Tipping the scale : case study of the political engagement of BPO workers in Metro Cebu

CEBU CITY

MANDAUE CITY

LAPU-LAPU CITY

T

IPPING THE SCALE

C

ASE STUDY OF THE POLITICAL ENGAGEMENT OF

BPO

WORKERS IN

M

ETRO

C

EBU

MSc International Development Studies

Department of Geography, Planning and International Development Studies Graduate School of Social Sciences

14 January 2018

Tipping the scale

Case study of the political engagement of BPO workers in

Metro Cebu

Anna Zuidmeer

Supervisor

Faculty of Social and Behavioral Sciences

Second Reader

Dr. D.L. (Dennis) Arnold

Abstract

Economic growth and processes of globalization have created a new middle class in the global South. Traditionally, the middle class is viewed as an important group within society that through democratic involvement has the potential to reduce inequalities in society. Their demands for better governance have a positive impact on the middle- and lower class.

However, the democratic involvement of this new middle class is unclear, as most literature is concerned with ‘western’ middle classes, while most literature on the new middle class covers consumption patterns. This research aims to contribute to the empirical knowledge gap on the relation between the new middle class in the Philippines and their political

engagement. A mixed methods design has been used, resulting in 160 surveys, 2 focus groups and 13 semi-structured interviews. The data has been gathered among Business Process Outsourcing (BPO) workers in Metro Cebu, as this group is considered to be part of the new middle class. The surveys and interviews focus on the political engagement of these BPO workers, while also exploring if BPO workers are supporting the lower class outside of the political sphere.

The research data shows that many BPO workers have lost their faith in the political system as a whole, due to a political system hampered by corruption and family dynasties. The respondents expressed that the system never changes, and they didn’t feel they could make a difference. Almost none of the respondents were actively involved in politics, however, most of them did vote. The respondents were supportive of democracy, however, their distrust was aimed at the political system in the Philippines. This implies that either the political situation in the Philippines differs considerably from the political reality of the ‘western’ middle classes, or that the new middle class is still developing in size, internal cohesion and security in their middle class status. In the latter case, it is possible that these BPO workers will become politically engaged later in life. However, this study has found that BPO workers were often engaged in charity and giving donations, as well as financially supporting family members, thereby supporting the development of the lower class outside of the political sphere.

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LIST OF FIGURES, TABLES AND BOXES P.3

LIST OF ABBREVIATIONS P.5

CHAPTER 1 INTRODUCTION P.7

CHAPTER 2 THEORETICAL FRAMEWORK P.9

2.1DEFINING THE MIDDLE CLASS P.9

2.2THE MAKING OF THE NEW MIDDLE CLASS P.13

2.3CRITIQUE ON THE RELATIONSHIP BETWEEN THE MIDDLE CLASS

AND DEMOCRACY P.18 CHAPTER 3 METHODOLOGY P.21 3.1RESEARCH QUESTIONS P.21 3.2CONCEPTUAL SCHEME P.23 3.3EPISTEMOLOGY P.24 3.4RESEARCH DESIGN P.26 3.5DATA COLLECTION P.27 3.6SAMPLING P.29 3.7DATA ANALYSIS P.30

3.8REFLECTION OF RESEARCH QUALITY P.31

3.9ETHICS P.32

3.10SCOPE AND LIMITATIONS P.32

CHAPTER 4 LOCAL CONTEXT P.34

4.1RESEARCH LOCATION P.34

4.2DEFINING THE NEW MIDDLE CLASS IN THE PHILIPPINES P.36

4.3DEVELOPMENT OF THE FILIPINO NEW MIDDLE CLASS P.37

4.4INTRODUCING THE RESPONDENTS P.39

CHAPTER 5 DEMOCRACY IN THE PHILIPPINES P.43

5.1DEMOCRATIC POLITICAL CULTURE P.45

5.2 FUNCTIONING OF GOVERNMENT P.47

CHAPTER 6 DEMOCRACY BUILDING ACTIVITIES P.58

6.1PASSIVE DEMOCRACY BUILDING ACTIVITIES P.58

6.2ACTIVE DEMOCRACY BUILDING ACTIVITIES P.64

CHAPTER 7 SUPPORTING LOWER CLASS DEVELOPMENT P.68

7.1VOLUNTEERING P.68

7.2CHARITY P.70

7.3FINANCIALLY SUPPORTING FAMILY MEMBERS P.70

CHAPTER 8 CONCLUSION P.72

8.1RESEARCH FINDINGS P.72

8.2THEORETICAL REFLECTIONS P.74

8.3SUGGESTIONS FOR FURTHER RESEARCH P.75

BIBLIOGRAPHY P.77

APPENDICES P.82

3

List of figures, tables and boxes

F

FIGURE 2.1.1 DEFINING POVERTY P.11

FIGURE 2.2.1 WHO BENEFITS FROM GLOBALIZATION P.13

FIGURE 3.2 CONCEPTUAL SCHEME P.22

FIGURE 3.10A GENDER OF SURVEY RESPONDENTS P.31

FIGURE 3.10B GENDER OF INTERVIEW AND FOCUS GROUP RESPONDENTS P.32

FIGURE 4.1A LOCATION OF CEBU CITY P.33

FIGURE 4.1B RESEARCH LOCATIONS P.33

FIGURE 4.1.1 CONTRASTS IN THE NEIGHBOURHOOD P.34

FIGURE 4.4A LIVING PLACES OF RESPONDENTS P.39

FIGURE 4.4B BIRTHPLACE OF RESPONDENTS P.40

FIGURE 5 DEMOCRACY INDEX P.42

FIGURE 5.1A DEMOCRATIC SUPPORT P.44

FIGURE 5.1B DEMOCRATIC RULE AND ECONOMIC PROGRESS P.45

FIGURE 5.2.1A ELECTIONS P.47

FIGURE 5.2.1B CORRUPTION P.48

FIGURE 5.2.1C CORRUPTION INDEX 2016 P.49

FIGURE 5.2.1D VOTE BASED ON PARTY OR CANDIDATE P.49

FIGURE 5.2.2 GOVERNMENTAL PROVISION OF SOCIAL GOODS AND SERVICES P.50

FIGURE 6.1.1A POLITICAL INTEREST P.57

FIGURE 6.1.1B LEVEL OF POLITICS P.58

FIGURE 6.1.1C INCREASE IN POLITICAL INTEREST P.58

FIGURE 6.1.2 FOLLOWING POLITICS P.59

FIGURE 6.1.3 VOTING P.62

FIGURE 6.2 WILLINGNESS TO DEMONSTRATE P.64

FIGURE 7.1 COMMUNITY SUPPORT P.68

FIGURE 7.3A SUPPORT IN PERCENTAGE OF INCOME MEMBERS P.69

FIGURE 7.3B FINANCIALLY SUPPORTING FAMILY P.70

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TABLE 2.1.1 DIFFERENT DEFINITIONS OF POVERTY P.10

