The Relationship Between Financial Scarcity and Perceived Control Across 51 Societies

When people lack needed financial resources, they can experience financial scarcity. In a cross-societal study conducted across 51 societies (N = 12,779), we examined whether financial scarcity threatens perceived control over one’s life. Moreover, in line with Compensatory Control Theory (CCT), we tested whether formal institutions buffer against the control threat of financial scarcity and explored whether several cultural values serve a similar protective function. Results revealed an overall negative association between financial scarcity and perceived control that varied significantly across societies. Unexpectedly, the negative relationship was weaker in societies with lower welfare provisions, weaker institutions, and poorer labor conditions. Exploratory analyses also indicated attenuation effects in societies with lower economic development and social capital, tighter cultural norms, and stronger traditional and collectivist values. This suggests that cultural values may be more effective than formal institutions in buffering individuals against the psychological consequences of financial scarcity.