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Understanding consumption patterns of the established and emerging South African black middle class

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Listed:
  • Ronelle Burger
  • Megan Louw
  • Brigitte Barbara Isabel de Oliveira Pegado
  • Servaas van der Berg

Abstract

Existing empirical research on consumption patterns of the South African black middle class leans either on the theory of conspicuous consumption or culture-specific utility functions. This paper departs from treatment of the black middle class as a homogeneous group. By differentiating between a securely established group, with characteristics and consumption patterns similar to the white middle class, and an emerging group, often with weaker productive characteristics, the paper formally introduces economic vulnerability as a driver of consumption patterns. Households new to the middle class or uncertain of continued class membership are viewed as vulnerable. Consumption patterns of the emerging black middle class are observed to diverge substantially from the other groups, in terms of greater signalling of social status via visible consumption and preoccupation with reducing an historical asset deficit. We expect many of its members to join the established classes over time, converging to a new 'middle class mean'.

Suggested Citation

  • Ronelle Burger & Megan Louw & Brigitte Barbara Isabel de Oliveira Pegado & Servaas van der Berg, 2015. "Understanding consumption patterns of the established and emerging South African black middle class," Development Southern Africa, Taylor & Francis Journals, vol. 32(1), pages 41-56, January.
  • Handle: RePEc:taf:deveza:v:32:y:2015:i:1:p:41-56
    DOI: 10.1080/0376835X.2014.976855
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    1. 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.
    2. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    3. Justin Visagie & Dorrit Posel, 2013. "A reconsideration of what and who is middle class in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(2), pages 149-167, June.
    4. Kaus, Wolfhard, 2013. "Conspicuous consumption and “race”: Evidence from South Africa," Journal of Development Economics, Elsevier, vol. 100(1), pages 63-73.
    5. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, July.
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    7. Peter Alexander, 2010. "Rebellion of the poor: South Africa's service delivery protests -- a preliminary analysis," Review of African Political Economy, Taylor & Francis Journals, vol. 37(123), pages 25-40, March.
    8. Sihaam Nieftagodien & Servaas van der Berg, 2007. "Consumption patterns and the black middle class: The role of assets," Working Papers 02/2007, Stellenbosch University, Department of Economics.
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    Cited by:

    1. Srivastava, Abhinav & Mukherjee, Srabanti & Jebarajakirthy, Charles, 2020. "Aspirational consumption at the bottom of pyramid: A review of literature and future research directions," Journal of Business Research, Elsevier, vol. 110(C), pages 246-259.
    2. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    3. Never, Babette & Albert, Jose Ramon & Fuhrmann, Hanna & Gsell, Sebastian & Jaramillo, Miguel & Kuhn, Sascha & Senadza, Bernardin, 2020. "Carbon consumption patterns of emerging middle classes," IDOS Discussion Papers 13/2020, German Institute of Development and Sustainability (IDOS).
    4. Peter Tshepiso Ndhlovu & Abiodun Olusola Omotayo & Adeyemi Oladapo Aremu & Wilfred Otang-Mbeng, 2020. "Herbal-Based Cosmeceuticals and Economic Sustainability among Women in South African Rural Communities," Economies, MDPI, vol. 8(3), pages 1-14, June.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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