IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v159y2022i2d10.1007_s11205-021-02760-1.html
   My bibliography  Save this article

Keeping Up or Giving Up? Income Inequality and Materialism in Europe and the United States

Author

Listed:
  • Jesper Rözer

    (The Amsterdam University of Applied Sciences (HvA))

  • Bram Lancee

    (University of Amsterdam)

  • Beate Volker

    (University of Amsterdam
    Utrecht University)

Abstract

We examine the extent to which income inequality is associated with materialistic values and behavior in Europe and the United States (US). In the US, existing research on materialistic behavior is largely focused on the study of shopping behavior and shows that, when income inequality is higher, individuals search for and buy products that are more luxury. In Europe, the evidence for this phenomenon is mainly based on survey questions on people’s values, and results are mixed. To determine whether these conflicting findings are rooted in methodology or reflect structural differences between the situation of Americans and Europeans, we measure materialistic behavior and values in both the US and Europe. Different types of data are used to test our arguments. In study 1, we use information on materialistic values from the European Social Survey (ESS) and the World Values Survey (WVS) to study the relationship between income inequality and materialistic values, examining the same research question in the contexts of Europe and the United States. In study 2, we use information from Google Trends to examine the relationship between income inequality and internet searching behavior both in Europe and in the United States. Hybrid multilevel models analyzing the variation in these relationships both over time and across regions show that in Europe as well as in the US, income inequality is not associated with materialistic values. However, in the US, materialistic behavior is greatly enhanced when income inequality is high. In contrast, in Europe, increasing income inequality is associated with decreasing materialistic behavior.

