Subjective Well-being in Rural India: The Curse of Conspicuous Consumption |
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Authors: | Rik Linssen Luuk van Kempen Gerbert Kraaykamp |
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Institution: | (1) Department of Political Science, Maastricht University, Maastricht, The Netherlands;(2) Centre for International Development Issues Nijmegen, Radboud University Nijmegen, Nijmegen, The Netherlands;(3) Department of Sociology, Radboud University Nijmegen, Nijmegen, The Netherlands |
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Abstract: | Using data on 697 individuals from 375 rural low income households in India, we test expectations on the effects of relative
income and conspicuous consumption on subjective well-being. The results of the multi-level regression analyses show that
individuals who spent more on conspicuous consumption report lower levels of subjective well-being. Surprisingly an individual’s
relative income position does not affect feelings of well-being. Motivated by positional concerns, people do not passively
accept their relative rank but instead consume conspicuous goods to keep up with the Joneses. Conspicuous consumption always
comes at the account of the consumption of basic needs. Our analyses point at a positional treadmill effect of the consumption
of status goods. |
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