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Religion and income: heterogeneity between countries

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  • L. Bettendorf

    (Erasmus University)

  • E. Dijkgraaf

    ()
    (Erasmus University)

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 Department of Economic Theory and Economic History of the University of Granada. in its series Papers on Economics of Religion with number 07/04.

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Length: 39 pages
Date of creation: 19 Dec 2007
Date of revision:
Handle: RePEc:gra:paoner:07/04

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Keywords: Income; Religious Membership; Religious Participation.;

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Cited by:
  1. Cornelissen, Thomas & Jirjahn, Uwe, 2012. "September 11th and the earnings of Muslims in Germany—The moderating role of education and firm size," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 490-504.
  2. van Hoorn, André & Maseland, Robbert, 2013. "Does a Protestant work ethic exist? Evidence from the well-being effect of unemployment," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 1-12.
  3. Cornelissen, Thomas & Jirjahn, Uwe, 2012. "Religion and earnings: Is it good to be an atheist with religious parental background?," Economics Letters, Elsevier, vol. 117(3), pages 905-908.
  4. Searing, Elizabeth A.M., 2013. "Love thy neighbor? Recessions and interpersonal trust in Latin America," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 68-79.
  5. Rietveld, C.A. & van Burg, E., 2013. "Religious beliefs and entrepreneurship among Dutch protestants," ERIM Report Series Research in Management ERS-2013-015-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  6. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - German National Library of Economics, number 37141.

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