Religious service attendance and consumer financial outcomes: Evidence from a longitudinal survey
DOI:
https://doi.org/10.18559/ebr.2024.4.1225Keywords:
religious service attendance , savings, debt, financial satisfaction, social contactsAbstract
Previous literature has pointed to strong links between religion and economic outcomes. However, little is known about how individual consumers ’ religiosity is related to their financial management outcomes. Using longitudinal data from a national representative survey of households in Poland (more than 90% of believers declaring Roman Catholic religious denomination), we examine the associations between religious service attendance (RSA) and three subsequent consumer financial outcomes: savings, debt, and financial satisfaction. Social contacts, general trust, and risk tolerance have been tested to mediate these associations. The results indicate that RSA is prospectively associated with all three consumer financial outcomes: savings (positive), debt (negative), and financial satisfaction (positive). Only one mediation effect was found: the association between RSA and savings is mediated by social contacts. This implies that religiosity, as measured by RSA, is prospectively associated with financial outcomes, and social
contacts have some potential to mediate the process.
JEL Classification
Consumer Economics: Empirical Analysis (D12)
Household Saving • Personal Finance (D14)
Religion (Z12)
Downloads
References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of moderation and mediation in strategic management research. Organizational Research Methods, 20(4), 665–685. https://doi.org/10.1177/1094428115627498
View in Google Scholar
Akerlof, G. A., & Kranton, R. E. (2000). Economics and identity. Quarterly Journal of Economics, 115(3), 715–753. https://doi.org/10.1162/003355300554881
View in Google Scholar
Almenberg, J., Lusardi, A., Säve-Söderbergh, J., & Vestman, R. (2021). Attitudes towards debt and debt behavior. Scandinavian Journal of Economics, 123(3), 780– 809. https://doi.org/10.1111/sjoe.12419
View in Google Scholar
Arruñada, B. (2010). Protestants and Catholics: Similar work ethic, different social ethic. The Economic Journal, 120(547), 890–918. https://doi.org/10.1111/j.1468-0297.2009.02325.x
View in Google Scholar
Baele, L., Farooq, M., & Ongena, S. (2014). Of religion and redemption: Evidence from default on Islamic loans. Journal of Banking and Finance, 44, 141–159. https://doi.org/10.1016/j.jbankfin.2014.03.005
View in Google Scholar
Baidoo, S. T., & Akoto, L. (2019). Does trust in financial institutions drive formal saving? Empirical evidence from Ghana. International Social Science Journal, 69(231), 63–78. https://doi.org/10.1111/issj.12200
View in Google Scholar
Barrafrem, K., Tinghög, G., & Västfjäll, D. (2021). Trust in the government increases financial well-being and general well-being during COVID-19. Journal of Behavioral and Experimental Finance, 31, 100514. https://doi.org/10.1016/j.jbef.2021.100514
View in Google Scholar
Barro, R. J., & McCleary, R. M. (2003). Religion and economic growth across countries. American Sociological Review, 68(5), 760–781. https://doi.org/10.2307/1519761
View in Google Scholar
Benjamin, D. J., Choi, J. J., & Fisher, G. (2016). Religious identity and economic behavior. Review of Economics and Statistics, 98(4), 617–637. https://doi.org/10.1162/REST_a_00586
View in Google Scholar
Berggren, N., & Bjørnskov, C. (2011). Is the importance of religion in daily life related to social trust? Cross-country and cross-state comparisons. Journal of Economic Behavior & Organization, 80(3), 459–480. https://doi.org/10.1016/j.jebo.2011.05.002
View in Google Scholar
Blaine, B. E., Trivedi, P., & Eshleman, A. (1998). Religious belief and the self-concept: Evaluating the implications for psychological adjustment. Personality and Social Psychology Bulletin, 24(10), 1040–1052. https://doi.org/10.1177/01461672982410002
