Using $2$20 (purchasing power parity) per capita daily income as the definition of middle class, majority of households in the Peoples Republic of China (PRC) have become middle class by 2007, which is especially impressive given that around 40% of households were still considered poor in 1991....

This paper investigates the channels through which the middle class may matter for consumption growth and development. Determinants of the size and the growth of the middle class are also examined. Using several different middle class measures and a panel of 72 developing countries spanning the...