Long Term Neighborhood Effects of Religious Preferences

Chuhang Yin Geissler

Annals of Economics and Statistics, 2021, issue 142, 251-282

Abstract: Combined with neighborhood effects, homophily preferences can reinforce poverty traps for initially disadvantaged populations. Using a panel of individuals from Glasgow, Scotland with reported religious beliefs, socioeconomic status and residential locations over twenty years, I estimate a residential sorting model where preferences for neighborhood religious composition vary by current income and religious background, which is defined as the largest religious group in childhood neighborhood. Results suggest religious homophily is the strongest for low income individuals with Catholic and non-Christian backgrounds. Homophily preferences are weakest for Protestant Christians and secular individuals. Absence of the heterogeneity in religious preferences would lead to reduced segregation and a 3.8% increase in average neighborhood income for those with Catholic and non-Christian backgrounds at the lowest income quartile. This neighborhood inequality can translate into differences in adult earnings across religious backgrounds through neighborhood effects.

Keywords: Religious Preferences; Residential Sorting; Neighborhood Effects; Inequality. (search for similar items in EconPapers)
JEL-codes: H0 I3 R23 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2021:i:142:p:251-282

DOI: 10.15609/annaeconstat2009.142.0251

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