60 research outputs found
Diversity and Crowd-out: A Theory of Cold-Glow Giving
No full textResearch has repeatedly shown that altruism is lower in diverse communities. Can this phenomenon be counteracted by government intervention? To answer this question, this paper introduces diversity to the canonical model of "warm glow" giving. Diversity may have two effects on incentives: it may attenuate individuals' altruistic preferences for public goods, and it may "cool off" the warm glow that individuals get from voluntarism. Either of these effects leads to diverse communities having lower levels of public goods, consistent with prior research. However, these effects have opposite implications for the efficacy of government intervention. I then empirically investigate whether government intervention is more effective in diverse communities. For identification, I exploit the Supreme Court-mandated 1991 expansion of the SSI program. Using a new dataset of United Methodist churches from 1984 to 2000, the results show that the expansion of SSI crowded-out charitable spending by churches. The crowd-out estimate for the average church is reasonably large, but this masks significant differences in crowd-out between communities. Crowd-out occurred almost entirely in relatively homogeneous communities; there is only modest evidence of crowd-out in racially diverse communities. Thus diverse communities, while having the lowest levels of altruism, are in this instance the most amenable to government intervention.
The Church vs the Mall: What Happens When Religion Faces Increased Secular Competition?
No full textRecently economists have begun to consider the causes and consequences of religious participation. An unanswered question in this literature is the effect upon individuals of changes in the opportunity cost of religious participation. In this paper we identify a policy-driven change in the opportunity cost of religious participation based on state laws that prohibit retail activity on Sunday, known as %u201Cblue laws.%u201D Many states have repealed these laws in recent years, raising the opportunity cost of religious participation. We construct a model which predicts, under fairly general conditions, that allowing retail activity on Sundays will lower attendance levels but may increase or decrease religious donations. We then use a variety of datasets to show that when a state repeals its blue laws religious attendance falls, and that church donations and spending fall as well. These results do not seem to be driven by declines in religiosity prior to the law change, nor do we see comparable declines in membership or giving to nonreligious organizations after a state repeals its laws. We then assess the effects of changes in these laws on drinking and drug use behavior in the NLSY. We find that repealing blue laws leads to an increase in drinking and drug use, and that this increase is found only among the initially religious individuals who were affected by the blue laws. The effect is economically significant; for example, the gap in heavy drinking between religious and non religious individuals falls by about half after the laws are repealed.
Faith-Based Charity and Crowd Out during the Great Depression
No full textInterest in religious organizations as providers of social services has increased dramatically in recent years. Churches in the U.S. were a crucial provider of social services through the early part of the twentieth century, but their role shrank dramatically with the expansion in government spending under the New Deal. In this paper, we investigate the extent to which the New Deal crowded out church charitable spending in the 1930s. We do so using a new nationwide data set of charitable spending for six large Christian denominations, matched to data on local New Deal spending. We instrument for New Deal spending using measures of the political strength of a state's congressional delegation, and confirm our findings using a different instrument based on institutional constraints on state relief spending. With both instruments we find that higher government spending leads to lower church charitable activity. Crowd-out was small as a share of total New Deal spending (3%), but large as a share of church spending: our estimates suggest that church spending fell by 30% in response to the New Deal, and that government relief spending can explain virtually all of the decline in charitable church activity observed between 1933 and 1939.
Does Church Attendance Cause People to Vote? Using Blue Laws' Repeal to Estimate the Effect of Religiosity on Voter Turnout
No full textRegular church attendance is strongly associated with a higher probability of voting. It is an open question as to whether this association, which has been confirmed in numerous surveys, is causal. We use the repeal of the laws restricting Sunday retail activity ("Blue laws") to measure the effects of church-going on political participation. The repeal of Blue Laws caused a 5 percent decrease in church attendance. We measure the effect of Blue Laws' repeal on political participation and find that following the repeal turnout falls by approximately 1 percentage point. This turnout decline, which is statistically significant and fairly robust across model specifications, is consistent with the large effect of church attendance on turnout reported in the literature, and suggests that church attendance may have significant causal influence on voter turnout.
Substitution and Stigma: Evidence on Religious Competition from the Catholic Sex-Abuse Scandal
No full textSeason of birth and later outcomes: Old questions, new answers
No full textResearch has found that season of birth is associated with later health and professional outcomes; what drives this association remains unclear. We consider a new explanation—that children born in different seasons have mothers with different socioeconomic characteristics. We document large seasonal changes in the characteristics of women giving birth in the United States; these changes explain nearly half of the relationship between season of birth and adult outcomes. Our findings suggest that using season of birth as an instrumental variable may produce inconsistent estimates. Finally, seasonality in maternal characteristics is partly due to weather differentially affecting fertility across socioeconomic groups. 1 Research across the social and natural sciences has consistently found that the month of a child’s birth is associated with later outcomes involving health, educational attainment, earnings and mortality. Much of this work shows that on average individuals born in the winter have worse outcomes (less schooling, lower wages) than other individuals. What drives this association remains unclear. Some prior work has speculated that this association may be drive
Economics, religion, and culture: A brief introduction
No full textIn this introduction we will avoid laboring over a definition of the “Economics of Religion & Culture,” but this will not stop us from arguing that it is a burgeoning area of research. Work focusing on religious practice and related cultural issues dates back at least to Adam Smith, but until the 1990s there had been little published by mainstream economists in this area. Recently, however, a variety of subfields in economics have taken up work here.\ud
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The JEL classification code system includes a designation for papers on religion (Z12), and the American Economic Association (via EconLit) keeps track of the number of journal articles published under this section of the code. In Fig. 1, we show the number of papers published in this area in recent years. As the picture shows, there has been a sixfold increase in the total number of papers published in this area over the past decade, including a number of truly excellent works. Some of the topics considered here include: studies of how public policy affects attitudes and beliefs, studies on the lasting economic implications of historic cultural institutions, work on religious schooling versus secular schooling, investigations of faith-based social-service provision, work on violence and religious extremism, analyses of religious donations, and research on the connection between beliefs (such as religious beliefs) and behaviors
Race and Charitable Church Activity
No full textThe availability of public funding for charitable church activity has increased dramatically in the past decade. A key dispute over this increased availability is whether congregations' propensity to provide charitable services depends upon the racial composition of the community served. This paper uses three different congregation-level datasets to investigate how race affects charitable church activity. In all three datasets there is evidence that all-white congregations become less charitably active as the share of black residents in the local community grows. This response is found only when looking at charitable activities, not when looking at other types of church activity. Additionally, all-white congregations favorably disposed towards receiving government funding do not respond differently to black residents than do congregations which are not all-white.
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