IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/121824.html
   My bibliography  Save this paper

Class, Caste and Conspicuous Consumption in India

Author

Listed:
  • Mitra, Aruni
  • Mukherji, Ronit

Abstract

Using nationally representative household-level panel data from India, we study status-signalling through conspicuous consumption across castes, religions and economic classes. Conditional on permanent income, Scheduled Castes (SC) and Scheduled Tribes (ST) spend more, while Muslims and Christians spend less on visible consumption compared to upper-caste Hindus. There is no significant difference between the visible expenditures of the upper caste and the Otherwise Backward Castes (OBC) and Sikhs and Jains. Lower-income households spend more on conspicuous consumption regardless of caste and religion than their richer counterparts. Conspicuous spending is higher during festivals and lower in areas with higher property crime rates and visible inequality. Among OBCs, SCs and Muslims, visible spending is higher among those receiving government transfers than those without public transfer income.

Suggested Citation

  • Mitra, Aruni & Mukherji, Ronit, 2024. "Class, Caste and Conspicuous Consumption in India," MPRA Paper 121824, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:121824
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/121824/1/MPRA_paper_121824.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xavier Jaravel, 2021. "Inflation Inequality: Measurement, Causes, and Policy Implications," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 599-629, August.
    2. Kerwin Kofi Charles & Erik Hurst & Nikolai Roussanov, 2009. "Conspicuous Consumption and Race," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 425-467.
    3. Kenneth J. Arrow & Partha S. Dasgupta, 2009. "Conspicuous Consumption, Inconspicuous Leisure," Economic Journal, Royal Economic Society, vol. 119(541), pages 497-516, November.
    4. Mejía, Daniel & Restrepo, Pascual, 2016. "Crime and conspicuous consumption," Journal of Public Economics, Elsevier, vol. 135(C), pages 1-14.
    5. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    6. Anukriti, S. & Kwon, Sungoh & Prakash, Nishith, 2022. "Saving for dowry: Evidence from rural India," Journal of Development Economics, Elsevier, vol. 154(C).
    7. Giacomo De Giorgi & Anders Frederiksen & Luigi Pistaferri, 2020. "Consumption Network Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 130-163.
    8. Ireland, Norman J., 1994. "On limiting the market for status signals," Journal of Public Economics, Elsevier, vol. 53(1), pages 91-110, January.
    9. König, Tobias & Lausen, Tobias, 2016. "Relative consumption preferences and public provision of private goods," Discussion Papers, Research Unit: Market Behavior SP II 2016-213, WZB Berlin Social Science Center.
    10. repec:hal:spmain:info:hdl:2441/4vljiub8888igqug7jdg3a9fck is not listed on IDEAS
    11. Ori Heffetz, 2011. "A Test of Conspicuous Consumption: Visibility and Income Elasticities," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1101-1117, November.
    12. Francis Bloch & Vijayendra Rao & Sonalde Desai, 2004. "Wedding Celebrations as Conspicuous Consumption: Signaling Social Status in Rural India," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    13. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, June.
    14. Khamis, Melanie & Prakash, Nishith & Siddique, Zahra, 2012. "Consumption and social identity: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 353-371.
    15. Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-373, June.
    16. Chinmayi Srikanth & Shubhasis Dey, 2023. "Conspicuous consumption for social parity," WIDER Working Paper Series wp-2023-78, World Institute for Development Economic Research (UNU-WIDER).
    17. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    18. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    19. Andreas Chai & Wolfhard Kaus & Christian Kiedaisch, 2019. "Conspicuous Spending And The Income Distribution Of Social Groups," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1324-1341, July.
    20. Arthur Lewbel & Samuel Norris & Krishna Pendakur & Xi Qu, 2022. "Consumption peer effects and utility needs in India," Quantitative Economics, Econometric Society, vol. 13(3), pages 1257-1295, July.
    21. Deepika Kandpal & Dibyendu Maiti, 2022. "Social Identity, Local Neighbourhood Effect and Conspicuous Consumption: Evidence From India," Working papers 327, Centre for Development Economics, Delhi School of Economics.
    22. Roychowdhury, Punarjit, 2019. "Peer effects in consumption in India: An instrumental variables approach using negative idiosyncratic shocks," World Development, Elsevier, vol. 114(C), pages 122-137.
    Full references (including those not matched with items on IDEAS)

