This study examines the impact of income mobility—changes in income over a lifetime—on an individual’s psychology and career outcomes, most notably, whether a person attains a formal position of leadership.
Using data from over 12,000 U.S. adults tracked from 1980 to 2014, the research supports the relationship between income mobility characteristics and core self-evaluations. It demonstrates that these self-evaluations are malleable and influenced by income changes, contrary to previous assumptions of stability.
The paper offers a new approach to understanding the relationships between income, core self-evaluations, and important career outcomes, like leadership attainment. This study further supports the relevance of socioeconomic status within the workplace.
Key Takeaways:
- How one’s income changes over their lifetime (i.e., income mobility) predicts core aspect of their psychology (e.g., how much control they believe they have over their environments; locus of control) and later life outcomes (including, whether or not one will attain a formal position of leadership).
- Income mobility’s effects tell us more about a person than their average income. So, going from “Rags to Riches” or “Falling from Graces”, itself, seems to matter.
- Income mobility, then, may be a key aspect of one’s identity/personal narrative, which could be explored as part of a leader’s identity development (e.g., CCL’s River of Life exercise, coaching).
