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Economic Inequality Increases Materialism and Conspicuous Consumption

2025/11/02 by Yan Wang, Xinyi Zhou, Wenjing Zhou +2
Economics, Econometrics and Finance · Social Sciences · #Economic and Technological Innovation #Global Economic and Social Development #Income, Poverty, and Inequality

paper · doi:10.1080/01973533.2025.2565153

openalex created_date 2025/11/02 · openalex publication_date 2025/11/02 · openalex updated_date 2026/07/23

Abstract

Social rank theory posits that economic inequality intensifies individuals’ focus on wealth status, though causal evidence has remained limited. This research combines a large-scale cross-national correlational analysis (Study 1; n = 89,565) across 42 nations with four experimental studies (Studies 2–5; total n = 659). Correlational data showed a link between economic inequality and materialism; experimental manipulations confirmed causality, showing that heightened perceived inequality increased materialistic values across socioeconomic groups. Notably, these effects manifested specifically in downstream consequences for conspicuous consumption rather than general consumption patterns. The findings persisted across multiple inequality metrics and varied operationalizations of conspicuous consumption. The work advances theoretical understanding of materialism’s roots while offering novel insights into the societal ramifications of economic inequality.

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