The Bicausal Relation between Religion and Income

Tinbergen Institute Discussion Paper No. 05-105/2

31 Pages Posted: 28 Nov 2005

See all articles by Leon J.H. Bettendorf

Leon J.H. Bettendorf

Erasmus University Rotterdam (EUR)

Elbert Dijkgraaf

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus University Rotterdam, SEOR-ECRi

Date Written: November 11, 2005

Abstract

In this paper the relation between religion and income is investigated using a micro-dataset for the Netherlands. Religiosity is measured by religious membership and by participation. Instead of estimating separately a religion and an income equation, joint regression is preferred since this generally yields more efficient estimates. Following the single equation approach, both religious measures are found to decrease significantly income and income is found to affect negatively religion. However, these cross-effects get insignificant once the equations are simultaneously estimated. In contrast, the effects of socio-economic characteristics on religion and income hardly differ between both approaches.

Keywords: Income, Religious Membership, Religious Participation

JEL Classification: Z12, H31

Suggested Citation

Bettendorf, Leon J.H. and Dijkgraaf, Elbert, The Bicausal Relation between Religion and Income (November 11, 2005). Tinbergen Institute Discussion Paper No. 05-105/2, Available at SSRN: https://ssrn.com/abstract=856004 or http://dx.doi.org/10.2139/ssrn.856004

Leon J.H. Bettendorf

Erasmus University Rotterdam (EUR) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 4081808 (Phone)

Elbert Dijkgraaf (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Erasmus University Rotterdam, SEOR-ECRi ( email )

P.O. Box 1738
H 7-34
Rotterdam, 3000 DR
Netherlands
+31 10 4082590 (Phone)
+31 10 4089650 (Fax)

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