Following the status-anxiety hypothesis, the psychological consequences of income inequality should be particularly severe for economically vulnerable individuals. Oddly, however, income inequality ...is often found to affect vulnerable low-income and advantaged high-income groups equally. We argue that economic vulnerability is better captured by a financial-scarcity measure and hypothesize that income inequality primarily impairs the psychological health of people facing scarcity. First, repeated cross-sectional international data (from the World Values Survey: 146,034 participants; 105 country waves) revealed that the within-country effect of national income inequality on feelings of unhappiness was limited to individuals facing scarcity (≈25% of the World Values Survey population). Second, longitudinal national data (Swiss Household Panel: 14,790 participants; 15,595 municipality years) revealed that the within-life-course effect of local income inequality on psychological health problems was also limited to these individuals (< 10% of the Swiss population). Income inequality by itself may not be a problem for psychological health but, rather, may be a catalyst for the consequences of financial scarcity.
Social scientists have begun to extensively study how living in contexts with high income inequality affects psychological outcomes. Herein we overview a conceptual framework that integrates, ...organizes, and extends these complex (and sometimes contradictory) findings. First, we describe studies showing that income inequality breeds an ethos of competitiveness. Second, we argue that the inequality-competitiveness relation explains why income inequality (a) promotes status-focused behaviors aimed at lifting oneself up and/or bringing others down, (b) harms social relations when they pose an obstacle to one’s economic advancement, (c) exerts opposing effects on well-being via avoidance motivation (focusing on the risk of economic failure) and approach motivation (focusing on the prospect of economic success), and (d) represents a threat to those who perceive they do not have sufficient individual/contextual resources to cope with the demands of competition but a challenge to those with sufficient resources. We also discuss limitations and future directions for research.
Objective
Scholars disagree on whether income inequality has incentive or disincentive effects. In the present research, we move beyond such debate and focus on the motivational processes that income ...inequality predicts. First, income inequality makes economic stratification salient; therefore, it should promote perceived competitiveness. Second, competitiveness can be appraised as both a challenge and a threat; therefore, it should promote both approach and avoidance motivation.
Method
In three studies (N = 2,543), U.S. residents from various ZIP codes reported the extent to which they perceived competitiveness in their town/city (Studies 1–3), as well as their economic achievement goals, achievement motives, and self‐regulatory foci (Studies 2–3).
Results
Level of local income inequality was found to be a positive predictor—via increased perceived competitiveness—of other‐approach economic goals, need for achievement, and promotion focus, as well as other‐avoidance economic goals, fear of failure (specifically, the shame/embarrassment component), and prevention focus. Furthermore, actual and perceived income inequality were positively correlated.
Conclusions
The conceptual and empirical work herein is the first to show how the economic environment predicts individuals’ perceptions of competitiveness, influencing personal goals, motives, and orientations. It provides a more nuanced perspective on the implications of income inequality than perspectives currently available.
Trust is the social glue that holds society together. The academic consensus is that trust is weaker among lower-class individuals and in unequal regions/countries, which is often considered a threat ...to a healthy society. However, existing studies are inconsistent and have two limitations: (i) variability in the measurement of social class and (ii) small numbers of higher level units (regions/countries). We addressed these problems using large-scale (cross-)national representative surveys (encompassing 560,000+ participants from 1,500+ regional/national units). Multilevel analysis led to two consistent sets of findings. First, the effects of social class on social trust were systematically positive, whereas the effects on institutional trust depended on the way social class was measured. Second, the effects of income inequality on social and institutional trust were systematically nonsignificant and smaller than the smallest negative effect of interest. Our findings suggest that researchers need to update their knowledge: social class—not income inequality—predicts trust.
Sociocognitive conflict arises when people hold different views or ideas about the same object, and it has the potential to promote learning, cognitive development, and positive social relations. The ...promotion of these outcomes, however, depends on how the conflict is regulated and with what goals: Mastery goals predict epistemic conflict regulation and the elaboration of multiple ideas, performance-approach goals predict competitive conflict regulation and the promotion of one’s own ideas, and performance-avoidance goals predict protective conflict regulation and yielding to other people’s ideas. Conflict regulation thus determines the conditions under which confronting diverging ideas results in positive cognitive and relational outcomes.
The spatial patterning of present-day racial bias in Southern states is predicted by the prevalence of slavery in 1860 and the structural inequalities that followed. Here we extend the investigation ...of the historical roots of implicit bias to areas outside the South by tracing the Great Migration of Black southerners to Northern and Western states. We found that the proportion of Black residents in each county (N = 1,981 counties) during the years of the Great Migration (1900–1950) was significantly associated with greater implicit bias among White residents today. The association was statistically explained by measures of structural inequalities. Results parallel the pattern seen in Southern states but reflect population changes that occurred decades later as cities reacted to larger Black populations. These findings suggest that implicit biases reflect structural inequalities and the historical conditions that produced them.
This study aims to investigate changes in the income–health gradient over the later life course. We test the age-as-leveler, the cumulative advantage/disadvantage, and the persistent inequality ...pattern for physical and cognitive health domains, and analyze whether these patterns are gendered. We used HRS data (1992–2016) and Poisson growth curve models to predict multimorbidity (33,860 participants) as an indicator of physical health and memory (25,291 participants) as an indicator of cognitive health. We disentangled the within-participant from the between-participant effects. For multimorbidity, the income–health gradient weakened as individuals aged; whereas for memory, the income–health gradient strengthened as individuals aged. The cumulative advantage/disadvantage of higher/lower income on memory may be more pronounced among women than men. Findings were confirmed by sensitivity analyses. Findings suggest that the support for the age-as-leveler or cumulative advantage/disadvantage pattern may depend on health domains and the effect strength may depend on gender.
We created a life-goal assessment drawing from self-determination theory and achievement goal literature, examining its predictive power regarding immoral behavior and subjective well-being. Our ...source items assessed direction and energization of motivation, via the distinction between intrinsic and extrinsic aims and between intrinsic and extrinsic reasons for acting, respectively. Fused source items assessed four goal complexes representing a combination of direction and energization. Across three studies (Ns = 109, 121, and 398), the extrinsic aim/extrinsic reason complex was consistently associated with immoral and/or unethical behavior beyond four source and three other goal complex variables. This was consistent with the triangle model of responsibility’s claim that immoral behaviors may result when individuals disengage the self from moral prescriptions. The extrinsic/extrinsic complex also predicted lower subjective well-being, albeit less consistently. Our goal complex approach sheds light on how self-determination theory’s goal contents and organismic integration mini-theories interact, particularly with respect to unethical behavior.
There exists a racial income gap in America: Blacks earn ∼38% less than Whites, but little is known about its relation to interracial psychological outcomes. Toward this end, the present research ...examined associations between the Black–White income gap and perceptions of interracial competition and, subsequently, negative intergroup outcomes. Study 1 extracted data from a large, preexisting data set (N = 2,543) and provided initial support for the hypothesis that higher levels of racial income inequality are associated with increased perceptions of competition. Study 2 then recruited approximately equal numbers of White and Black participants (N = 1,731) and demonstrated that increases in racial income inequality predict increased perceptions of competition, discrimination, behavioral avoidance, and intergroup anxiety. Implications for theory development and public policy are discussed.
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