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How might socioeconomic class status impact a person's health outcomes in the United States?
Jobless men wa bans aimed at middle-cla pandemic. Meanwhile, the number of poor is estimated to have been 131 million higher because of the recession. How we did this The drop-off in the global middle class was centered in South Asia and in East Asia and the Pacific, and it stalled the expansion seen in the years preceding the pandemic. South Asia, The COVID-19_pandemic is having a deep effect on the global economy. In January 2020, specifically India, along with Sub-Saharan Africa, accounted for most of the increase in as reports of the novel coronavirus were emerging, the World Bank forecasted that the poverty, reversing years of progress on this front. global economy would expand by 2.5% that year. In January 2021, with the pandemic still holding much of the world in its grip, the World Bank estimated that the global economy As defined in this report (and in previous Pew Research Center analyses), people who are contracted by 4.3% in 2020, a turnabout of 6.8 percentage points. middle income live on $10.01-$20 a day, which translates to an annual income of about $14,600 to $29,200 for a family of four. This is modest by the standards of advanced economies. In fact, it straddles the official poverty line in the United States - about The COVID-19 downturn curbed growth in the global middle class, increased $23,000 for a family of four in 2020 (expressed in 2011 prices). By global standards, the poverty sharply in 2020 poor live on $2 or less a day, or no more than $2,920 annually for a family of four. Estimated change in the number of people in each income tier due to the global recession in 2020, in The number of people in the global high-income tier (more than $50 daily) is estimated to millions have decreased by 62 million in 2020, erasing about half of the gain since 2011, with most High income -62 million of the change emanating from advanced economies. Meanwhile, the upper-middle income Upper-middle 36 population ($20.01-$50 daily) fell by 36 million, while the low-income population income ($2.01-$10 daily) is estimated to have increased by 21 million. Middle income -54 Low income Who is middle class (or middle income)? Poor +131 This report uses the terms "middle income" and "middle class" interchangeably, a common practice Notes: The poor live on $2 or less daily, low income on $2.01-$10, among economists who tend to define the middle class in terms of income or consumption. But being middle income on $10.01-$20. upper-middle income on $20.01- $50. and high income on more than $50: figures expressed in 2011 middle class can connote more than income, be it a college education, white-collar work, economic purchasing power parities in 2011 prices. The estimates show the security, owning a home, or having certain social and political values. Class could also simply be a difference in the number of people in an income tier based on pre- pandemic projections and post-pandemic estimates. The term matter of self-identification. The interplay among these many factors is examined in studies by Hout "post-pandemic" refers to the period since the onset of the pandemic in January 2020.It is assumed there is no change in the (2007) and Savage et al. (2013), among others. income distribution in a region from the benchmark year for the projection to 2020. Source: Pew Research Center analysis of data from the World Bank The population in each global region is divided into five groups: poor, low income, middle income, PovcalNet database. upper-middle income and high income. The poor live on $2 or less daily, low income on $2.01-$10, The Pandemic Stalls Growth in the Global Middle Class, Pushes Poverty Up Sharply" middle income on $10.01-$20, upper-middle income on $20.01-$50 and high income on more than PEW RESEARCH CENTER $50. All dollar figures are expressed in 2011 prices and purchasing power parity dollars, currency exchange rates adjusted for differences in the prices of goods and services across countries The economic downturn is likely to have diminished living standards around the world, The assignment to a group, or income tier, is based on a household's daily per capita income or pushing millions out of the global middle class and swelling the ranks of the poor. At the consumption, a simple way of controlling for differences in household size. In the source data, some same time, the path to a recovery is clouded with uncertainties. countries only report income data while others only report consumption data. The terms "income" and "consumption" are used interchangeably for the sake of convenience. A new Pew Research Center analysis finds that the global middle class encompassed 54 million fewer people in 2020 than the number projected prior to the onset of the A middle-income, or middle-class, threshold of $10 follows the practice of other researchers. A similar threshold has been used by the World Bank (2007, 2015), researchers at the Organization for Economic Cooperation