Does income inequality increase status anxiety? Not directly, the role of perceived upward and downward mobility.

Status anxiety theory posits that higher income inequality leads people to attribute more importance to their socioeconomic status and to worry about the position they occupy on the social ladder. We investigated through two experimental studies (N = 1117) the causal effect of economic inequality on status anxiety and whether expected upward and downward mobility mediates this effect. In Study 1, perceived economic inequality indirectly increased status anxiety through lesser expected upward mobility. In Study 2, perceived economic inequality decreased both expected upward and downward mobility, with opposite indirect effects on status anxiety. This suggests that the relationship between inequality and status anxiety is not straightforward, and could implicate the presence of multiple processes working at the same time-whereas lower expected downward mobility could suppress the effect of inequality, lower expected upward mobility could exacerbate it.

Economic Inequality Increases Status Anxiety Through Perceived Contextual Competitiveness.

Status anxiety, the constant concern about individuals' position on the social ladder, negatively affects social cohesion, health, and wellbeing (e.g., chronic stress). Given previous findings showing that status anxiety is associated with economic inequality, we aimed in this research to test this association experimentally. A cross-sectional study (Study 1) was run in order to discard confounding effects of the relationship between perceived economic inequality (PEI) and status anxiety, and to explore the mediating role of a competitive climate (N = 297). Then we predicted that people assigned to a condition of high inequality would perceive more status anxiety in their social context, and they would themselves report higher status anxiety. Thus, in an experimental study (Study 2) PEI was manipulated (N = 200). In Study 1, PEI uniquely predicted status anxiety, and perceived competitiveness mediated the relationship. In Study 2 PEI increased perceived contextual status anxiety, a specific form of perceived competitiveness based on socioeconomic status (SES). Moreover, preliminary evidence of an indirect effect was found from PEI to personal status anxiety, through (higher) perceived contextual status anxiety. These preliminary findings provide experimental evidence for the effects of economic inequality on status anxiety and the mechanism involved. Economic inequality makes people feel that they live in a society where they are constantly concerned and competing with each other for their SES. These results could have important implications as health and wellbeing could be promoted by reducing economic inequalities and the competitive and materialistic environments of our societies.