Two Sides of a Medal: the Changing Relationship between Religious Diversity and Religiosity

Matthias Opfinger

Review of Social Economy, 2014, vol. 72, issue 4, 523-548

Abstract: Religious Market Theory assigns basic market principles to the market for religion. The derived supply-side model proposes that religiosity is higher on a competitive market, characterized by high religious diversity. Churches will provide higher quality goods compared to monopolistic churches. The demand-side model, originating from the Secularization Hypothesis, suggests that the establishment of new churches casts doubt on the existing religion, which reduces overall religiosity. I find a negative linear relationship between religious diversity and religiosity which supports the demand-side model. However, high levels of income and democracy mitigate this effect. For high levels of education and immigration, the relationship even turns to positive. The demand-side model seems to dominate in less-developed countries. This effect appears to vanish in the most industrialized countries.

Date: 2014
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Working Paper: Two Sides of a Medal: The Changing Relationship between Religious Diversity and Religiosity (2013)
Working Paper: Two Sides of a Medal: The Changing Relationship between Religious Diversity and Religiosity (2013)
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DOI: 10.1080/00346764.2014.958900

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