View in Google Scholar
Bommier, A., & Le Grand, F. (2018). Risk aversion and precautionary savings in dynamic settings. Management Science, 65(3), 955–1453. https://doi.org/10.1287/mnsc.2017.2959
View in Google Scholar
Brown, J. R., Ivkowić, Z., Smith, P. A., & Weisbenner, S. (2008). Neighbors matter: Causal community effects and stock market participation. Journal of Finance, 63(3), 1509–1531. https://doi.org/10.1111/j.1540-6261.2008.01364.x
View in Google Scholar
Brown, S., Garino, G., & Taylor, K. (2012). Household debt and attitudes toward risk. The Review of Income and Wealth, 59(2), 283–304. https://doi.org/10.1111/j.1475-4991.2012.00506.x
View in Google Scholar
Brown, S., & Gray, D. (2016). Household finances and well-being in Australia: An empirical analysis of comparison effects. Journal of Economic Psychology, 53, 17–36. https://doi.org/10.1016/j.joep.2015.12.006
View in Google Scholar
Bryan, G., Choi, J. J., & Karlan, D. (2021). Randomizing religion: The impact of Protestant evangelism on economic outcomes. The Quarterly Journal of Economics, 136(1), 293–380. https://doi.org/10.1093/qje/qjaa023
View in Google Scholar
Centrum Badania Opinii Publicznej. (2013). Osoby niewierzące w Polsce – kim są oraz jakie uznają normy i wartości? https://www.cbos.pl/SPISKOM.POL/2013/K_134_13.PDF
View in Google Scholar
Chen, H., Huang, H. H., Lobo, G. J., & Wang, C. (2016). Religiosity and the cost of debt. Journal of Banking and Finance, 70, 70–85. https://doi.org/10.1016/j.jbank-fin.2016.06.005
View in Google Scholar
Chunping, Z., Li, P., & Lingwei, S. (2016). Do religious beliefs affect borrowing behavior? Evidence from Chinese households. Review of Economics of the Household, 14, 989–1005. https://doi.org/10.1007/s11150-016-9324-2
View in Google Scholar
Cwynar, A., Cwynar, W., Wais, K., & Parda, R. (2017). Personal loan companies in Poland: Does empirical evidence justify regulatory transition? Prague Economic Papers, 26(4), 377–396. https://doi.org/10.18267/j.pep.627
View in Google Scholar
Cwynar, A., Cwynar, W., Kowerski, M., Filipek, K., & Szuba, P. (2020). Debt literacy and debt advice-seeking behaviour among Facebook users: The role of social net- works. Baltic Journal of Economics, 20(1), 1–33. https://doi.org/10.1080/1406099X.2019.1693142
View in Google Scholar
Czapiński, J., & Panek, T. (2015). Social diagnosis. Objective and subjective quality of life in Poland. Contemporary Economics, 9(4), 1–528.
View in Google Scholar
DeHaven, M. J., Hunter, I. B., Wilder, L., Walton, J. W., & Berry, J. (2004). Health programs in faith-based organizations: Are they effective? American Journal of Public Health, 94(6), 1030–1036. https://doi.org/10.2105/ajph.94.6.1030
View in Google Scholar
Duflo, E., & Saez, E. (2003). The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment. Quarterly Journal of Economics, 118(3), 815–842. https://doi.org/10.1162/00335530360698432
View in Google Scholar
Eeckhoudt, L., Gollier, C., & Schlesinger, H. (2005). Economic and financial decisions under risk. Princeton University Press. https://doi.org/10.2307/j.ctvcm4j15
View in Google Scholar
EVS. (2022). EVS trend file 1981–2017. GESIS, Cologne. ZA7503 Data file Version 3.0.0. https://doi.org/10.4232/1.14021
View in Google Scholar
Friedman, B. M. (2011). Economics: A moral inquiry with religious origins. American
View in Google Scholar
Economic Review, 101(3), 166–170. https://doi.org/10.1257/aer.101.3.166
View in Google Scholar
Georgarakos, D., & Pasini, G. (2011). Trust, sociability, and stock market participation. Review of Finance, 15(4), 693–725. https://doi.org/10.1093/rof/rfr028
View in Google Scholar
Graeber, D. (2011). Debt. The first 5,000 years. Melville House Publishing.
