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The bicausal relation between religion and income

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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.

Document Type: Research Article


Affiliations: 1: Erasmus University (H 8-12), DR Rotterdam, The Netherlands 2: SEOR, Erasmus School of Economics, Erasmus University (H 7-34), DR Rotterdam, The Netherlands

Publication date: April 1, 2011

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