Marriage Market Matching and Conspicuous Consumption in China

Abstract

Visible expenditures which convey higher socioeconomic status may help individuals differentiate themselves in the marriage market when there is competition for partners and imperfect information. We examine a unique dataset of automobile purchasers in China to investigate the extent to which skewed sex ratios influence expenditure decisions for this highly visible commodity. Using a triple difference approach, we show that unmarried male consumers who face an unfavorable sex ratio purchase more expensive, luxury vehicles than their married peers. Lower income borrowers and those residing in regions with the worst sex ratios exhibit the largest relative degree of conspicuous consumption. In addition to the direct cost of consumption signaling, we demonstrate that this behavior generates negative externalities in the form of lower average fuel economy and higher average vehicle weight. As it has worsened sex ratios, status competition and the associated negative repercussions we identify represent unintended consequences of China's one child policy. (JEL O12, E21, J12)

Parental housing wealth and children’s marriage prospects in China—evidence from CHARLS

“…The skewed sex ratio affects society in many aspects, such as the crime rate(Edlund et al, 2013), labor force participation(Angrist, 2002), entrepreneurship behaviors(Chang and Zhang, 2015), and consumption behavior(Grier et al, 2016).2 In China, the sex ratio of the population aged 0-19 is 114.84 males to 100 females, according to 2010 Population Census Data of the People's Republic of China.3 In our data, only 11.62% of unmarried children in 2015 own a house.…”

Conspicuous consumption for social parity

“…Mnisi and Ngcongo (2021) discuss the importance of conspicuous consumption among four African subcultures and how this helps in re-humanization. The role of conspicuous consumption in marriage market signalling is studied in the Chinese context by Grier et al (2016).…”

The Interaction between Parents and Children

“…This chapter is based on.20 The skewed sex ratio affects society in many aspects, such as the crime rate(Edlund et al 2013), labor force participation(Angrist 2002), entrepreneurship behaviors(Chang and Zhang 2015), and consumption behaviour(Grier et al 2016). 21 In China, the sex ratio of the population aged 0-19 is 114.84 males to 100 females, according to 2010 Population Census Data of the People's Republic of China.…”