and Development (Kharas, 2010), the development community (Birdsall, Lustigand Meyer, 2013) and others. There is evidence that the $10 threshold, which is about five times impact in plainer sight. The difference between these two measures is taken to represent higher than the World Bank's global poverty line, is associated with economic security and "insulates" the impact of the COVID-19 downturn on the standard of living of people globally. people from falling back into poverty. An earlier Pew Research Center report discusses the choice of income thresholds in greater detail. Prior to the emergence of COVID-19, some 1.38 billion people were expected to be counted The global middle-class standard is modest by the standards of advanced economies. In 2020, the in the global middle class in 2020. But the pandemic is estimated to have driven this official poverty line for a family of four in the U.S. stood at about $15.90 per person per day (in 2011 number down to 1.32 billion. The share of people in the middle class globally is estimated prices). Thus, many who are poor by the U.S. definition would meet the global middle-income standard to have been 17.1% in 2020, instead of potentially 17.8%. The erosion in the middle class or, conversely, many who are in the global middle class would be poor by U.S. standards might have been deeper if not for the fact that China - which is home to more than one- third of the global middle class - evaded an economic contraction, even though growth Globally, most are either poor or low there was slower than anticipated. income, and the pandemic likely drove the numbers higher in 2020 The number of global poor is estimated to have risen to 803 million in 2020, much greater Estimated number of people in each income tier in 2020, than the 672 million initially expected. The global poverty rate, which had been in steady before and after the global recession, in millions decline this century, is likely to have increased to 10.4%, nearly reverting to the rate in Post-pandemic estimate 2017, instead of sinking to a new low of 8.7%, as previously expected. Pre-pandemic projection 531 million The steep rise in global poverty is driven by the fact that many who were in the low-income High income 593 tier prior to the pandemic lived on the margin of poverty. In 2017, 877 million people lived Upper-middle 1,140 on $2 to $3 a day, according to World Bank estimates. Thus, large numbers were income 1,176 susceptible to falling back into poverty prior to the pandemic, especially in South Asia and Middle 1,324 Sub-Saharan Africa. income 1,378 3,956 At the other end of the economic spectrum, the global high-income population likely fell to Low income 3,936 531 million in 2020 from the 593 million originally expected. Consequently, the expected 803 share in the high-income tier is 6.8%, not 7.6%. A vast majority of the global high-income Poor 672 population lives in advanced economies, and this group of countries also experienced a sharp downturn in 2020. Ironically, this bolstered the global middle-income population as Notes: The poor live on $2 or less daily, low income on $2.01-$10. middle income on $10.01-$20, upper-middle income on $20.01- people in advanced economies slipped down the ladder from higher income tiers. $50, and high income on more than $50; figures expressed in 2011 purchasing power parities in 2011 prices. It is assumed there is no change in the income distribution in a region from the benchmark year for the projection to 2020. The term "post-pandemic" refers to the period since the onset of the pandemic in January 2020. Source: Pew Research Center analysis of data from the World Bank PovcalNet database. "The Pandemic Stalls Growth in the Global Middle Class, Pushes PEW RESEARCH CENTER These estimates are based on the Center's analysis of World Bank data on the distribution of people by either income or consumption levels in seven major global regions. The latest available estimates of income for each region, such as for 2018 for Europe and Central Asia and 2015 for the Middle East and North Africa, are extrapolated to 2020 using two sets of growth estimates: the forecasts issued by the World Bank in January 2020, prior to the pandemic, and the estimates issued in January 2021, with the pandemic's economicThe global middle class expanded rapidly from 2011 to in advanced economies is estimated to have increased by 16 million, in part due to the 2019, and poverty fell sharply drop-off in the high-income tier in those countries. Number of people in each income tier, in millions 2011 2019 Change South Asia is estimated to have experienced the largest decrease in the middle High income +117 class and the greatest increase in poverty due to the COVID-19 downturn in 2020 459 576 Estimated change in the number of people in each income tier due to the global recession in 2020, in millions Upper-middle income +297 $40 1,137 Poor Middle income High income Middle income +436 899 1,335 Low income +212 Advanced economiesStep by Step Solution
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