The moderating effect of love money on the relationship between socioeconomic status and happiness

Abstract

The objective of this research is to find the moderating effects of love of money (LOM) on the relationship between socioeconomic status (SES) and happiness. In particular, this study explores the relationship not only directly from SES to happiness, but also indirectly through life domains’ satisfaction, i.e. job, income and family satisfaction. Additionally, it further studies the moderating roles of LOM on those indirect or mediated relationships.

Data were purposive sampling method collecting 433 samplers from four different target groups which were selected with the mix of high- and low- income as well as high- and low- LOM groups. The structural equation modelling technique was employed. Our finding shows that there is no direct relationship found on SES and happiness, however, SES indirectly and positively relates to happiness through job, family and income satisfactions. This suggests a multiple mediated relationship between SES and happiness. LOM has a negative effect on happiness as well as on job satisfaction and income satisfaction.

In addition, LOM reveals moderating roles on SES-income satisfaction (strengthening) and job satisfaction-happiness (weakening) relationships. The results suggest that low LOM people has a mind of contentment because they can be more satisfied with their income no matter how much they have comparing with high LOM people. On the other hand, high LOM people undermines job satisfaction as a source of happiness, therefore lowering their overall happiness or life satisfaction.