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

Ronelle Burger (), Megan Louw (), Brigitte Barbara Isabel de Oliveira Pegado () and Servaas van der Berg ()
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Brigitte Barbara Isabel de Oliveira Pegado: Department of Economics, University of Stellenbosch

No 14/2014, Working Papers from Stellenbosch University, Department of Economics

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 homogenous 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, it 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’.

Keywords: middle class; South Africa; conspicuous consumption (search for similar items in EconPapers)
JEL-codes: D11 D12 D31 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-hme
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Citations: View citations in EconPapers (2)

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