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

Abstract

The objective of this research is to determine the moderating effects of Love of Money (LOM) on the relationship between socio-economic status (SES) and happiness. This study explores not only the direct relationship between SES and happiness, but also indirect relationships that may exist through life domain satisfaction, such as through job, income and family satisfaction. Additionally, it further studies the moderating roles of LOM on those indirect or mediated relationships. Purposive sampling method was used to collect data from 433 samples drawn from four different target groups with the mix of level of income and LOM. For analysis of data, the structural equation modeling technique was employed. The findings reveal no direct relationship between SES and happiness, but findings did show an indirect, positive relationship between SES and happiness through job, family and income satisfaction. This suggests a multiple mediated relationship be- tween SES and happiness. LOM has a negative effect on happiness as well as on job satisfaction and income satisfaction. In addition, LOM revealed moderating roles on SES- income satisfaction (strengthening) and job satisfaction-happiness (weakening) relation- ships. The results suggest that low LOM people have a sense of contentment because they are more satisfied with their income, no matter how much they earn, compared with the satisfaction of high LOM people. Also, high LOM people undermine job satisfaction as a source of happiness, therefore lowering their overall happiness or life satisfaction.