By Andrew C. Loignon
Center for Creative Leadership
David J. Scheaf
Baylor University
Summary
This paper introduces a novel perspective on the study of income in organizational research by examining the dynamic changes in income over a lifetime, termed income mobility. Traditionally, research has focused either on the effects of current income levels on thoughts, feelings, and behaviors or on the impact of childhood family income on adult psychology. However, this study argues that income is not static but changes over time, significantly influencing an individual’s psychology and career outcomes.
The authors apply gestalt characteristics theory to income mobility, proposing that salient features of income changes (such as beginning, end, peak, trough, slope, and variability) inform core self-evaluations. They argue that people consider not just their current earnings, but how their earnings have changed over time when forming self-evaluations. The study hypothesizes that these core self-evaluations, influenced by income mobility, subsequently affect both objective and subjective career success.
Using data from the National Longitudinal Survey of Youth 1979 cohort (NLSY79), which includes over 12,000 U.S. adults tracked from 1980 to 2014, the researchers employed path models to test their hypotheses. Their findings support the proposed relationships between gestalt characteristics of income mobility and core self-evaluations. Importantly, the study demonstrates that core self-evaluations are predicted by income mobility, contrary to previous assumptions of their stability.
The paper presents several theoretical implications. First, it treats income as a dynamic resource changing over time, extending beyond previous static conceptualizations. Second, it applies gestalt characteristics theory to understand how income mobility affects psychology. Finally, it contributes to the core self-evaluation literature by showing how these self-concepts can change over time in response to socioeconomic factors.
This research presents a new approach to understanding the complex relationships between income, self-evaluation, and career outcomes. By considering the dynamic nature of income over a lifetime, it offers fresh insights into how socioeconomic changes can shape an individual’s psychology and subsequent career trajectory.
Citation
Loignon, A.C., & Schaef, D.J. (2024). Rags to riches or falling from grace: Gestalt characteristics of income mobility, core self-evaluations, and career success. Journal of Business Research. Advance online publication. https://linkinghub.elsevier.com/retrieve/pii/S014829632400482X
