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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.

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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    20. Pierre-Guillaume Méon & Ilan Tojerow, 2018. "In God We Learn? The Universal Messages of Religions, their Context-Specific Effects, and the role of Minority Status," Working Papers CEB 16-036, ULB -- Universite Libre de Bruxelles.
    21. Jasmine Mondolo, 2019. "How do informal institutions influence inward FDI? A systematic review," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(1), pages 167-204, April.
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    More about this item

    Keywords

    Income; Religious Membership; Religious Participation.;
    All these keywords.

    JEL classification:

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

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