TABLE 5 PHILIPPINE’S SCORE ON DEMOCRACY INDEX P.43

B

BOX 1 MIDDLE CLASS INCOME P.35

5

List of abbreviations

BPO

BUSINESS PROCESS OUTSOURCING

CSR

C

S

R

OFW

O

F

W

7

C

HAPTER

1

Introduction

Globally, more and more people are escaping extreme poverty and move from the lower- to the middle class (Kochhar 2015, p. 14). Especially in developing countries the middle class is projected to keep expanding due to continued economic- and population growth. The World Bank even estimates that in 2030, 92% of the global middle class will be living in developing countries in (World Bank 2007, p. 73). These developments bring forward the question what the influence of a larger middle class means for

developing countries. First, the middle class is often characterized as a powerful consumer force. After the financial crisis in 2008, the American middle class started saving more of their income, instead of spending it on goods and services (Kharas 2010, p.2). Now, producers are turning the new Asian middle class as their largest consumer base (idem).

Secondly, the middle class is associated with consuming and living a comfortable lifestyle, the middle class is in the literature often referred to as a stabilizing group in society and the backbone of democracy (Urbanski 2009; Birdsall 2012; Easterly 2002; Loayza et al 2012; Birdsall 2016; Glassman 1997). While the elite often benefits from keeping the status quo, the middle class pursues long-term strategic goals and

pressures the government for good-quality governance (Birdsall 2010, p. 161). Good governance, in the form of investments in education, healthcare and infrastructure, are beneficial to both the middle class and the lower class. Therefore, it is theorized that through middle class involvement in politics lower class development is stimulated. Thus far, most literature approaches the new middle class in developing countries as a consumer force, while the middle class as democratic force is usually discussed in terms of western middle classes. Thus, a knowledge gap exists on the relationship between the new middle class and democracy. Literature that does discuss the relationship between the new middle class and democracy is often focused on the development of the new middle class in India (Fuller and Narasiamhan 2007; Krishna and Nederveen Pieterse 2008; Murphy 2011) or China (Chen and Lu 2011). Therefore, this thesis aims to contribute to the empirical knowledge on the role of the new middle class in reducing inequalities in societies of developing countries. Instead of India, this research focusses on the new middle class in the Philippines. In the Filipino context, the new middle class

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has been able to grow mainly due to foreign companies outsourcing of part of their production process. The country is known for its large offshore service sector, such as

call centers1_{. However, while globalization connects different parts of the world,}

globalization also leads to increasing inequalities between ‘winners’ and ‘losers’ of development. Thus, globalization connects and divides fragments of societies in new ways (Krishna and Nederveen Pieterse 2008, p. 232). This research focusses on the role of the new middle class in the Philippines in the context of changing societal relations due to processes of globalization. Thus, the societal relevance of this research project lies in the role that the new middle class could play in reducing inequalities within society, while the scientific relevance can be found in the aim to contribute to the knowledge gap on the new middle class and democracy. The potential role of the new middle class in reducing inequalities through political engagement is researched by zooming in on involvement in democracy building activities of call center workers in the business process outsourcing (BPO) industry in Metro Cebu.

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First, chapter 2 provides the theoretical framework on which this research has been structured. Then chapter 3 elaborates on the research process by discussing the processes of data collection and –analysis, as well as elaborating on the main- and sub-questions used in this research. Chapter 4 zooms in on the local context of Metro Cebu in which the research has been executed, as well as the development of the new middle class in the Philippines. The research respondents are also introduced in this chapter. Then, chapter 5, 6 and 7 put forward and analyze the research findings. Chapter 5 goes into the functioning of the democratic system in the Philippines. Chapter 6 presents the research findings of the extent to which BPO workers are involved in democracy

building activities. Then, chapter 7 analyzes how the BPO workers contribute to the development of the lower class outside of the political sphere. Finally, chapter 8 provides an answer to the main question, as well as recommendations for future research.

1 _{Even though this thesis follows the British English spelling and grammar, when referring to ‘Call}

Centers’ the American spelling is applied (instead of the British ‘Call Centre’), because in the Philippines the American ‘center’ is used.

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CHAPTER 2

_{Theoretical Framework}

I

This thesis aims to better understand role of the new middle class in democratic processes. Therefore, this chapter will provide an account of debates on this topic before moving on to the discussion of the research itself. This chapter also pays

attention to the perceptions of the middle class and typical middle class values. First, the middle class will be defined. Then, a discussion of the creation of the new middle class and their potential to reduce inequalities between income groups is provided.

2.1

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“The middle class has always been a category that defies definition”

(Fernandes and Heller 2006, p. 499)

Defining the boundaries of the middle class has proven to be an obstacle for many researchers. Put simply, the middle class is the class between the poor and the rich, often associated with being good citizens, well-educated, and rational (Ballard 2012, p. 5). However, in order to research the middle class, boundaries have to be created to determine who does, and does not belong to the middle class group. First, previous definitions of the middle class by various scholars will be discussed, before providing definition that will be used in this research.

2.1.1 DEFINING THE MIDDLE CLASS BY INCOME

Most scholars use income levels to define the middle class (Ballard 2012; Birdsall 2015; Ravallion 2009; Banerjee and Duflo 2008; Milanovic and Yitzhaki 2002; Birdsall et al 2000).The income level based on which people are identified as middle class usually derives from poverty lines. Some authors have argued that people above the 2 USD/day poverty line are part of the middle class (Ballard 2012; Birdsall 2015). Thus, everyone that is no longer considered to be poor is part of the middle class. Others have argued that that people just above the $2 poverty line are likely to fall back into poverty when faced with a financial setback, as they are not yet financially stable (Birdsall 2015; Ravallion 2009). Therefore, Birdsall (2015, p. 5) divides the middle class into the lower middle class, the ‘strugglers’, and the more stable higher middle class. The secure

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middle class earns more than $10 per day, while the people in the struggler group earn between $4 and $10 per day (Birdsall 2015, p. 2-3). Banerjee and Duflo (2008, p. 2) choose to compare the two ends of the middle class spectrum in their research, the ones earning between 2$ - 4$/day and those earning 6$ - 10$/day. Thereby they also divide the middle class in to a struggling and a more secure group. Contrastingly, Milanovic and Yitzhaki (2002, p. 172) have chosen to define the middle class as those earning

between the mean per capita income of Brazil and Italy.2

Ravallion (2009), on the other hand, has chosen to use the median poverty line of 70 developing countries as the lower bound of the middle class, at 2$/day. The higher bound is based on the 13$/day US poverty line, without creating different groups within the middle class group. Ravallion chooses the 13$/day US poverty line as he argues that the middle class in developing countries is still considered to be poor by developed countries’ standards. However, Ravallion also adopts a stricter definition later in his article, where the lower bound is set at the highest poverty line amongst developing

countries3_{, arguing that the middle class should not be considered to be poor in any}

developing country (2009, p. 446).

