Economic exchanges in a stratified society: End of the middle class? |
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| Institution: | 1. The Abdus Salam International Center for Theoretical Physics, Strada Costiera, 11 (34014) Trieste, Italy;2. Instituto de Física, UFRGS, Caixa Postal 15051, 91501-970, Porto Alegre, RS, Brazil;1. Departamento de Física, Facultad de Ciencias Físicas y Matemáticas, Universidad de Chile, Casilla 487-3, Santiago, Chile;2. Facultad de Ingeniería, Universidad de los Andes, Av. San Carlos de Apoquindo 2200, Santiago, Chile;3. Instituto de Cálculo, Facultad de Ciencias Exactas y Naturales, Universidad de Buenos Aires, Pabellón II-2do. Piso, 1428 Buenos Aires, Argentina;1. Demography Unit, Sociology Dept., Stockholm University and SCOHOST, Södertörns University, Sweden;2. Institute of Statistics and Demography, Warsaw School of Economics, Poland |
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| Abstract: | We study the effect of the social stratification on the wealth distribution on a system of interacting economic agents that are constrained to interact only within their own economic class. The economical mobility of the agents is related to its success in exchange transactions. Different wealth distributions are obtained as a function of the width of the economic class. We find a range of widths in which the society is divided in two classes separated by a deep gap that prevents further exchange between poor and rich agents. As a consequence, the middle wealth class is eliminated. The high values of the Gini indices obtained in these cases indicate a highly unequal society. On the other hand, lower and higher widths induce lower Gini indices and a fairer wealth distribution. |
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