In this paper, I analyze historical trends in the size and composition of the global middle class. To reduce arbitrariness in prior definitions, I propose a new definition of today’s middle class based on the two central income classes in the four-group simplified representation of the world distribution, thereby minimizing information loss (i.e., maximizing class inequality).

This paper examines the role of the asset test in the Spanish minimum income scheme (Ingreso Mínimo Vital, IMV) and its implications for targeting inefficiencies that reduce the impact of the scheme in reducing vulnerability. Using administrative data, we analyse how the current IMV asset threshold excludes households from eligibility and evaluate two alternative reform scenarios designed to preserve precautionary wealth while improving program targeting.