Perceived income inequality increases status seeking among low social class individuals

Abstract

Prior correlational research demonstrated that in a society with high income inequality, people are more likely to seek high status. The present study aimed to establish a causal relation between income inequality and status seeking by investigating the effects of perceived income inequality on the pursuit of positional goods. Moreover, we investigated whether the relation between perceived income inequality and the pursuit of positional goods is moderated by subjective social status. We manipulated high versus low income inequality and found that perceived income inequality increased the pursuit of positional goods among participants with low social status, but not among participants with high social status. Theoretical and practical implications of the findings are discussed.