Poverty, Vulnerability and the Middle Class in Latin America
Between 2000 and 2013, Latin America has considerably reduced poverty (from 46.3% to 29.7% of the population). In this paper, we use synthetic panels to show that, despite progress, the region remains characterized by substantial vulnerability that also affects the rising middle-class. More specifically, we find that 65% of those with daily income between $4 and 10, and 14% of those in the middle-class, experience poverty at least once over a ten-year period. Furthermore, chronic poverty remains widespread (representing 91% and 50% of extreme and moderate poverty respectively).