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Religiosity and Long-Run Productivity Growth

Author

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  • Dierk Herzer

    (Department of Economics, Helmut-Schmidt-University Hamburg, Holstenhofweg 85, 22043 Hamburg, Germany)

  • Holger Strulik

    (Department of Economics, University of Göttingen, Platz der Göttinger Sieben 3, 37073 Göttingen, Germany)

Abstract

In this paper, we show, using a panel of developed countries, that there is a long-run negative association between church attendance and total factor productivity (TFP) with predictive causality running from declining church attendance to increasing factor productivity. According to our preferred estimate, about 18% of the increase in TFP from 1950 to 1990 can be motivated by declining religiosity. In order to explain this phenomenon, we integrate into standard R&D-based growth theory a micro-foundation of individual cognitive style, which is either intuitive-believing or reflective-analytical. Under the assumption that R&D productivity is positively influenced by a reflective-analytical cognitive style, we find that secularisation leads to an increasing labour share in R&D and gradually increasing productivity growth. We use these insights to reflect on the trends in religiosity and R&D-based growth in the very long run, from Enlightenment to the present day.

Suggested Citation

  • Dierk Herzer & Holger Strulik, 2020. "Religiosity and Long-Run Productivity Growth," Journal of Economics, Management and Religion (JEMAR), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-40, July.
    • Handle: RePEc:wsi:jemarx:v:01:y:2020:i:01:n:s2737436x20500016
    DOI: 10.1142/S2737436X20500016
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    Cited by:

    1. Sascha O. Becker & Jared Rubin & Ludger Woessmann, 2023. "Religion and Growth," Monash Economics Working Papers 2023-15, Monash University, Department of Economics.

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    More about this item

    Keywords

    Factor productivity; cognitive style; R&D-based growth; religiosity; church attendance;
    All these keywords.

    JEL classification:

    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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