    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. Omer Moav and & Zvika Neeman, 2012. "Saving Rates and Poverty: The Role of Conspicuous Consumption and Human Capital," Economic Journal, Royal Economic Society, vol. 122(563), pages 933-956, September.
    2. Deepika Kandpal & Dibyendu Maiti, 2022. "Social Identity, Local Neighbourhood Effect and Conspicuous Consumption: Evidence From India," Working papers 327, Centre for Development Economics, Delhi School of Economics.
    3. Khamis, Melanie & Prakash, Nishith & Siddique, Zahra, 2012. "Consumption and social identity: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 353-371.
    4. König, Tobias & Lausen, Tobias, 2016. "Relative consumption preferences and public provision of private goods," Discussion Papers, Research Unit: Market Behavior SP II 2016-213, WZB Berlin Social Science Center.
    5. repec:hal:spmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    7. Friedrichsen, Jana, 2018. "Signals Sell: Product Lines when Consumers Differ Both in Taste for Quality and Image Concern," Rationality and Competition Discussion Paper Series 70, CRC TRR 190 Rationality and Competition.
    8. Kaus, Wolfhard, 2013. "Conspicuous consumption and “race”: Evidence from South Africa," Journal of Development Economics, Elsevier, vol. 100(1), pages 63-73.
    9. Leites, Martín & Rivero, Analía & Salas, Gonzalo, 2024. "The positionality of goods and the positional concern’s origin," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    10. Clément Bellet, 2017. "Essays on inequality, social preferences and consumer behavior [Inégalités, préférences sociales et comportement du consommateur]," SciencePo Working papers Main tel-03455045, HAL.
    11. Pascal Courty & Merwan Engineer, 2019. "A pure hedonic theory of utility and status: Unhappy but efficient invidious comparisons," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(4), pages 601-621, August.
    12. Moav, Omer & Neeman, Zvika, 2008. "Conspicuous Consumption, Human Capital and Poverty," CEPR Discussion Papers 6864, C.E.P.R. Discussion Papers.
    13. Banuri, Sheheryar & Nguyen, Ha, 2023. "Borrowing to keep up (with the Joneses): Inequality, debt, and conspicuous consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 222-242.
    14. Clément Bellet, 2017. "Essays on inequality, social preferences and consumer behavior [Inégalités, préférences sociales et comportement du consommateur]," SciencePo Working papers tel-03455045, HAL.
    15. repec:hal:spmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    16. Sugata Marjit & Sattwik Santra & Koushik Kumar Hati, 2015. "Relative Social Status and Conflicting Measures of Poverty - A Behavioral Analytical Model," Discussion Papers Series 543, School of Economics, University of Queensland, Australia.
    17. repec:spo:wpmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    18. Jinkins, David, 2016. "Conspicuous consumption in the United States and China," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 115-132.
    19. Santra, Sattwik & Chaudhury, Ranajoy, 2015. "The American Pride and Aspiration," MPRA Paper 61649, University Library of Munich, Germany.
    20. Omer Gokcekus & Yui Suzuki, 2014. "Is there a Corruption-effect on Conspicuous Consumption?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(3), pages 215-235, August.
    21. Robin Cowan & William Cowan & G.M. Peter Swann, 2004. "Waves in consumption with interdependence among consumers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(1), pages 149-177, February.
    22. Schulz, Jan & Mayerhoffer, Daniel M., 2021. "A network approach to consumption," BERG Working Paper Series 173, Bamberg University, Bamberg Economic Research Group.
    23. Constantinos Alexiou & Adimulya Kartiyasa, 2020. "Does greater income inequality cause increased work hours? New evidence from high income economies," Bulletin of Economic Research, Wiley Blackwell, vol. 72(4), pages 380-392, October.
    24. Chai, Andreas & Stepanova, Elena & Moneta, Alessio, 2023. "Quantifying expenditure hierarchies and the expansion of global consumption diversity," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 860-886.

    More about this item

    Keywords

    conspicuous consumption; caste; religion; income class;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    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:pra:mprapa:121824. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.