The above described definitions are based on absolute incomes, while others have chosen to use relative income measures to determine the middle class in a society (Birdsall, Graham and Pettinato 2000). They define the middle class within a society as those earning between 75% and 125% of the median income in any country (Birdsall, Graham and Pettinato 2000, p. 3). This definition allows the middle class to differ between countries, depending on their income distribution. However, in cases of extreme income inequalities, the median could be even below the poverty line, thereby including poor people into the middle class category. Finally, creating different middle class definitions per country makes it difficult to compare middle classes between countries.

2 _{Between $PPP 3470 and $PPP 8000 per year, in 1993} 3 _{At $9, the poverty line of Ecuador}

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What definition of the middle class is chosen greatly impacts the distribution of groups within society, as is visible in table 2.1.1.

TABLE 2.1.1DIFFERENT DEFINITIONS OF POVERTY

Region

Poor by US standards

living below 13$ a day

Poor by developing countries’ standards living below $2 a day

* 1990 2005 1990 2005

East Asia and Pacific 99.6 98.0 79.8 38.7

Eastern Europe and Central Asia

83.1 82.3 6.9 8.9

Latin America and Caribbean 85.1 82.9 21.9 17.1

Middle East and North Africa 95.2 95.5 19.7 16.9

South Asia 99.9 99.7 82.7 73.9

Sub-Saharan Africa 98.8 98.7 76.1 72.9 * In percentages of population RAVALLION 2009, P.448

Looking at table 2.1.1, according to US standards, the percentage of poor people living in East Asia and the Pacific has only decreased by 1.6 percentage points. However, when looking at developing countries’ standards, the difference is 41.1 percentage points. According to US standards almost the whole population of this area was poor in 2005, while according to developing countries’ own standards the percentage of poor roughly halved. This also presents a different notion of the growth of the middle class in this area. People classified as middle class in developing countries can still be categorized as poor by developed countries. Many people would be considered to be middle class on a national level, but not on a global level (World Bank 2007, p. 74). Thus, the definition of Western middle classes might not be relevant to the new middle class in developing countries (Ravallion 2009, p 445).

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Additionally, figure 2.1.1 shows that globally, the percentage of people living in poverty has gone down by 14 percent between 2001 and 2011. The low- and middle income groups have both grown by 6%. Thus, it is likely that the poor have joined either of

these groups.4

FIGURE 2.1.1DEFINING POVERTY

KOCHHAR 2015, P.14

Since the 1990s, the population in developing countries living above the poverty line has doubled (Wietzke and Sumner 2014, p. 2), however, whether these are categorized as new middle class or as lower class depends on the author’s definition of these categories.

2.1.2

D

Besides defining the middle class based on their income, some authors identify the middle class by their occupation. Kimura identifies the middle class in respect to prestige and occupation (2009, p. 265). Typical new middle class occupations are managers, administrators, salespeople and professionals who are educated white collar workers with technical knowledge (Rivera 2011, p. 2 ; Fuller and Narasimhan 2007, p. 122; Cortada 1998, p. 47). The ‘old’ middle class, on the other hand, can be defined as self-employed workers, such as famers and businessman (Kimura 2009, p. 70 ; Cortada 1998, p. 47). Whereas the old middle class would often own property, the new middle class seldom does (Fuller and Narasimhan 2007, p. 122). Fernandes and Heller (2006,

4 _{Kochhar defines ‘low income’ as earning between 2$ and 10$ per day. ‘Middle income’ is defined as earning}

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p. 500) identify the middle class as people that derive their income not from property, but from ‘power-conferring’ resources, such as a specific skill or being a management authority.

2.1.3

D

This research follows the argumentation of Ravallion when he argues that the poverty lines of developed countries are not necessarily applicable to developing countries (2009, p. 445). Applying the United States’ 13$/day poverty line would result in

labelling most of the population in developing countries as poor. Moreover, defining the middle class as 25% above and under the median income might be more appropriate for developed countries then for developing nations (Birdsall, Graham and Pettinato, p. 3). The latter has greater income inequalities, which are not visible when looking at the median income. Therefore, in this research, the definition of the middle class in the Philippines will be based on the international poverty line of $1.90 per day. Albert and Raymundo’s categorization of middle class incomes will be applied. They define three groups within the middle class: the lower middle class, earning between two and four times the poverty line, the middle class, earning between four and ten times the poverty line, and the upper middle class, earning ten to fifteen times the poverty line (Albert and Raymundo 2015, p. 30). How these calculations are translated in monthly incomes in the Philippines will be discussed in greater detail in section 4.2.

2.2

This section will discuss the creation of the new middle class and their role in society in developing countries. Then, an overview will be provided of the literature discussing the relationship between the middle class and democracy, as well as scholars’ critique this relationship.

2.2.1

E

The process of globalization has greatly impacted production processes by making it possible to spatially divide different stages of production (Gereffi 2014, p. 10). This

second unbundling5 _{in globalization has been made possible by the development of}

5 The first unbundling in globalization refers to the development of railroads and steamships that made

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information- and communication technologies (ibid.). These technological

developments impacted international trade, as well as economic growth of developing countries by in increasingly connecting them to the rest of the world. To reduce

production costs, parts of the production process are transferred to low-wage countries (Gereffi 2014, pp. 9-10), which stimulated the economy of these countries, as well as the profits made by the companies. Initially mostly manufacturing tasks were outsourced, however, since the 1990s more service oriented tasks have been relocated to

developing countries as well (Gereffi 2014, p. 10). This economic growth is creating a new middle class in developing countries, where the amount of people living above the

global poverty line6 _{has doubled in the last 25 years (Wietzke and Sumner 2014, p. 2).}

That same period, 1.5 billion people joined the global middle class (Ravallion 2009, p. 445). The developing countries’ share of the global middle class is expected to increase further.

FIGURE 1.2.1 WHO BENEFITS FROM GLOBALIZATION

MILANOVIC 2016, N.P.

As figure 2.2.1 shows, the Asian middle class and the world’s richest 1% have benefitted the most from globalization. The Asian middle class is experiencing enormous increases in income, while the poorest percentile has profited much less.

