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The concept of identity has been defined as an internalized psychic system that integrates an individual's inner self and the outer social world into a congruent whole. The integration of a personal self and social outer world has been viewed as a developmental process and one that, according to Erik Erikson, requires the individual to synthesize fragments of childhood identifications into a single structure during late adolescence and early adulthood. Identity formation has long been viewed in this way; however, the notion that individuals synthesize fragments of childhood identifications into a single structure during adolescence may no longer be an adequate model in which to fully understand the development of identity. Many researchers and theorists now contend that traditional theories of identity development do not fully explain the development of an individual's group or social identity such as gender, ethnicity, class, and sexual orientation. A prominent criticism of foundational theories of identity development is that they were constructed based on traditional Eurocentric individualistic culture. Consequently, traditional theories may not aptly apply to women, non-White European racial/ethnic groups, and collectivistic cultures whose family systems, cultural norms, and developmental milestones may be different from traditional Eurocentric cultural patterns. It is at this point that psychologists began looking at elements of personal identity and the sociopolitical and cultural forces that affect identity.

Much of the research examining identity has focused on traits or dynamics that are considered universal for all human beings (e.g., self-esteem, introversion-extraversion, and levels of anxiety) regardless of race, culture, gender, sexual orientation, or class. At this level, researchers and clinicians treat human experiences as being similar, for example, the experiences of aging, coping with life stress, and interpersonal relationships. However, the extent to which any one of these traits and dynamics may be high or low, prominent, amplified, or muted differs as a result of sociodemographic categories such as culture, class, gender, ethnicity, or sexual orientation.

All individuals must merge cognitive, emotional, and social factors to construct one's sense of self. Although the process of integration is similar for many people, Erikson's theory does not account for differences people may experience while integrating multiple identities based on demographic categories (e.g., gender, race, sexual orientation, physical ability). An individual's unique traits and characteristics, family dynamics, cultural and ethnic norms, beliefs and attitudes, and experiences of oppression significantly contribute to the development of one's inner self and social outer world. These factors may either inhibit or facilitate the developmental process of exploration, resolution, and commitment needed for the expression and saliency of one's identity. As the field of psychology has incorporated a broader understanding of identity, many researchers and theorists have come to recognize that individuals are cultural beings and are affected differently by various dimensions of personal identity and contextual factors. The relationship between psychological and socio-cultural forces in individuals' lives has expanded conceptualizations of the manner in which individuals develop awareness and acceptance of themselves in relation to self, others, their place and definition in society, and membership(s) in social groups.

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