Background Meritocracy is the notion that individuals should be rewarded based on their individual abilities and efforts (e.g., McCoy & Major, 2007). The more people endorse the Protestant work ethic, the more they believe that wealth is due to effort and ability and more money they save (Furnham, 1984). Research Question: Is the association between belief in meritocracy and people’s attitudes towards saving moderated by their income level? High-income individuals are more likely to save money than low-income individuals (Martineau, 1977; Lunt & Livingstone, 1991). High-income individuals are more likely think that money is an indicator of one’s achievements than their low-income counterparts (Tang, 1992). Hypotheses Among higher income people, belief in meritocracy will be associated with placing more importance on saving. Among lower income people, belief in meritocracy will be associated with placing less importance on saving. Study 1 Participants 193 Mturk workers (120 females, 73 males), ages 18-71, M age = 31.44, Median Income = $50, ,000 Family Income Higher Income individuals = $60,001 or more Lower Income individuals = $60,000 or less *Income was not normally distributed, used median split instead of continuous measure. Belief in meritocracy 8 items (Quinn & Crocker, 1999; Jost & Thompson, 2000; Dahlbert, 2001; Lipkus et al., 1996; Major, Gramzow, et al., 2002). α =.841, example items: If people work hard enough, they can be whatever they want to be in life. Advancement in our society is possible for all individuals. Conclusions Belief in meritocracy may be associated with feeling the need to display status, i.e., spending first and saving what is left. Consistent with this, for lower income people, belief in meritocracy is associated with: More spending on non-essential items. Placing less importance on saving. For higher income people, belief in meritocracy is not significantly associated with spending or reported importance of saving. The meritocracy–saving association among lower income people may be due to perceptions of low buying power. When lower income people think they have low buying power, belief in meritocracy is associated with lower importance of saving (may feel they do not have $ to save). When lower income people think they have high buying power, belief in meritocracy is associated with greater importance of saving (may feel have $ available to save). Future Directions Manipulation of people’s belief in meritocracy to establish the causal relationship between meritocracy and saving Recruitment of participants with higher incomes than our current samples to more accurately represent those with high incomes References McCoy, S. K., & Major, B. (2007). Priming meritocracy and the psychological justification of inequality. Journal of Experimental Social Psychology, 43(3), Furnham, A. (1984). Many sides of the coin: The psychology of money usage. Personality and individual Differences, 5(5), Lunt, P. K., & Livingstone, S. M. (1991). Psychological, social and economic determinants of saving: Comparing recurrent and total savings. Journal of Economic Psychology, 12(4), Tang, T. L. P. (1992). The meaning of money revisited. Journal of Organizational Behavior, 13(2), Furnham, A. (1999). The saving and spending habits of young people. Journal of Economic Psychology, 20(6), Contact Information Dependent Variables Importance of saving Adapted 2 items from the Attitudes to Saving and Spending Scale (Furnham, 1999). r =.646 It is important to save. I believe in putting some money aside for a rainy day. Spending on non-essential goods “Normally, how much of your annual income do you devote to each of the following categories/items?” Items considered non-essential goods: Large purchases, travel/vacation, restaurants, technology, entertainment Study 1 Results Income Allocation: Non-essential goods F(5,185) = 5.683, ß = -.176, p =.053 Importance of Saving Money F(5,185) = 3.801, ß =.185, p =.047 Among lower income participants, belief in meritocracy is associated with: Spending more money on non-essential goods Lower perceived importance of saving Contrary to predictions, among higher income participants, belief in meritocracy was not associated with spending behavior and savings beliefs. Are these results due to low perceived buying power among lower income individuals? Study 2 Participants: 229 Mturk workers (136 females, 93 males), M age = 30.58, Median Income = $50,001-60,000 Family Income: Median split (see Study 1). Belief in meritocracy: 8-items (see Study 1). α =.814 Manipulation of buying power Low Buying Power Condition: “Consumers’ dollars are unlikely to stretch as far as many thought they would.” High Buying Power Condition: “Consumers’ dollars are likely to stretch further than many thought they would.” Importance of saving Adapted 7 items from the Attitudes to Saving and Spending Scale (Furnham, 1999). α =.653 Study 2 Results Lower Income Participants F(5,133) = 2.062, ß =.379, p =.002 Higher Income Participants F (5,123) = 1.579, ß = -.198, p =.128 For lower income participants: When primed with low buying power, belief in meritocracy is associated with lower perceived importance of saving. When primed with high buying power, belief in meritocracy is associated with higher perceived importance of saving. For higher income participants, buying power prime and belief in meritocracy are not associated with saving beliefs. Belief in Meritocracy Decreases Importance of Saving Among Lower Income People Mindy Truong and Sarah S. M. Townsend Department of Management and Organization, University of Southern California ß = -.253, p =.039 ß =.179, p =.051 ß = -.216, p =.022 ß =.269, p =.022