Calculating the middle class income range of a country is indeed a very tedious task. However, at the same time, it is extremely essential as the growing middle class symbolizes prosperity and economic growth. The middle class income range in a country varies from one city to another. So, we should be aware of the factors which are considered to determine the middle class income range in a particular place. In the next few paragraphs, we shall discuss the factors which affect middle class income range.Factors Affecting Middle Class Income Range
A person living in a particular city is said to be in the 'middle class' bracket if his income fits into a range created by economists by studying the economic characteristics of the city. This implies that the middle class income range would be higher in the highly developed and advanced cities as compared to the lesser developed cities and rural areas. This is because the cost incurred on living and meeting basic needs is much higher in the developed cities than the underdeveloped ones. A person residing in a metropolitan city would have to spend a substantial amount of his income on home rents, transport, healthcare facilities, entertainment etc. For instance, the middle class income range would be higher in expensive cities like New York and Los Angles. Whether a person would fall in the middle class category also depends on the size of the family. We also consider the incomes of other people such as that of the poor, the rich and the very rich people before arriving at a figure for the middle class income range. Given below are some statistics related to the middle class income range.
Incomes of Middle Class People
The middle class income range is believed to be between USD 35,000 to USD 50,000 per year approximately as per the studies conducted by various institutions and economists. As per some other studies, the middle class income range could be between USD 22,000 to USD 65,000 per year. In some of the expensive cities, people earning up to USD 70,000 per year would also be included in the middle class bracket. More on gross domestic product.
The middle class is further divided into the upper middle class and the lower middle class. The upper middle class usually consists of people having substantial assets and household earnings which are more than USD 1,00,000 per year. The people in this class occupy considerably higher positions in their offices and are financially more stable than many people of their country. These are the people who see a considerable rise in their incomes due to the economic growth of the nation. They have higher disposable incomes than many of their fellow countrymen. The lower middle class consists of people who have basic educational qualifications and have an income between USD 30,000 to USD 60,000 per year. The lower middle class constitutes of a large part of the total population of a country. The lower middle class struggles to get to the level of the upper middle class, which in turn aims at entering the rich or elite class.
The middle class income range has seen a slow and steady rise in many countries of the world due to increased job opportunities. Asian countries like India and China have a middle class which is growing at a fast pace and adding to the growth of these countries. Hopefully, you are satisfied with the data on middle class income range in this article.
