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Religion and Income

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  • L. Bettendorf

    ()
    (Erasmus University Rotterdam)

  • E. Dijkgraaf

    ()
    (SEOR-ECRi, Erasmus University Rotterdam)

Abstract

This paper tests whether the behaviour of households in different countries is homogeneous with respect to the influence of religion on income. The violation of the homogeneity assumption would have two consequences. First, results based on country studies might not be applicable to other countries. Second, one should be careful when pooling cross-country data in this type of research. Data at household level of the European and World Values Survey are pooled for 25 Western countries. We estimate simultaneously an income and a religion equation to correct for the endogeneity of religiosity. We find that estimation outcomes are different between low and high-income countries. Whereas church membership is found to have a positive effect on income for high-income countries, this effect is negative for low-income countries. This result is robust to denominational distribution, participation effects and alternative measures of religiosity.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-014/3.

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Date of creation: 29 Jan 2008
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Handle: RePEc:dgr:uvatin:20080014

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Web page: http://www.tinbergen.nl

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Keywords: Income; Religious Membership; Religious Participation;

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  1. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
  2. John Sawkins & Paul Seaman & Hector Williams, 1997. "Church attendance in Great Britain: An ordered logit approach," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 125-134.
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