility and the rise of the Latin American middle class. Washington: International Bank for Reconstruction and Development, http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/EXTLACOFFICEOFCE/0,,contentMDK:23311344~pagePK:64168445~piPK:64168309~theSitePK:870893,00.html.
Flechtner, S. (2015) Exploring the link between economic development, inequality and locus of control.Flensburg: European University (mimeo) (18 March).
Ganzeboom, H.B.G., De Graaf, P., Treiman, D.J. and De Leeuw, J. (1992) A standard international socio-economic index of occupational status. Social Science Research 21(1): 1–56.
Ganzeboom, H.B.G. and Treiman, D.J. (2003) Three internationally standardised measures for comparative research on occupational status. In: J.H.P. Hoffmeyer-Zlotnik and C. Wolf (eds.) Advances in Cross-National Comparison: A European Working Book for Demographic and Socio-Economic Variables. New York: Kluwer Academic Press, pp. 159–193.
Hauser, R.M. and Warren, J.R. (1997) Socioeconomic indexes for occupations: A review, update, and critique. Sociological Methodology 27(2): 177–298.
Haushofer, J. and Fehr, E. (2014) On the psychology of poverty. Science 344(6186): 862–867.
Haushofer, J. and Shapiro, J. (2013) Household response to income changes: Evidence from an unconditional cash transfer program in Kenya. Massachusetts Institute of Technology Working Paper. Cambridge, MA. http://ipc.umich.edu/pdf/haushofer-shapiro-2014-03-27.pdf.
Hoffmann, E. (2003) International statistical comparisons of occupational and social structures: Problems, possibilities and the role of ISCO-88. In: J.H.P. Hoffmeyer-Zlotnik and C. Wolf (eds.) Advances in Cross-National Comparison: A European Working Book for Demographic and Socio-Economic Variables. New York: Kluwer Academic Press, pp. 137–158.
Hu, L. and Bentler, P.M. (1999) Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal 6(1): 1–55.
Lever, J.P., Piñol, N.L. and Uralde, J.H. (2005) Poverty, psychological resources and subjective well-being. Social Indicators Research 73(3): 375–408.
Loayza, N., Rigolini, J. and Llorente, G. (2012) Do middle classes bring institutional reforms? Economic Letters 116(3): 440–444.
López-Calva, L.F. and Ortiz-Juárez, E. (2011) A Vulnerability Approach to the Definition of the Middle Class. World Bank Policy Research Working Paper no. 5902, December. Washington DC.
López-Calva, L.F., Rigolini, J. and Torche, F. (2011) Is There Such Thing as Middle Class Values? Class Differences, Values and Political Orientations in Latin America. World Bank Policy Research Working Paper no. 5874. Washington DC.
Mani, A., Mullainathan, S., Shafir, E. and Zhao, J. (2013) Poverty impedes cognitive function. Science 341(6149): 976–980.
Mullainathan, S. and Shafir, E. (2013) Scarcity: Why Having So Little Means So Much. New York: Times Books.
Ravallion, M. (2009) The Developing World’s Bulging but Vulnerable ‘Middle Class’. World Bank Policy Research Working Paper no. 4816. Washington DC.
Shah, A.K., Mullainathan, S. and Shafir, E. (2012) Some consequences of having to little. Science 338(6107): 682–685.
Silber, J. (2007) Measuring poverty: Taking a multidimensional perspective. FEDEA Working Papers, FEDEA. Madrid, http://documentos.fedea.net/pubs/dt/2007/dt-2007-14.pdf.
Stiglitz, J.E. (2012) The Price of Inequality: How Today’s Divided Society Endangers Our Future. New York: W. W. Norton and Company.
Thoits, P.A. (1995) Stress, coping, and social support processes: Where are we? What next? Journal of Health and Social Behavior 35(5): 53–79.
Throsby, D. (1999) Cultural capital. Journal of Cultural Economics 23(1–2): 3–12.
UNESCO (2006) ISCED 1997: International standard classification of education, http://www.uis.unesco.org/Library/Documents/isced97-en.pdf, accessed 5 August 2013.
Vandenberg, R.J. and Lance, C.E. (2000) A review of the measurement invariance literature: Suggestions, practices, and recommendations for organizational research. Organizational Research Methods 3(1): 4–70.
Vohs, K.D. (2013) The poor’s poor mental power. Science 341(6149): 969–970.
Wang, Y. (2012) The relationship between cultural capital and economic growth in China. Paper presented at the World Automation Congress (24–28 June), Puerto Vallarta, Mexico. http://ieeexplore.ieee.org/xpl/articleDetails.jsp?arnumber=6321694.
World Bank (2013) Data: Indicators, http://data.worldbank.org/indicator, accessed 27 June 2013.
World Bank (2015) World Development Report 2015: Mind, Society and Behavior. Washington DC: The World Bank.
World Values Survey Association (2009) 1981–2008 OFFICIAL AGGREGATE v.20090901, aggregate file producer: ASEP/JDS, Madrid. World Values Survey Association, www.worldvaluessurvey.org, accessed 29 January 2013.
Young, M.Y. (2001) Moderators of stress in Salvadoran refugees: The role of social and personal resources. International Migration Review 35(3): 840–869.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Mourits, R., Van Kempen, L. How Do the Middle Class and the Poor Grow Apart? An Empirical Test of the Psychological Well-Being Pathway in Middle-Income Countries. Eur J Dev Res 28, 893–915 (2016). https://doi.org/10.1057/ejdr.2015.59
Published:
Issue Date:
DOI: https://doi.org/10.1057/ejdr.2015.59