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While processes of globalization have created the new middle class, the middle class in turn stimulates economic growth by becoming an important consumer force that demands domestic goods and services (Kharas 2010, p. 7). Through the increasing demand, domestic industries are stimulated to produce more. The middle class tends to relatively consume more than the elite, as the latter usually saves a large share of their income, rather than spending it. In his research, Easterly (2001, p. 13) finds that the biggest growth rates occur when the middle class encompasses a large share of the population. A large middle class is also viewed as an indicator that growth is sustainable and being distributed throughout society, instead of being derived from the extraction of natural resources, international aid or remittances where mostly the elite will profit from (Birdsall 2010, p. 169).

Thus, even though globalization has boosted the economies of developing countries by connecting them to the international market, thereby decreasing the income differences between countries, the other side of the same coin is increasing inequalities within counties. These inequalities slow further economic growth (Easterly 2007, p. 2). This chapter will now turn to the role the middle class could play in decreasing these inequalities, which will benefit both the lower class as the economy as a whole.

2.2.2

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M

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Society can be viewed as a scale, on which the middle class can choose to side with either the lower class or the elite, thereby tipping the scale (Urbanski 2009, p. 73). According to Birdsall, the elite looks out for their own interests, and focusses on keeping the status quo, while the middle class strives for good governance over a longer period of time (2010, p. 161). Easterly argues that the elite is often reluctant to decease inequalities, as they fear that their position will be threatened once the lower class has more human capital and will become more politically active (Easterly 2007, p. 5). When public goods such as education become more widespread, the elite would be creating their own opposition, which it chooses not to (Easterly 2001, pp. 4-5). A larger share of

educated citizens poses a threat to the elite, as it could potentially overrule them.The

middle class, it is often argued, redistributes wealth throughout society, as they don’t strive to limit the human capital accumulation of the lower classes (Birdsall 2012; Easterly 2002; Loayza et al 2012). A growing middle class reshapes the structure of society from a pyramid to a diamond-shape (Lipset 1959, p. 83). This reshaping

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stimulates the elite to share their power, as the middle class can now function as a buffer between the poor masses and the elite (Wietzke and Sumner 2014, p. 6).

The economic- and political interests of the middle class are connected (Fernandes and Heller 2006, p. 499). Societies with a large middle class are more likely to choose policies that enhance growth, support political rights and civil liberties (Easterly 2001, pp. 17-19), to discourage practices of corruption and rent-seeking (Wietzke and Sumner 2014, p. 26; Fernandes and Heller 2006, p. 499) and to demand transparency and

environmental sustainability (World Bank 2007, p. 77). This is not to say that the middle class is purely altruistic. The middle class acts in its own interest, however, the interests of the middle class, such as good education, health care, infrastructure, stable inclusive institutions and protection of property rights, benefit the poor as well as the middle class (Birdsall 2010, p. 160). Loayza (et al 2012, p. 3) define three ways in which the middle class impacts policies and institutions: through social policy, market

economic structures and the quality of governance and democratic participation. In their research, they find that an increase in the middle class social policy on health and education becomes more active, there is less corruption and the quality of governance increases (Ibid.). Moreover, when the middle class becomes large enough it is willing and able to pay taxes that will provide the rest of society with collective goods and services (Birdsall 2015, pp. 2,5). As the stable middle class is able to take business risks, they press the government to provide a stable and predictable environment to make fair competition possible (Birdsall 2016, p. 2).

However, as mentioned before, within the middle class category different groups can be distinguished: the lower- and the higher middle class. The former has just escaped poverty and is mostly concerned with protecting their newly acquired wealth (Birdsall 2015, pp. 5-6 ; Birdsall 2010, p. 159). The higher middle class, on the other hand, is less concerned with falling back into poverty and is therefore more focussed on policies that affect the future rather than the present (Birdsall 2010, p. 159). According to Birdsall, the higher middle class is thus more likely to try and influence the government to invest in private goods and services than the lower class (2015, p. 5). Wietzke and Sumner (2014, p. 4), on the other hand, argue that the lower middle class group is more likely to demand the government to provide them with social protection policies, as they fear they will fall back into poverty. Thus, the the struggler group is more likely to respond

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to individual cases that threaten their material wellbeing, rather than addressing the political decision-making process (Birdsall 2015, p. 5). The theory that the middle class will decrease inequalities through political engagement thus largely depends on the higher middle class.

2.2.3

P

Three conditions are identified under which the middle class can be expected to strive for better governance. First, the middle class has to be big enough to make a difference in society (Birdsall 2015, p. 6). When the middle class share is small, the middle class is more likely to depend upon the government through employment or subsidies (Birdsall 2016, p. 2). Moreover, when the middle class encompasses only a small part of society, the members do not identify with each other as one group, and they are less likely to come together to pressure the government (idem.) Moreover, when the middle class is small they lack the bargaining power to demand policy changes from the government (Birdsall 2015, p. 6). According to Birdsall, the middle class share has to be 20-25 percent of the population to be big enough to achieve societal change. As a smaller middle class does not have the consumer power to address policy issues themselves, they might swing back and forth between aligning with the lower class or the elite depending on the issue (Easterly 2002, p. 9).

Secondly, not only the size of the middle class is important for people to identify

themselves as one group, a ‘middle class consensus’ is also preferred (Easterly 2001, p. 22). A middle class consensus exists when a society has no large ethnic or class

differences. Countries enjoying such a middle class consensus experience higher income and economic growth levels (Easterly 2001, p. 22). Krishna and Nederveen Pieterse (2008, p. 234) agree with Easterly, and find in their research that support for public investments in human capital increases in societies with less ethnic- and cultural diversity.

Thirdly, the middle class has to keep growing to redistribute the benefits of economic growth throughout society. Continuous economic growth is needed to preserve the middle class share. Birdsall (2015, pp. 7-10) fears that many developing countries will not continue to grow steadily for the coming decades. The optimism regarding the new

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middle class might be incorrect, as part of the middle class could potentially fall back into poverty, thereby not decreasing inequalities within society.

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The first critique on the relationship between the middle class and political engagement is the projection of the historical development of western middle classes countries onto developing countries in the Global South. There seems to be an assumption that

economic growth will automatically lead to democratization (Chen and Lu 2011, p. 706). However, this assumption might not be correct, as alternative development paths could be taken in developing countries. The idea of countries becoming more developed and following the linear growth path that developed countries have taken before fits into the modernization theory of Rostow’s Stages of Economic Growth. Rostow identifies five stages of growth that countries pass through before becoming a developed country with high consumption rates (1990, pp. 10-11). By opening up national economies to the international market, economic growth will increase, thereby lifting the population out of poverty and developing the nation. However, modernization theory has received a lot of criticism. Not only from the ‘Alternative Development’-scholars arguing that

wellbeing and poverty cannot be adequately expressed as a monetary value (e.g. Sen 1999). Scholars have also argued that the wealth generated by economic growth does not spread throughout society. “Globalization is creating rich countries with poor people” (Stiglitz 2007, p. 4). Thus, it is uncertain whether economic growth simultaneously leads to democratization.

