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Capital-labor substitution in the production of religious goods

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  • Petach, Luke

Abstract

This paper provides evidence of capital-labor substitution in the production of religious goods. Using data on church attendance, tithing, and income from the U.S. Congregational Life Survey, I show that (A) the labor input to religious production (as measured by attendance at formal church services) declines as income increases, (B) the labor time equivalent of monetary giving increases as income increases, and (C) the increase in the labor time equivalent of monetary giving more than offsets the decline in formal church attendance, such that total household resources allocated to religious production increase with income.

Suggested Citation

  • Petach, Luke, 2023. "Capital-labor substitution in the production of religious goods," Economics Letters, Elsevier, vol. 232(C).
    • Handle: RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003695
    DOI: 10.1016/j.econlet.2023.111344
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    References listed on IDEAS

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    1. McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
    2. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
    3. Azzi, Corry & Ehrenberg, Ronald G, 1975. "Household Allocation of Time and Church Attendance," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 27-56, February.
    4. Sriya Iyer, 2016. "The New Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 395-441, June.
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    More about this item

    Keywords

    Religion; Capital-labor substitution; Religious production;
    All these keywords.

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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