Suggested Citation

  • Jesper Rözer & Bram Lancee & Beate Volker, 2022. "Keeping Up or Giving Up? Income Inequality and Materialism in Europe and the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(2), pages 647-666, January.
    • Handle: RePEc:spr:soinre:v:159:y:2022:i:2:d:10.1007_s11205-021-02760-1
    DOI: 10.1007/s11205-021-02760-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-021-02760-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-021-02760-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 447-487.
    2. Bjørnskov, Christian & Dreher, Axel & Fischer, Justina A.V. & Schnellenbach, Jan & Gehring, Kai, 2013. "Inequality and happiness: When perceived social mobility and economic reality do not match," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 75-92.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December.
    5. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    6. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    7. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    8. Alberto Alesina & Stefanie Stantcheva & Edoardo Teso, 2018. "Intergenerational Mobility and Preferences for Redistribution," American Economic Review, American Economic Association, vol. 108(2), pages 521-554, February.
    9. Giacomo Corneo & Olivier Jeanne, 2001. "Status, the Distribution of Wealth, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(2), pages 283-293, June.
    10. Bell, Linda A. & Freeman, Richard B., 2001. "The incentive for working hard: explaining hours worked differences in the US and Germany," Labour Economics, Elsevier, vol. 8(2), pages 181-202, May.
    11. Jean-Noël Kapferer & Vincent Bastien, 2009. "The specificity of luxury management: Turning marketing upside down," Post-Print hal-00493180, HAL.
    12. Nigel Kragten & Jesper Rözer, 2017. "The Income Inequality Hypothesis Revisited: Assessing the Hypothesis Using Four Methodological Approaches," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1015-1033, April.
    13. repec:bla:scandj:v:103:y:2001:i:2:p:283-93 is not listed on IDEAS
    14. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
    15. Silvia Bellezza & Neeru Paharia & Anat Keinan, 2017. "Conspicuous Consumption of Time: When Busyness and Lack of Leisure Time Become a Status Symbol," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(1), pages 118-138.
    16. Frederick Solt, 2016. "The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1267-1281, November.
    17. Belk, Russell W, 1985. "Materialism: Trait Aspects of Living in the Material World," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 265-280, December.
    18. Albert O. Hirschman & Michael Rothschild, 1973. "The Changing Tolerance for Income Inequality in the Course of Economic DevelopmentWith A Mathematical Appendix," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(4), pages 544-566.
    19. Rik Linssen & Luuk Kempen & Gerbert Kraaykamp, 2011. "Subjective Well-being in Rural India: The Curse of Conspicuous Consumption," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 101(1), pages 57-72, March.
    20. Kawachi, I. & Kennedy, B.P. & Lochner, K. & Prothrow-Stith, D., 1997. "Social capital, income inequality, and mortality," American Journal of Public Health, American Public Health Association, vol. 87(9), pages 1491-1498.
    21. Rishtee K Batra & Tanuka Ghoshal & Gita JoharEditor & Derek RuckerAssociate Editor, 2017. "Fill Up Your Senses: A Theory of Self-Worth Restoration through High-Intensity Sensory Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 916-938.
    22. Jin, Ye & Li, Hongbin & Wu, Binzhen, 2011. "Income inequality, consumption, and social-status seeking," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 191-204, June.
    23. Layte, Richard & Whelan, Christopher T., 2014. "Who Feels Inferior? A Test of the Status Anxiety Hypothesis of Social Inequalities in Health," Papers WP476, Economic and Social Research Institute (ESRI).
    24. Liselot Hudders & Mario Pandelaere, 2012. "The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(3), pages 411-437, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaodi Qin & Haitao Wu & Yifeng Xie & Xiaofang Zhang, 2022. "Lagging behind the Joneses: Relative Deprivation and Household Consumption in Rural China," Agriculture, MDPI, vol. 12(11), pages 1-14, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    2. Martin Schröder, 2018. "Income Inequality and Life Satisfaction: Unrelated Between Countries, Associated Within Countries Over Time," Journal of Happiness Studies, Springer, vol. 19(4), pages 1021-1043, April.
    3. Teresa María García Muñoz & Juliette Milgram Baleix & Omar Odeh Odeh, 2022. "System Justification Beliefs and Life Satisfaction. The role of inequality aversion and support for redistribution," ThE Papers 22/15, Department of Economic Theory and Economic History of the University of Granada..
    4. Bohmann, Sandra & Kalleitner, Fabian, 2023. "Subjective Inequity Aversion: Unfair Inequality, Subjective Well-Being, and Preferences for Redistribution," SocArXiv g8arw, Center for Open Science.
    5. Vincenzo Atella & Jay Coggins & Federico Perali, 2005. "Aversion to inequality in Italy and its determinants," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(2), pages 117-144, January.
    6. Laméris, Maite D. & Garretsen, Harry & Jong-A-Pin, Richard, 2020. "Political ideology and the intragenerational prospect of upward mobility," European Journal of Political Economy, Elsevier, vol. 62(C).
    7. Juliana Londoño-Vélez, 2022. "The Impact of Diversity on Perceptions of Income Distribution and Preferences for Redistribution," NBER Working Papers 30386, National Bureau of Economic Research, Inc.
    8. Yoram Amiel & Michele Bernasconi & Frank Cowell & Valentino Dardanoni, 2015. "Do we value mobility?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(2), pages 231-255, February.
    9. AMENDOLA, Adalgiso & DELL'ANNO, Roberto & PARISI, Lavinia, 2015. "Happiness, Inequality and Relative Concerns in European Countries," CELPE Discussion Papers 136, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    10. Silvia Mendolia & Peter Siminski, 2016. "New Estimates of Intergenerational Mobility in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 361-373, September.
    11. Marc Suhrcke, 2001. "Preferences for Inequality: East vs. West," Papers inwopa01/17, Innocenti Working Papers.
    12. Yang, Xiaoliang & Zhou, Peng, 2022. "Wealth inequality and social mobility: A simulation-based modelling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 307-329.
    13. Marcelo Bérgolo & Gabriel Burdín & Santiago Burone & Mauricio de Rosa & Matías Giaccobasso & Martín Leites, 2020. "Dissecting Inequality-Averse Preferences," Documentos de Trabajo (working papers) 20-19, Instituto de Economía - IECON.
    14. Knight, John & Gunatilaka, Ramani, 2022. "Income inequality and happiness: Which inequalities matter in China?," China Economic Review, Elsevier, vol. 72(C).
    15. John Knight & Ramani Gunatilaka, 2020. "Income inequality and happiness: perceived or actual, widely or narrowly defined, fair or unfair, self- or community-centred inequality?," Economics Series Working Papers 922, University of Oxford, Department of Economics.
    16. Claudia Senik, 2008. "Ambition and Jealousy: Income Interactions in the ‘Old’ Europe versus the ‘New’ Europe and the United States," Economica, London School of Economics and Political Science, vol. 75(299), pages 495-513, August.
    17. Justina A.V. Fischer & Benno Torgler, 2013. "Do Positional Concerns Destroy Social Capital: Evidence From 26 Countries," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1542-1565, April.
    18. Mu, Ren, 2022. "Perceived relative income, fairness, and the role of government: Evidence from a randomized survey experiment in China," China Economic Review, Elsevier, vol. 73(C).
    19. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.
    20. Laura Ravazzini & Florian Chávez-Juárez, 2018. "Which Inequality Makes People Dissatisfied with Their Lives? Evidence of the Link Between Life Satisfaction and Inequalities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 1119-1143, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:159:y:2022:i:2:d:10.1007_s11205-021-02760-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.