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Class, Caste and Conspicuous Consumption in India

Author

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  • 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
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    References listed on IDEAS

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    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

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