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Updated: Jul 16, 2025

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Self-Esteem and Income Over Time.

Wiebke Bleidorn1, André Kretzschmar1, John F Rauthmann2

  • 1Department of Psychology, University of Zurich.

Psychological Science
|September 21, 2023
PubMed
Summary
This summary is machine-generated.

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.

Keywords:
LISSRI-CLPMincomelongitudinalopen materialspreregisteredself-esteemwithin-person

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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.