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The Effects of Ethnic Identity on Household Budget Allocation to Status Conveying Goods

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  • Angela Fontes
  • Jessie Fan

Abstract

The theory of compensatory consumption suggests that a possible lack of traditional avenues for fulfilling needs for social status may lead ethnic minorities to shift measures of social status from traditional indicators such as occupational prestige to consumption indicators of status conveying goods. In this study we investigate whether a household’s ethnic identity affects its budget allocation to status conveying goods. Annual budget shares for apparel, housing, and home furnishings are used for measuring status consumption. Results show that Asian American households allocate more of their budget to housing, while African American more to apparel, compared to European households. Hispanic households allocate more of their budget to both apparel and housing than European American households, but to a lesser degree compared to Asian Americans to housing and African Americans to apparel. Copyright Springer Science+Business Media, Inc. 2006

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  • Angela Fontes & Jessie Fan, 2006. "The Effects of Ethnic Identity on Household Budget Allocation to Status Conveying Goods," Journal of Family and Economic Issues, Springer, vol. 27(4), pages 643-663, December.
    • Handle: RePEc:kap:jfamec:v:27:y:2006:i:4:p:643-663
    DOI: 10.1007/s10834-006-9031-x
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    Cited by:

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    3. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
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    6. Roudi Nazarinia Roy & Anthony G. James & Tiffany L. Brown, 2021. "Racial/Ethnic Minority Families," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 84-100, July.
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    8. Jamal, Ahmad & Shukor, Syadiyah Abdul, 2014. "Antecedents and outcomes of interpersonal influences and the role of acculturation: The case of young British-Muslims," Journal of Business Research, Elsevier, vol. 67(3), pages 237-245.
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    10. Ramendra Singh & Sangeeta Trott, 2019. "Non-deceptive deliberate purchase of brand lookalikes: a BOP customer value perspective," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(1), pages 15-26, March.

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