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Costly Signals and Conspicuous Consumption

Wed, Nov 15, 2:00 to 3:20pm, Franklin Hall 4, 4th Floor

Abstract

Conspicuous consumption—spending money on lavish things or non-necessities—has been linked to a desire to signal wealth and prestige (Veblen, 1965; Spence, 1973). Scholars have pointed to the negative ramifications of conspicuous consumption such as debt and entrenchment in the criminal lifestyle. Culture and socioeconomic class are central to explanations of consumption as a means of maintaining respect and impressing peers (Anderson, 2000; Whyte, 1943). Whereas trait-based perspectives focus on relatively time stable traits, such as impulsivity (Gottfredson & Hirschi, 1990). While there has been theorizing about consumption there are few empirical investigations testing these explanations. I use these perspectives to guide my analysis of the structural, proximal, and individual level correlates of conspicuous consumption over time. The current study examines the antecedents and outcomes of conspicuous consumption using data from the Pathways to Desistance Study. Results show that income source (legal, illegal) and neighborhood disadvantage are related to conspicuous consumption, net of impulsivity and other individual characteristics. Conspicuous consumption is associated with greater offending variety in the same year but spending money on necessities is associated with a greater offending variety in the following year. This suggests that differential consumption patterns are differentially related to crime.

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