The Dunning-Kruger effect by definition means the person cannot recognize their own incompetence/competence, and also overestimate their abilities. So, yes, it does affect a person’s self-evaluation by making it seem better than it really is.
If you don’t understand the Dunning-Kruger effect you’d be less likely to understand that you lack the competence to identify it in other people.
Or if you correctly collect data on self-evaluations but screw up when plotting it out, you may jump to the wrong conclusions and not notice because you believe you’re too competent to make a mistake (so you don’t double-check it, don’t verify with other people, etc.).
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