The Effect of Income on the Importance of Money: Survey and Experimental Evidence

Sanford E. DeVoe, Jeffrey Pfeffer and Byron Y. Lee
Additional contact information
Sanford E. DeVoe: University of Toronto
Jeffrey Pfeffer: Stanford University
Byron Y. Lee: Renmin University of China

Research Papers from Stanford University, Graduate School of Business

Abstract: The authors investigate how both the amount and source of income affects the importance placed on money using a longitudinal analysis of the British Household Panel Survey and evidence from two laboratory experiments. Larger amounts of money received for labor were associated with individuals placing greater importance on money, but this effect did not hold for money unrelated to work. The longitudinal survey analysis demonstrated these differential effects of the source of income on money's importance while holding constant stable individual differences. The experiments provide evidence that the source of income has a causal effect on the importance of money as well as on the effort expended to earn more money. Even as individual differences in the importance placed on money may affect peoples' income, our results suggests that, depending upon its source, income can also affect the importance people place on money.

Date: 2012-11
New Economics Papers: this item is included in nep-cbe and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://gsbapps.stanford.edu/researchpapers/library/RP2125.pdf
Our link check indicates that this URL is bad, the error code is: 400 Bad Request (https://gsbapps.stanford.edu/researchpapers/library/RP2125.pdf [302 Found]--> https://login.stanford.edu/idp/profile/SAML2/Redirect/SSO?SAMLRequest=fZLLboMwEEV%2FBXkfzCupsAISTRaNlLYo0C66qQxMgiVjU4%2Fp4%2B9LQqomm6x958zcIy%2BRd7Jn2WBbtYOPAdA6351UyE4PCRmMYpqjQKZ4B8hszYrsccsC12O90VbXWhInQwRjhVYrrXDowBRgPkUNL7ttQlpre2SUHrDifY8uWq722jQuNAMtWlFVWoJtXURNj%2ByA5s9FSZz1eIxQ%2FIj9h0h9EOoaIZqejqfshYTz%2FA4aYaC2tCieibNZJ%2BT9Lo4gDhrOQ%2B43cR1CuFhEC6irON7HzcIbY4gDbNQRbRMSeMF85kUzLyz9iM19No%2FeiJOfG98L1Qh1uK2nmkLIHsoyn02dXsHgqc8YIOnyKJmdFpsL7bex%2FM81SW%2BaXdIL%2BrSqZ08jbrPOtRT1j5NJqb9WBriFhPiEptPI9XdIfwE%3D&RelayState=ss%3Amem%3Aa632b440fac7d9cb590a289da2e84842b8763d8640e8da8672ec529232127869)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:2125

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by (workingpapers@econlit.org).