The Power of Christ Can Pay You: The Effect of Religious Participation on Income in the United States

Abstract

While religious participation may help improve individuals’ economic outcomes through gains in social capital, emphasis on traits that aid in success, and opportunities for networking opportunities, it can also worsen economic outcomes through less concern for acquiring wealth, labor market substitutions with religious activities, and monetary contributions towards religious establishments. This study investigates the effect, if any, of religious participation on income on an individual level, using data from the National Longitudinal Study of Adolescent Health (Add Health). Two measures of religious participation—religious affiliation and attendance at religious services—are analyzed to calculate correlations with 2008 positive income and 2008 employment for individuals age 24-32. OLS, probit, and instrumental variable regressions are used to observe causal effects. The results show that for males and females combined, there is no clear net effect of religious participation on income or employment. When stratifying by gender, however, the results do reveal some evidence that religious participation may positively affect employment for males.