View in Google Scholar
Gruber, J. H. (2005). Religious market structure, religious participation, and outcomes: Is religion good for you? The B.E. Journal of Economic Analysis & Policy, 5(1). https://doi.org/doi:10.1515/1538-0637.1454
View in Google Scholar
Guiso, L., Sapienza, P., & Zingales, L. (2003). People’s opium? Religion and economic attitudes. Journal of Monetary Economics, 50(1), 225–282. https://doi.org/10.1016/S0304-3932(02)00202-7
View in Google Scholar
GUS (Główny Urząd Statystyczny). (2022). Ludność Polski według grup wyznań i rodzaju deklarowanej przynależności wyznaniowej w 2021 r. Tablice z ostatecznymi danymi w zakresie przynależności narodowo-etnicznej, języka używanego w domu oraz przynależności do wyznania religijnego. https://stat.gov.pl/spisy-powszechne/nsp-2021/nsp-2021-wyniki-ostateczne/tablice-z-ostatecznymi-danymi-w-zakresie-przynaleznosci-narodowo-etnicznej-jezyka-uzywane-go-w-domu-oraz-przynaleznosci-do-wyznania-religijnego,10,1.html
View in Google Scholar
Hansen, T., Slagsvold, B., & Moum, T. (2008). Financial satisfaction in old age: A satisfaction paradox or a result of accumulated wealth? Social Indicators Research, 89(2), 323–347. https://doi.org/10.1007/s11205-007-9234-z
View in Google Scholar
He, W., & Hu, M. (Rong). (2016). Religion and bank loan terms. Journal of Banking and Finance, 64, 205–215. https://doi.org/10.1016/j.jbankfin.2015.12.005
View in Google Scholar
Hilary, G., & Hui, K. W. (2009). Does religion matter in corporate decision making in America? Journal of Financial Economics, 93(3), 455–473. https://doi.org/10.1016/j.jfineco.2008.10.001
View in Google Scholar
Hong, H., Kubik, J. D., & Stein, J. C. (2004). Social interaction and stock-market participation. Journal of Finance, 59(1), 137–163. https://doi.org/10.1111/j.1540-6261.2004.00629.x
View in Google Scholar
Iannaccone, L. R. (1998). Introduction to the economics of religion. Journal of Economic Literature, 36(3), 1465–1495.
View in Google Scholar
Ida, T., & Goto, R. (2009). Simultaneous measurement of time and risk preferences: Stated preference discrete choice modeling analysis depending on smoking behav- ior. International Economic Review, 50(4), 1169–1182. https://doi.org/10.1111/j.1468-2354.2009.00564.x
View in Google Scholar
Ipsos. (2022). Interpersonal trust across the world. A 30-country global advisor survey. https://www.ipsos.com/sites/default/files/ct/news/documents/2022-03/GlobalAdvisor-InterpersonalTrust2022-GraphicReport_1.pdf
View in Google Scholar
Iyer, S. (2016). The new economics of religion. Journal of Economic Literature, 54(2), 395–441. https://doi.org/10.1257/jel.54.2.395
View in Google Scholar
Joo, S. H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50. https://doi.org/10.1023/B:JEEI.0000016722.37994.9f
View in Google Scholar
Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and financial behavior, and if so, when? The World Bank Economic Review, 31(3), 611–630. https://doi.org/10.1093/wber/lhx018
View in Google Scholar
Keister, L. A. (2003). Religion and wealth: The role of religious affiliation and participation in early adult asset accumulation. Social Forces, 82(1), 175–207. https://doi.org/10.1353/sof.2003.0094
View in Google Scholar
Keister, L. A. (2007). Upward wealth mobility: Exploring the Roman Catholic advantage. Social Forces, 85(3), 1195–1225. https://doi.org/10.1353/sof.2007.0044
View in Google Scholar