Secondly, as Kharas (2017, p. 19) argues, the relationship between the new middle class and their government is very different from the relationship of that between the

government and the western middle class after the Industrial Revolution. Then, the government invested in education, housing, transportation and created pension- and healthcare funds to support the developing middle class (idem). However, in developing countries these efforts are not mirrored, and the new middle class could be said to be developing despite their governments, instead of being supported by them (idem). This has created a drastically different relationship between the new middle class and the

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government. The middle classes feel that they have created their own success by working hard, and not because of governmental support. Therefore, they are

unsupportive of tax increases that could provide them with more services (idem), which negatively impacts the access to services of the lower class.

The third strand of critique is centred around the argument that the development of the middle class does not simultaneously lead to the development of the lower classes. Ballard (2011, p. 7) argues that economic development is increasingly becoming a process of exclusion and segregation. While the middle class is developing, marginalized groups in society are increasingly displaced to keep them from interfering with the image of a well-developed state (Ballard 2011, pp. 1-2). Moreover, the wealthier within society are living, eating and working in places that are exclusively for the rich, such as gated communities and private schools (Ballard 2011, p. 6). In some cases, wealthy groups stop to identify themselves with a certain nation, but rather identify themselves as a cosmopolitan class, and no longer feel responsible for the wellbeing of others in society (idem).

Finally, there is no guarantee that once a society has a large middle class democratic values will be upheld, as Birdsall refers to Germany after the First World War (2016, p. 6). This is also visible in other countries, such as India, where large parts of the middle class are supporting Hindu nationalist policies (Fernandes and Heller 2006, p. 498). This nationalism is a response to the increasing power of the lower classes, which in India has triggered a populist response (Fernandes and Heller 2006, p. 505). More recently, political turmoil has caused a military coup in Thailand, while more than half of the country was considered to be middle class (Birdsall 2016, p. 27).

Adding to the critique, it can also be argued that turning away from trickle down politics and focussing on the redistributive role of the middle class is placing the responsibility of including the on the shoulders of the middle class, instead of the elite. Thereby, it is assumed that the elite will indirectly be affected through the pressure of the middle class on the government. However, one could also argue that it is the elite that is the most wealthy in society, and that it should be their responsibility to redistribute wealth throughout society.

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C

ONCLUSION

As processes of globalization have benefitted the new middle class in developing countries, the inequality within countries increased too. The focus has now turned to the new middle class as they might be able to reduce inequalities through political engagement and thereby support the development of the lower class. However, to be able to achieve that, the middle class has to be big enough and keep expanding to enable people to identify themselves as one middle class group. Moreover, it is unsure whether we can expect the same behavior and development path from the new middle class as from the middle class in developed countries. It might be soon to be discussing the political influence of the new middle class, as the growing middle class is only a recent development. How this class is engaged in supporting good governance in the

Philippines is relatively unexplored. Even though it may be too soon to discover middle class push for good governance, if this will in fact happen, this research aims to answer, or at least discuss, the question whether or not the new middle class is involved in democracy building activities. Thereby also paying attention to attitudes towards democracy, political interest and –participation. This will give a first idea of the role of the new middle class as the ‘backbone of democracy’ in developing countries.

Moreover, if BPO workers have just entered into the new middle class they might be occupied with preserving their middle class status, rather than being a politically active member of the stable middle class. First, however, attention will be payed to the

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C

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3

Methodology

I

This chapter discusses the methodology used to carry out this research. First, the main research question and sub-questions will be discussed in relation to the

operationalization and the conceptual scheme based on the theoretical framework. Then, the location in which the research has taken place will be elaborated on to contextualize the setting of the research, before moving on to the research- and data analyzation methods that have been used. Finally, the scope and limitations of the research will be addressed.

3.1 R

Q

To add to the knowledge gap on the relationship between the Filipino New Middle Class and their possible support of democracy, the following research question has been used to explore the political involvement of BPO workers in Cebu City:

How do New Middle Class BPO workers in Metro Cebu engage in democracy building activities?

1. In what passive democracy building activities are BPO workers in Metro Cebu engaged?

2. In what active democracy building activities are BPO workers in Metro Cebu engaged?

3. In what activities outside of the political sphere are BPO workers in Metro Cebu involved that contribute to the development of the lower class?

The democracy building activities mentioned in the main research question refer to the political participation of the new middle class. Political participation of citizens is considered to be one of the pillars of democracy. These activities can be divided into passive- and active democracy building activities, which are discussed respectively in sub question 1 and 2. The literature is indecisive whether or not we can expect the new middle class to be actively involved in politics, as the new middle class might be

22

Therefore, the first sub-question addresses their involvement in passive democracy building activities, such as voting, discussing politics with others, following politics through different media and political interest. The second sub-question then focusses on active participation, which includes activities as demonstrating, being a member of a

political party or political or civil organization, promoting politicians and being eligible7_.

While the first two sub-questions are based on the theoretical framework and

operationalization table, the third sub-question is based on the idea that there might be informal ways outside of the political sphere in which the new middle class can support the development of the lower class. The Filipino political system is known to suffer from widespread practices of corruption and vote-buying. This raised the hypothesis that Filipino’s might be reluctant to be politically involved, as they might have little trust in politics. Therefore, the last sub-question has been added to explore how the new middle class is involved in the development of the lower class, outside of the political sphere. BPO workers could be involved in, for instance, volunteering, charity or civil

organizations. The different ways in which the new middle class could be supporting the development of the lower class is visualized in the conceptual scheme on the next page.

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3.2 C

S

FIGURE 2.2CONCEPTUAL SCHEME

This conceptual scheme is based on the theoretical framework and shows how the new middle class could influence the development of the lower class. This positive influence can either be reached through political involvement or by directly supporting the lower class or family members. The upper-part of the conceptual scheme shows the political

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route, while the bottom is concerned with support outside of the political sphere. The latter category is divided into volunteering, charity, financial support family, church, NGO’s, and civil organizations. The ‘financial support of family members’ refers to the part of their income BPO workers send home to their families. Family in this context refers to other family members than BPO workers’ spouses or children, rather, it refers to other relatives, usually (grand)parents or (younger) siblings. This financial support can be used for different ends, such as paying bills, healthcare expenses, allowances or the education of family members. By providing financial assistance and supporting the education of family members the new middle class is able to contribute to the

development of the lower class, or to strengthen the middle class position of their families.

