Religious service attendance and consumer financial outcomes: Evidence from a longitudinal survey

Authors

  • Andrzej Cwynar Institute for Public Administration and Business, WSEI University, Lublin, Poland https://orcid.org/0000-0003-2702-0397
  • Tomasz Potocki Institute of Economics and Finance, University of Rzeszów, Poland https://orcid.org/0000-0001-7309-7892
  • Piotr Białowolski Department of Economics, Kozminski University, Warsaw; Human Flourishing Program, Harvard University, Cambridge, MA, United States https://orcid.org/0000-0003-4102-0107
  • Dorota Węziak-Białowolska Department of Quantitative Methods and Applications of Computer Science, Kozminski University, Warsaw, Poland https://orcid.org/0000-0003-2711-2283

DOI:

https://doi.org/10.18559/ebr.2024.4.1225

Keywords:

religious service attendance , savings, debt, financial satisfaction, social contacts

Abstract

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

Download data is not yet available.

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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: https://doi.org/10.1177/000312240306800505
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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: https://doi.org/10.1016/j.jbankfin.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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: https://doi.org/10.1515/9781400829217
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 Economic Review, 101(3), 166–170. https://doi.org/10.1257/aer.101.3.166 DOI: 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 DOI: 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 DOI: https://doi.org/10.2202/1538-0637.1454
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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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. DOI: https://doi.org/10.1111/j.1465-7295.1998.tb01721.x
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 behavior. International Economic Review, 50(4), 1169–1182. https://doi.org/10.1111/j.1468-2354.2009.00564.x DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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’ investment decisions. Journal of Financial Research, 44(4), 753–788. https://doi.org/10.1111/jfir.12260 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 assets and liabilities. Journal of Economic Psychology, 32(1), 45–64. https://doi.org/10.1016/j.joep.2010.10.006 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: https://doi.org/10.1111/j.1468-2443.2012.01152.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 DOI: 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 DOI: 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 DOI: 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 Economics, 70(3), 313–349. https://doi.org/10.1016/S0304-405X(03)00173-9 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: 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 DOI: https://doi.org/10.1016/j.frl.2019.101310
View in Google Scholar

Downloads

Published

2024-11-14

Issue

Section

Research article- regular issue

How to Cite

Cwynar, A., Potocki, T., Białowolski, P., & Węziak-Białowolska, D. (2024). Religious service attendance and consumer financial outcomes: Evidence from a longitudinal survey. Economics and Business Review, 10(4). https://doi.org/10.18559/ebr.2024.4.1225

Similar Articles

1-10 of 169

You may also start an advanced similarity search for this article.