Keister, L. A. (2008). Conservative protestants and wealth: How religion perpetuates asset poverty. American Journal of Sociology, 113(5), 1237–1271. https://doi.org/10.1086/525506
View in Google Scholar
Keister, L. A. (2012). Religion and wealth across generations. In L. A. Keister, J. Mccarthy & R. Finke (Eds.), Religion, work and inequality (vol. 23, pp. 131–150). Emerald Group Publishing Limited. https://doi.org/10.1108/S0277-2833(2012)0000023009
View in Google Scholar
Khwaja, A., Sloan, F., & Salm, M. (2006). Evidence on preferences and subjective beliefs of risk takers: The case of smoker. International Journal of Industrial Organization, 24(4), 667–682. https://doi.org/10.1016/j.ijindorg.2005.10.001
View in Google Scholar
Kim, H., Kim, K. T., & Han, S. H. (2021). Religious differences and households’ in-vestment decisions. Journal of Financial Research, 44(4), 753–788. https://doi.org/10.1111/jfir.12260
View in Google Scholar
Kirchmaier, I., Prufer, J., & Trautmann, S. T. (2018). Religion, moral attitudes and economic behavior. Journal of Economic Behavior and Organization, 148, 282–300. https://doi.org/10.1016/j.jebo.2018.02.022
View in Google Scholar
Kose, T., & Cinar, K. (2024). A global assessment of the relationship between religiosity and financial satisfaction. Social Science Journal, 61(2), 347–367. https://doi.org/10.1080/03623319.2020.1808769
View in Google Scholar
León, A. K., & Pfeifer, C. (2017). Religious activity, risk-taking preferences and financial behaviour: Empirical evidence from German survey data. Journal of Behavioral and Experimental Economics, 69, 99–107. https://doi.org/10.1016/j.socec.2017.05.005
View in Google Scholar
Liu, S.-H., Ulbricht, C. M., Chrysanthopoulou, S. A., & Lapane, K. L. (2016). Implementation and reporting of causal mediation analysis in 2015: A system- atic review in epidemiological studies. BMC Research Notes, 9, 354. https://doi.org/10.1186/s13104-016-2163-7
View in Google Scholar
Miller, A. S. (2000). Going to hell in Asia: The relationship between risk and religion in a cross cultural setting. Review of Religious Research, 42(1), 5–18. https://doi.org/10.2307/3512141
View in Google Scholar
Minton, E., Johnson, K. A., Vizcaino, M., & Wharton, C. (2020). Is it godly to waste food? How understanding consumers’ religion can help reduce consumer food waste. Journal of Consumer Affairs, 54(4), 1246–1269. https://doi.org/10.1111/joca.12328
View in Google Scholar
Noussair, C. N., Trautmann, S. T., van de Kuilen, G., & Vellekoop, N. (2013). Risk aversion and religion. Journal of Risk and Uncertainty, 47(2), 165–183. https://doi.org/10.1007/s11166-013-9174-8
View in Google Scholar
Pawlikowski, J., Białowolski, P., Wȩziak-Białowolska, D., & Vanderweele, T. J. (2019). Religious service attendance, health behaviors and well-being—an outcome-wide longitudinal analysis. European Journal of Public Health, 29(6), 1177–1183. https://doi.org/10.1093/EURPUB/CKZ075
View in Google Scholar
Petkov, I., Schiantarelli, F., & Giavazzi, F. (2014). Culture: Persistence and evolution. Centre for Economic Policy Research. https://cepr.org/voxeu/columns/culture-per-sistence-and-evolution
View in Google Scholar
Pew Research Center. (2017). Religijność i przynależność narodowa w Europie Środkowo-Wschodniej. Pew Research Center. https://assets.pewresearch.org/wp-content/uploads/sites/11/2017/05/15120322/POL-Overview-FOR-WEB.pdf
View in Google Scholar
