There is evidence to suggest that greater income equality can lead to increased status spending. This is because when the gap between the rich and the poor is narrower, people are more likely to feel that they can achieve a higher status through conspicuous consumption. In other words, they may feel more pressure to spend money on luxury goods and services in order to fit in or keep up with their peers.

Additionally, research has found that people who live in more equal societies tend to be happier and more satisfied with their lives. This may be because they feel less deprived relative to others, and therefore have less need to engage in status spending in order to compensate for feelings of inadequacy or inferiority.

However, it is important to note that the relationship between income equality and status spending is complex and there are many other factors that can influence an individual's spending habits. For example, people who live in more individualistic societies may be more likely to engage in status spending, regardless of the level of income equality.

Overall, the evidence suggests that greater income equality can lead to increased status spending, but there are many other factors that can also influence an individual's spending habits.