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Self-Esteem and Income Over Time.
Wiebke Bleidorn1, André Kretzschmar1, John F Rauthmann2
1Department of Psychology, University of Zurich.
Higher income boosts self-esteem more than self-esteem boosts income within individuals. This longitudinal study of over 4,000 adults reveals how financial changes impact personal earnings and self-worth.
Area of Science:
- Psychology
- Sociology
- Economics
Background:
- Established link between higher income and higher self-esteem.
- Limited understanding of within-person dynamics between income and self-esteem.
- Conflicting theories on the directionality of the income-self-esteem relationship.
Purpose of the Study:
- To investigate the within-person causal relationship between changes in income and self-esteem.
- To test competing theories on the directionality of the income-self-esteem link.
- To examine if income influences self-esteem or vice versa over time.
Main Methods:
- Utilized 4-year longitudinal data from a representative sample of over 4,000 Dutch adults.
- Employed statistical analyses to examine within-person associations between income and self-esteem.
- Controlled for variables such as employment status, gender, age, and educational background.
Main Results:
- Confirmed significant between-person associations between income and self-esteem.
- Found that increases in self-esteem were more strongly predicted by previous increases in income.
- These within-person effects were consistent across demographic groups and employment status.
Conclusions:
- Self-esteem is influenced by changes in income, suggesting income acts as a significant factor in self-worth.
- While bidirectional effects exist, income appears to be a stronger driver of self-esteem changes than the reverse.
- Findings support theories positing self-esteem as both a consequence and a potential source of personal earnings.
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