Measuring the Middle Class in Africa – Income Versus Assets Approach

Abstract

Traditionally, economists measure middle class from the income perspective. Considering quality of data for many African countries, relying solely on income may, unfortunately, lead to an incorrect picture. This article compares and analyses the African middle class measured by income and by ownership of assets. Results indicate that middle class sizes differ significantly in some countries, while in others they are more or less the same. Regression analyses performed to investigate potential correlates of the African income and assets middle class sizes indicate that the African assets middle class size is positively associated with income per capita and negatively with assets inequality. To a lesser extent, it is positively affected by education and negatively by ethnic fractionalisation. The African income middle class size depends positively on income per capita and education, while negatively on income inequality.