Looking at the political route on the top of the conceptual scheme, the lower class can also be supported as the new middle class becomes more involved in politics, thereby demanding better governance, which will positively impact the lower class, as discussed in the theoretical framework. Political involvement here is divided into passive- and active participation, reflecting the first- and second sub- question used in this research. Based on the theoretical framework, it is expected that when the NMC becomes

politically active and demands better government there will be less corruption and abuse of power, which will benefit both the middle and the lower class, as well as from investments in education, infrastructure and healthcare.

3.3

E

Epistemological and ontological principles form the basis of performing social research. The different positions one takes within these determine what kind of research will be carried out, which methods will be used, and subsequently how the gathered data can be analysed. Thus, before discussing the methods that have been used in this research, first the underlying epistemological and ontological considerations will be described. Epistemology is concerned with what can be considered to be knowledge. In this research an interpretivist approach has been applied, as this emphasizes the importance of understanding social phenomena, rather than only explaining them. Moreover, interpretivism acknowledges the difference between on the one hand objects

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used in natural science research, and on the other hand people, institutions and their interactions (Bryman 2012, p. 30). As the topic of this research is the involvement of New Middle Class BPO workers in democracy building activities, and how their attitudes and actions have potentially changed as they became part of the new middle class, the interpretivist approach is most appropriate to research these interactions within society.

Ontological principles refer to how social entities can be viewed (Bryman 2012, p. 32). On the one hand, objectivists argue that social phenomena can be considered to be facts that exists objectively (idem.). These facts can be observed and they exist separately from the observer. Thus, the same task, observation, or research could be done by different people, they would all be able to observe or measure the same facts. Constructionism, on the other hand, considers social phenomena to be constantly changed by social actors (Bryman 2012, p. 33). Constructionists argue that the world does not exist of fixed phenomena. Rather, social actors influence phenomena and these are therefore constantly changing. This also affects the role that the researcher plays in doing research. As a social actor, the researcher also influences what he/she is

researching. Thus, researchers always present their own perception of reality, rather than a fixed reality that exists separate from social actors.

One approach that combines both these views is critical realism. According to Bryman (2012, p. 616) “Social phenomena are produced by mechanisms that are real, but that are

not directly accessible to observation and are discernible only through their effects”. Thus,

on the one hand there is a reality that exists separate from our observations and interpretations, however, the social world is not directly observable, thus always interpreted and subjective (Bryman 2012, p. 616). Critical realists argue that

researchers have the task to formulate hypothesis about social phenomena that affect reality and assess their effects.

Critical realism is best compatible with the main research question, which is concerned with the relationship between people becoming part of a new class and their democratic involvement. I am focussing on the influence of social actors on society, which in the critical realist view can be considered to exist outside of my observations. When

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choosing critical realism as ontological position, both quantitative and qualitative research designs can be used.

3.4 R

D

3.4.1 MIXED METHODS DESIGN

This research has been based on a mixed methods design, in which qualitative- and quantitative data are gathered simultaneously to get a more complete understanding of the new middle class. In other words, the different kinds of data complement each other. Combining the qualitative- interview and quantitative survey data will provide a more thorough understanding as the different data can be used to explain unexpected results, explain findings and focus on different aspects of the same topic (Bryman 2012, p. 633). Specifically, a concurrent triangulation design has been used, in which the qualitative data is used to further understand and interpret the quantitative data (Bryman 2012, p. 635). The survey has been employed as it is a convenient way to reach a larger group of respondents. This information can be used to get an idea of the different views of BPO workers on democracy. Additionally, surveys can be used to generate statistical data to provide background information on the research sample. The semi-structured

interviews and focus groups, on the other hand, offer respondents the opportunity to give a more in-depth account of their political interest and engagement, thereby adding to the robustness of the quantitative data. In relation to the research questions,

especially the third sub-question ‘Are BPO workers in Metro Cebu contributing to the

development of the lower class outside the political sphere?’ is best explored through

qualitative interviews, as there may be ways in which BPO workers are supporting the lower class that the researcher is not aware of.

3.4.2

U

The unit of analysis that has been used in this research is BPO workers in Metro Cebu,

as they fall within the new middle class group based on their income8_{. Moreover, as}

these workers are fluent in English, the use of a translator was unnecessary. This is important especially for the semi-structured interviews, as information might be lost in translation which could influence the findings of the research. In total, 160 respondents

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filled out the survey while 15 BPO workers participated in interviews and 10 in two focus groups.

3.5 D

C

3.5.1 QUALITATIVE SEMI-STRUCTURED INTERVIEWS AND FOCUS GROUPS

To reach out to BPO workers that might be willing to be interviewed I started by looking for BPO networks on Facebook. I found two group pages for Call Center Agents in Cebu City where companies were posting job advertisements and BPO workers were

exchanging information. On both pages I placed a message, explaining about my research and asking people to respond if they were interested in doing an interview. Unfortunately, nobody responded. I then joined a yoga class located at the IT Park, where most of the call centers are located in Cebu City, hoping to get in touch with call center agents there. However, none of the participants in the class was working as a call center agent. Finally, I went back to the Facebook groups and looked at people that had either recently posted a message in one of these groups, or people who had recently liked someone’s message, and sent those people a private message. Eventually, fifteen call center agents agreed to be interviewed and eleven to participate in a focus group. Of the 47 call center agents I reached out to on Facebook only five agreed to do an

interview. Three interviewees were introduced to me through other respondents, five introduced by people I met in Cebu outside of the BPO industry and two respondents contacted me to do an interview after having completed the survey.

Before executing the research, I decided to do a snowball sample to reach interview respondents. However, in practice it proved harder than expected to find call center agents willing to do an interview. Because most call center companies are working for foreign accounts, call center agents usually work during the night and sleep during the day. This made it more complicated to find a time to meet with respondents. Moreover, the respondents expressed that their lives were incredibly busy and stressful. They usually spent five days a week working, having two days off. However, within these days they have to shift their sleeping schedule back to being awake during the day, which takes some time, leaving little time left they preferred to spend with their families or going out. Thus, they had limited time available for me to meet with them. Besides the

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busy schedule, respondents explained to me that some BPO workers might view me as a scam when I am reaching out to them on Facebook. To them it seemed unbelievable that someone from The Netherlands, a country many people never even heard of, would come to their city to talk with them about their lives. They advised me to take a picture of myself at the IT park and post it on Facebook, thereby proving to potential

respondents that I was not a scam.

