Childhood economic status predicting later income: the role of networking ability and encouragement of participation

Drawing from a social capital perspective, this study examines the psychological mechanism and boundary conditions of the relationship between individuals’ childhood economic status (CES) and later income. Specifically, we tested the mediating role of networking ability and the moderating role of encouragement of participation in this relationship. With a sample of 3635 employees in China and the use of multistage stratified sampling, the results indicate that networking ability mediates the CES and later income relationship. Moreover, encouragement of participation acts as a necessary condition in the relationship between networking ability and later income. Specifically, when encouragement of participation was high, increased networking ability was associated with increased later income. When encouragement of participation was low, the positive relationship between employees’ networking ability and later income was no longer significant. Finally, the indirect effect of CES on later income mediated by networking ability was stronger for organizations with a higher level of encouragement of participation. Findings and future directions in the theory and practice of career development are discussed.