The bicausal relation between religion and income

L. Bettendorf and Elbert Dijkgraaf

Applied Economics, 2011, vol. 43, issue 11, 1351-1363

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

Date: 2011
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DOI: 10.1080/00036840802600442

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