Moreover, while living in Cebu City I experienced that Filipino’s are fascinated by white skin, which was noticeable from the large amount of whitening creams in every

supermarket, to advertisements, to people staring at me, while also being hesitant to approach me. One respondent admitted that he almost cancelled the interview at the last minute, because he felt incredibly nervous because he had never spoken to a white person before. I believe that this shyness might also have played a role in the low response rate for the interviews, in comparison to the surveys where no face-to-face contact was required.

For the focus groups, the first one was a regular interview appointment, however, the respondent had brought some of his colleagues. Therefore, I decided to do a focus group with all four colleagues. The second focus group was organized by a call center agent introduced to me by a man I met in Cebu City. This call center agent brought six of his colleagues and informed them beforehand of the topics I wanted to discuss with them. All the interviews and focus groups were held in public places in Metro Cebu, such as coffee bars, fast food chains, bars and lunchrooms.

3.5.2 Q

Before finalizing the survey, three exploratory interviews were held to get an idea of the knowledge gaps I had regarding the political system, political platforms and ways in which people were engaging themselves with politics. These three interviews with BPO workers were transcribed and analyzed in the field, in order to incorporate the results into the survey. Before handing out the survey to call center agents, the survey has been tested by three call center agents to ensure the questions were understandable and interpreted the same way by different respondents.

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To distribute the surveys I contacted eleven call center companies in Metro Cebu to ask if I could hand out the survey to their workers. Two executives responded, of which one agreed to distribute the survey amongst their call center agents. The executive

estimated that they had around 400 call center agents working at their company, of which eventually 140 completed the survey. Additionally, I handed out 50 surveys to interviewees to hand out to their colleagues, of which 20 were returned to me. This has the implication that most of the surveys have been completed by call center agents from the same company, even though they were working in different teams. How this affects the generalizability of this research will further be discussed in chapter 3.7 on sampling. The survey has been based on the operationalization table of democracy building

activities, which can be found in the appendix. The survey is made up of 53 questions divided into five themes: general information, income and expenses, safety, views on society, and political- and communal engagement. To answer the research question, the last two categories are most important. Views on society is measured by 18 Likert scales, mixing positive and negative phrasings to avoid respondents quickly ticking boxes without thinking about their answers. To measure political- and communal

engagement both open and closed questions have been employed.9

In total, 450 surveys were distributed among call center agents, of which 160 were completed and returned, which equals a response rate of 35,6%.

3.6

S

Initially, to try and get into contact with the respondents I used a snowball sampling method. However, no real snowball was taking shape as very few respondents

introduced me to their colleagues. This is a convenient method when it is difficult to get access to a group of people. In the case of the new middle class BPO workers in Cebu City this was difficult as the call centers themselves, except one, were not willing to cooperate. Therefore, I had to approach call centre workers outside of the office.

Unfortunately, there is no census data on the population of call center agents. In the case of BPO workers in the Philippines, the population is constantly changing as people are

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entering into the BPO business, while others find another occupation or move abroad. Thus, it is impossible to create a sample frame from which a random sample could be drawn. This has the implication that it is unsure whether the researched sample represents the actual population. Thus, no generalizations can be made with certainty that reflect a larger population than the snowball sample itself, resulting in a low external validity. However, as Small (2009, p. 24) argues, statistical significance is not an appropriate standard for all researches. Focus could also be turned to theoretical rather than literal replicability of studies (idem.). Even if the sample might not be representative of the total population, findings can still contribute to a better understanding of societal processes and relations. The research does not have to be generalizable to be relevant to other studies. Without being sure that the attitudes of these call center agents represent the attitudes of all call center agents in Cebu, these findings can be useful for future research projects, for instance, to compare if other groups within the new middle class share these attitudes towards democracy. Moreover, the survey sample could be affected by the fact that many of the survey respondents are working at the same company, therefore not giving an accurate

representation of call center workers in general. However, from the interviews I learned that it is common for call center workers to change companies every few months. Call center agents are constantly moving between different companies in Cebu. Therefore, the survey data might be minimally biased because of this, as these agents are likely to have worked at multiple other call centers in Cebu as well. Furthermore, using a Mann-Whitney test, the only statistically significant difference found in the background of these two groups was their age. The 140 respondents from the first company were aged between 20 and 50, with an average age of 28. The 20 respondents from different

companies were aged between 18 and 38, with an average age of 25. No significant differences were found in their gender, education level, their parent’s education level, birthplace, living situation, income or expenses.

3.7 D

A

The data gathered during the fieldwork has been analysed on different occasions. The first three semi-structured interviews were transcribed and analysed in the field to incorporate the results into the survey. Open and thematic coding has been used to

31

identify items from the interview list, as well as new topics that were brought up by respondents.

The survey data has been analysed using SPSS after returning from the fieldwork. All survey data has been entered into Excel twice, to make sure no mistakes were made during the data entry phase. The data has been modified to be used in SPSS. Then, descriptive- and frequency tables of the data have been created. The in-depth interviews and focus groups have been transcribed and analysed using Atlas.ti, once again using both open and thematic codes. Themes discussed in the interviews have been compared after the coding process to look for similarities and differences. Finally, the results from the qualitative- and quantitative data sources have been compared to see how they complement or contradict each other.

3.8

R

Because this research is based on a mixed-methods design, both qualitative- and qualitative measures of research quality are used to assess the quality of this research. To assess the quality of research ‘reliability’ and ‘validity’ are often employed (Bryman 2012, p. 168). Reliability refers to the consistency of the measurements, while validity is concerned with the correct measurements of a concept. For this research, a survey has been created based on the theoretical framework and operationalization tables. This survey has been printed 450 times and handed out to different call center agents and one BPO company. All respondents received the same survey during the same period, therefore the measurement of the survey data can be considered to be consistent. The internal reliability has been improved by testing the survey amongst three call center agents to make sure that the concepts used were not misinterpreted. After this test run, their feedback was incorporated into the final version of the survey. Moreover, as the research has been carried out by one researcher, no variations in observations or interpretations between different researchers have taken place. The validity of the survey has been taken into account by basing the survey questions on the

operationalization tables, which have been discussed with the research supervisor before going to the field. The survey (as provided in Appendix I) could be replicated by another researcher, thereby ensuring external reliability. Moreover, the links between the empirical data gathered by the researcher and the theoretical framework are

32

frequently made in chapters 5, 6 and 7, thereby strengthening the research validity. This is further strengthened by the triangulation of the quantitative- and qualitative data. As mentioned in section 3.6, the external validity of this research is low, as no

generalizations to a larger population can be made with certainty. However, the data gathered with this research can still be useful to other researchers looking into BPO workers or the new middle class, using theoretical- rather than statistical replicability (Small 2009, p. 24).

