Keeping Up or Giving Up? Income Inequality and Materialism in Europe and the United States

Abstract

AbstractWe examine the extent to which income inequality is associated with materialistic values and behavior in Europe and the United States (US). In the US, existing research on materialistic behavior is largely focused on the study of shopping behavior and shows that, when income inequality is higher, individuals search for and buy products that are more luxury. In Europe, the evidence for this phenomenon is mainly based on survey questions on people’s values, and results are mixed. To determine whether these conflicting findings are rooted in methodology or reflect structural differences between the situation of Americans and Europeans, we measure materialistic behavior and values in both the US and Europe. Different types of data are used to test our arguments. In study 1, we use information on materialistic values from the European Social Survey (ESS) and the World Values Survey (WVS) to study the relationship between income inequality and materialistic values, examining the same research question in the contexts of Europe and the United States. In study 2, we use information from Google Trends to examine the relationship between income inequality and internet searching behavior both in Europe and in the United States. Hybrid multilevel models analyzing the variation in these relationships both over time and across regions show that in Europe as well as in the US, income inequality is not associated with materialistic values. However, in the US, materialistic behavior is greatly enhanced when income inequality is high. In contrast, in Europe, increasing income inequality is associated with decreasing materialistic behavior.