How Income and the Economic Evaluation of Time Affect Who We Socialize With Outside of Work

How Income and the Economic Evaluation of Time Affect Who We Socialize With Outside of Work

By
Jieun Pai, Sanford E. DeVoe, Jeffrey Pfeffer
Organizational Behavior and Human Decision Processes. November
2020, Vol. 161, Pages 158–175

Building on research showing that organizational practices that highlight the monetary value of time can affect decisions about time use, we examined how income and the economic evaluation of time jointly predict decisions about socializing with others who can be instrumentally useful to people (e.g., colleagues). Using a multi-method approach of surveys and experiments, we found that income was a stronger predictor of both the economic value placed upon socializing with colleagues outside of work as well as the propensity to engage in such activities. When the economic value of time was high, individuals weighed the instrumental value of networking more heavily in their decision making about how to allocate time. These findings illustrate how organizational pay practices and the salience of income can influence decisions about daily social interactions outside of work.