3.9 E

To ensure the privacy of participants I made sure that the surveys and interviews were all anonymous. Moreover, before starting I informed the respondents that the

information would not be used for other purposes than writing my thesis. I felt that in this context it was especially important to ensure confidentiality as respondents could feel reluctant to be critical of the president or express their dissatisfaction about other aspects of the political system. For this reason I also decided not to include in the surveys or interviews in which companies the call center agents were working, as it might be possible to identify them in that way. Before starting the interviews I asked permission to record the interview on my phone to be able to transcribe it later, to which everyone agreed.

3.10

S

L

One limitation of this research is that many potential respondents were not willing to do a semi-structured interview. It could be the case that only respondents with extrovert

personalities agreed to the interview, thereby the voices of the more introverted BPO workers might be underrepresented. Moreover, from the survey it becomes clear that the majority of call center agents in the survey is female (roughly 70-30%), while in the interviews the majority of the

71,3% 28,1%

Female Male

FIGURE 3.10A

33

respondents is male. This might be caused by the idea that I was a scam, and that females might be more cautious when meeting with a stranger than men were. Thus, the views of male BPO workers are more often expressed in the interviews than those of their female counterparts.

Another limitation of this research is that all the interviews and focus groups were held in public places. Some of the respondents stopped talking about politics when the waitress would pass by. Many respondents indicated that they usually only

discuss politics with family or good friends. They might have felt uncomfortable

discussing this in front of a waitress or people sitting at neighbouring tables. However, with their busy working schedule it was most convenient to do the interviews close to the BPO companies, and I did not feel safe inviting strangers into my own apartment. Furthermore, when dealing with a topic that is considered to be sensitive, it might be more fruitful to stick to individual interviews, instead of double interviews or focus groups. The most in-depth conversations I had were with individual respondents, who felt safe to talk to me about their critique on the political system in the Philippines. During the second focus group, respondents were reluctant to talk about this subject, possibly because they were accompanied by six of their colleagues. The first focus group resulted in an open conversation about politics, however, these four respondents were good friends who were already used to discuss politics with each other.

Finally, another limitation of this research is the limited time respondents were

available to do an interview. In many cases, the most in-depth part of the conversation took place after talking for a while about more general aspects of being a call center agent. However, as this sometimes took over an hour, some respondents had to leave shortly after getting into the political reality in the Philippines. Thus, information might be lost because of their busy schedule.

42%

58%

Female Male

FIGURE 3.10B

GENDER OF INTERVIEW AND FOCUS GROUP RESPONDENTS

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C

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4

Local Context

I

As technological innovations opened up possibilities to spatially divide production processes, many call centers have settled in the Philippines. This can be attributed to the relatively high education level, low wages and the English proficiency of Filipino’s as a former American colony (Friginal 2007, p. 331). First, American companies

outsourced their call centers to the Philippines in the 1990s (idem.). Today, amongst others, Japanese, Dutch, Australian and English companies have settled in the

Philippines as well. Before moving on to the discussion of the findings of this research, the context in which this research has been executed will be discussed in more detail.

4.1 Research Location

Most of the Filipino call centers are situated either in the capital, Manilla, or in Metro Cebu. The location in which this research has taken place is Metro Cebu, a large

agglomeration in the centre of the Philippine archipelago (see figure 4.1A). Metro Cebu is made up of three cities: Cebu City, Mandaue City and Lapu-Lapu City. The exact

locations where the research was conducted have been marked in figure 4.1B. However, the majority of the interviews and surveys has taken place at the IT park in Cebu City,

therefore, this location will be discussed in more detail than the other two locations.10

10 _{For a detailed list of the interview-locations please see Appendix III}

FIGURE 4.1ALOCATION OF CEBU CITY _{FIGURE 4.1BRESEARCH LOCATIONS}

GOOGLE MAPS 2017

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4.1.1 C

IT

P

The Cebu IT park is a business park located in the Northern part of the city (see figure 4.1B). Here, multiple call centres are grouped together in large buildings. New flats are still being built, making it a busy location with many workmen and call center agents. However, compared to the surrounding neighbourhoods, which is visible in figure 4.1.1, the IT park is a quiet and expensive place. With its large streets and luxury coffee bars, cafés and restaurants it is significantly more luxurious than the adjacent

neighbourhoods, exemplifying the increase in wealth of the call center workers. This is the location where most of the research has taken place. Similar contrasts between call center areas and their surrounding neighbourhoods can also be found in the Mactan Newtown area.

ZUIDM EER 2017, BASED ON OWN IM AGES AND GOOGLE MAPS

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4.2

D

N

M

C

P

In this research BPO workers are defined as part of the new middle class. As discussed in the theoretical framework, there is no consensus among scholars what a proper definition of the middle class is. Large differences in income exist between scholars’ definition of the middle class. In the Filipino context, Virola (et al 2007, p. 3) argue that it is easiest to identify the middle class by looking at their income and their occupation. They argue that a member of the middle class in the Philippines earns

between ₱ 6.4317 (€1.071) and ₱ 787,572 (€13.111)

annually. However, as call center agents often change jobs, it is more convenient to look at their monthly income. In this research, the middle class is defined by their income as described by Albert and Raymundo (2015, p. 7), based on the international poverty line. The lower middle class

earns 2-4 times the poverty line11_{, the middle class}

between 4 and 10- and the upper middle class between 10 and 15 times the poverty line. This results in a monthly

income of between ₱5.857 (€97) and ₱ 43.927 (€731), as is

visible in box 1. The majority of respondents earned

between ₱10.000 and ₱25.000 per month, and can

therefore be placed in the middle of the Filipino middle class.

Moreover, as Rivera (2011), Fuller and Narasimhan (2007) and Virola et al (2007) argue, occupation is another

suitable way to identify the new middle class. BPO workers, and especially call center workers, have in previous research been identified as being part of the new middle class (Upadhya 2007; Fuller and Narasimhan 2007). Moreover, in other research BPO

workers have identified themselves as belonging to the new middle class (Murphy

11 _{The international poverty line of $1.90 per day}

Box 1

Middle class income

Monthly income of the Middle Class in the

Philippines

Lower middle class ₱5.857 - ₱11.714

€97 - €195 Middle Class ₱11.714 - ₱29.285

€195 - € 487 Upper Middle Class

₱29.285 - ₱43.927 €487 - €731

Income BPO workers survey * # < 10.000 1.9% 10.000 – 15.000 25% 15.000 – 20.000 46.9% 20.000 – 25.000 17.5% 25.000 – 30.000 6.9% > 30.000 1.9%

*Income per month in PHP #Percentage of respondents