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global economic inequality is at its highest point on record. The pernicious effects of this broad societal trend are striking: Rising inequality is linked to poorer health and well-being across countries, continents, and cultures. The economic and psychological forces that perpetuate inequality continue to be studied, and in this theoretical review, we examine the role of daily experiences of economic inequality—the communication of social class signals between interaction partners—in this process. We theorize that social class signals activate social comparison processes that strengthen group boundaries between the haves and have nots in society.
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