Negative Trajectory of the Middle Class: Mexico 2002-2012

Authors

  • Dante Contreras Universidad de Chile
  • Elvia Tapia Universidad de Chile

Abstract

This paper examines the negative trajectory of the middle class in Mexico. Using the longitudinal data extracted from the National Survey on Household Living Levels (ENNViH) of 2002 and 2012, new evidence was provided about the characteristics and determinants that a middle class household has to follow to have negative trajectory. The results indicate that the head of household demographic characteristics and if he works in the tertiary sector reduce the probability of a middle class household would fall into poverty. Evidence also shows that if we incorporate regional information like: household assets and occupational indicators, living in the western region, having no savings, total loss of crop and if the head of household does not have access to health services, increase the probability that a middle-class household would follow a negative trajectory.

Keywords:

Middle class, income distribution, poverty, vulnerability, data panel