Dignity is defined as self-worth from your own perspective. Typically, the ego makes up certain rules about what it takes to be worthy or not. Worthy of what? Probably love, happiness, or peace. We often subconsciously frame this issue as "In order for me to be happy, I must meet these certain criteria so that other people will love me." It's ultimately a mechanism of survival. Of course, dignity can surface as fear when we're making changes to our life because we're stepping into the unknown and that might cause you to break some of the rules that are your self-defined prerequisites for happiness. So in that way, dignity is an ego defense mechanism because it is promoting homeostasis.