Pew Research Center. (2022). Religious composition by country, 2010–2050. Pew Research Center. https://www.pewresearch.org/religion/feature/religious-com-position-by-country-2010-2050/
View in Google Scholar
Plagnol, A. C. (2011). Financial satisfaction over the life course: The influence of as-sets and liabilities. Journal of Economic Psychology, 32(1), 45–64. https://doi.org/10.1016/j.joep.2010.10.006
View in Google Scholar
Renneboog, L., & Spaenjers, C. (2012). Religion, economic attitudes, and household finance. Oxford Economic Papers, 64(1), 103–127. https://doi.org/10.1093/oep/gpr025
View in Google Scholar
Rindfleisch, A., & Crockett, D. X. (1999). Cigarette smoking and perceived risk: A multidimensional investigation. Journal of Public Policy & Marketing, 18(2), 159–171. https://doi.org/10.1177/074391569901800203
View in Google Scholar
Robbins, B. G. (2022). Measuring generalized trust: Two new approaches. Sociological Methods & Research, 51(1), 305–356. https://doi.org/10.1177/0049124119852371
View in Google Scholar
Sapienza, P., & Zingales, L. (2012). A trust crisis. International Review of Finance, 12(2), 123–131. https://doi.org/10.1111/j.14682443.2012.01152.x
View in Google Scholar
Sarofim, S., Minton, E., Hunting, A., Bartholomew, D. E., Zehra, S., Montford, W., Cabano, F., & Paul, P. (2020). Religion’s influence on the financial well-being of consumers: A conceptual framework and research agenda. Journal of Consumer Affairs, 54(3), 1028–1061. https://doi.org/10.1111/JOCA.12315
View in Google Scholar
Shariff, A. F., Willard, A. K., Andersen, T., & Norenzayan, A. (2015). Religious priming: A meta-analysis with a focus on prosociality. Personality and Social Psychology Review, 20(1), 27–48. https://doi.org/10.1177/1088868314568811
View in Google Scholar
Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. C. (2009). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30(6), 708–723. https://doi.org/10.1016/j.appdev.2009.02.003
View in Google Scholar
Stulz, R. M., & Williamson, R. (2003). Culture, openness, and finance. Journal of Financial
View in Google Scholar
Economics, 70(3), 313–349. https://doi.org/10.1016/S0304-405X(03)00173-9
View in Google Scholar
Valente, M. J., Rijnhart, J. J. M., Smyth, H. L., Muniz, F. B., & MacKinnon, D. P. (2020). Causal mediation programs in R, Mplus, SAS, SPSS, and Stata. Structural Equation Modeling: A Multidisciplinary Journal, 27(6), 975–984. https://doi.org/10.1080/10705511.2020.1777133
View in Google Scholar
Valeri, L., & VanderWeele, T. J. (2013). Mediation analysis allowing for exposure-mediator interactions and causal interpretation: Theoretical assumptions and implementation with SAS and SPSS macros. Psychological Methods, 18(2), 137–150. https://doi.org/10.1037/a0031034
View in Google Scholar
VanderWeele, T. J., Mathur, M. B., & Chen, Y. (2020). Outcome-wide longitudinal designs for causal inference: A new template for empirical studies. Statistical Science, 35(3), 437–466. https://doi.org/10.1214/19-STS728
View in Google Scholar
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1), 53–68. https://doi.org/10.1007/s11205-008-9288-6
View in Google Scholar
Xu, X. (2020). Trust and financial inclusion: A cross-country study. Finance Research Letters, 35, 101310. https://doi.org/10.1016/j.frl.2019.101310
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Andrzej Cwynar, Tomasz Potocki, Piotr Białowolski, Weziak-Bialowolska
This work is licensed under a Creative Commons Attribution 4.0 International License.
