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Religion and income: heterogeneity between countries

Author

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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.

Suggested Citation

  • L. Bettendorf & E. Dijkgraaf, 2007. "Religion and income: heterogeneity between countries," Papers on Economics of Religion 07/04, Department of Economic Theory and Economic History of the University of Granada..
  • Handle: RePEc:gra:paoner:07/04
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. Elena Briones Alonso & Lara Cockx & Johan Swinnen, 2017. "Culture and Food Security," LICOS Discussion Papers 39817, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Mario Coccia, 2017. "General purpose technologies in dynamic systems: visual representation and analyses of complex drivers," IRCrES Working Paper 201705, Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    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. Berggren, Niclas & Ljunge, Martin, 2017. "Does Religion Make You Sick? Evidence of a Negative Relationship between Religious Background and Health," Working Paper Series 1173, Research Institute of Industrial Economics.
    6. 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.
    7. 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.
    8. Zotti, Roberto & Speziale, Nino & Barra, Cristian, 2014. "On the causal effect of religion on life satisfaction using a propensity score matching technique," MPRA Paper 60066, University Library of Munich, Germany.
    9. repec:spr:sochwe:v:50:y:2018:i:3:d:10.1007_s00355-017-1093-1 is not listed on IDEAS
    10. 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 University Rotterdam.
    11. Méon, Pierre-Guillaume & Tojerow, Ilan, 2016. "In God We Learn? Religions' Universal Messages, Context-Specific Effects, and Minority Status," IZA Discussion Papers 10077, Institute for the Study of Labor (IZA).
    12. 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, June.
    13. repec:kap:jecgro:v:22:y:2017:i:3:d:10.1007_s10887-017-9142-2 is not listed on IDEAS

    More about this item

    Keywords

    Income; Religious Membership; Religious Participation.;

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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