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Self-esteem refers to how one would evaluate his or her self-worth, which is derived from one's own experiences, beliefs, and self-perception. Sigmund Freud breaks self-esteem into three components: one's aspirations for oneself, one's aspirations that are corroborated by actual experience, and one's loving and being loved by others. Being loved by others can be falsified when people alter their true identities in order to be more desired and approved by society. One's own self-esteem can be falsified because those with high self-esteem tend to overestimate their own abilities and traits, and those with low self-esteem tend to more accurately predict their own abilities. Self-esteem in this case functions as a form of self-lying in order to increase feelings of accomplishment and satisfaction.

Until recently, it was believed that self-esteem was a consequence of life outcomes, including job satisfaction, salary information, relationship outcomes, personal health, and depression. More recent research indicates that life outcomes do not have direct effects on self-esteem. Conversely, self-esteem does seem to predict life outcomes. Even though the effects are often small, self-esteem affects relationships, job satisfaction, and health. However, self-esteem has not been found to be related to occupational status.

Taken across outcomes, self-esteem plays a large role in overall life consequences. Those with higher self-esteem tend to be more healthy and satisfied with multiple aspects of their lives. Similarly, those with lower self-esteem tend to be less healthy and less satisfied overall.

Defensive Self-Esteem

When individuals have high self-esteem combined with a high need for approval, it has been suggested that they are high in defensive self-esteem. Defensive self-esteem occurs when an individual falsifies his or her behaviors to avoid criticism, hostility, and unfavorable opinions about themselves. In effect, they report high levels of self-esteem targeted on a version of their self that is manufactured to obtain the approval of others. Two underlying factors of socially desirable responding have been found to affect defensive self-esteem: impression management and self-deception.

Impression management occurs when individuals are fully aware that he or she is changing their own behaviors in order to be approved. Most people utilize impression management, such as in the job interview process and on social networking sites, in order to appear more socially acceptable. Having control over what others see and hear are only two aspects of making an impression. Social media makes it easier to mask one's personality, focusing on one aspect instead of personality in its entirety. For example, one could focus solely on philanthropy, making the individual appear to be more generous, but no other aspect of his or her personality would be noted. Impression management also includes having more control over self-presentational behavior.

Self-deception is said to occur when an individual simultaneously and unknowingly holds two opposing beliefs regarding his or her behaviors and feelings of self-worth. Self-deception has been suggested as a response to self-confrontation, and individuals may or may not elicit contradictory beliefs about themselves during self-report measures. As such, self-deception can be defined as an unconscious bias that protects an individual's self-esteem against psychological threats of being inadequate, incapable, or undesirable. When confronted with information regarding themselves that would threaten their self-esteem, they convince themselves this information is not a true reflection of themselves.

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