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Showing off to the new neighbors? Income, socioeconomic status and consumption patterns of internal migrants

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  • Alexander M. Danzer

    (Ludwig-Maximilians-Universität München)

  • Barbara Dietz
  • Kseniia Gatskova
  • Achim Schmillen

Abstract

This paper analyses incomes and socioeconomic status of internal migrants over time and in comparison to their new neighbors and investigates whether status consumption is a way for newly arrived city dwellers to signal their social standing. Using a novel dataset from the emerging economy of Kazakhstan we find that internal migrants earn an income and status premium for their move. In a comparison to indigenous city dwellers their earnings and household incomes are not significantly different; however, mobile households report a significantly higher subjective socio-economic status. Exploiting expenditure data, we find that recent migrant households gain status from using visible consumption to impress their new neighbors. This signaling might be used as adaptation to the new economic and social environment or to gain access to social capital.

Suggested Citation

  • Alexander M. Danzer & Barbara Dietz & Kseniia Gatskova & Achim Schmillen, 2013. "Showing off to the new neighbors? Income, socioeconomic status and consumption patterns of internal migrants," Working Papers 330, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    • Handle: RePEc:ost:wpaper:330
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    Cited by:

    1. Gang, Ira N. & Schmillen, Achim, 2017. "Sometimes, winners lose: Economic disparity and indigenization in Kazakhstan," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 605-621.
    2. World Bank Group, 2016. "Kazakhstan Jobs Strategy," World Bank Publications - Reports 27266, The World Bank Group.
    3. Chen, Xiaofen, 2018. "Why do migrant households consume so little?," China Economic Review, Elsevier, vol. 49(C), pages 197-209.
    4. Cheng, Zhiming, 2021. "Education and consumption: Evidence from migrants in Chinese cities," Journal of Business Research, Elsevier, vol. 127(C), pages 206-215.
    5. Mariya Hake & Philipp Poyntner, 2022. "Keeping Up With the Novaks? Income Distribution as a Determinant of Household Debt in CESEE," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 224-260, April.
    6. Zsoka Koczan, 2022. "Perceptions of economic well‐being in the Western Balkans," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(4), pages 845-867, October.
    7. Qin, Xiaodi & Wu, Haitao & Li, Rongrong, 2022. "Digital finance and household carbon emissions in China," China Economic Review, Elsevier, vol. 76(C).
    8. repec:ost:wpaper:345 is not listed on IDEAS

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    More about this item

    Keywords

    Absolute and relative welfare; income; status consumption; conspicuous consumption; signaling model; adaptation; internal migration; rural-urban migration; emerging economy; Kazakhstan; socioeconomic status;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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