Skip to main content

Advertisement

Log in

Religiosity, income and wellbeing in developing countries

  • Published:
Empirical Economics Aims and scope Submit manuscript

Abstract

This study examines the relationship between religiosity, income and subjective wellbeing in a sample of developing countries using data from the World Values Survey Waves 2–6 (1990–2014). Beyond examining the effects of religiosity and income on subjective wellbeing separately and independently, we also examine how the interaction between religiosity and income affects wellbeing. Our results suggest that while both religiosity and income positively affect wellbeing, the effect of income on wellbeing is relatively stronger (quantitatively larger in size) than the effects of religiosity. Furthermore, we find evidence in favour of complementarity between religiosity and income which show stronger effects on wellbeing than the individual effects of income and religiosity.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. A vast body of literature examines the association between religiosity and wellbeing. Our attempt and claim is not to provide an exhaustive review of the extant literature; rather we provide a brief overview of selected empirics in order to identify gaps and motivate our study. For exhaustive reviews on the subject, see systematic reviews and meta-analyses such as Witter et al. (1985), Hackney and Sanders (2003), Sawatzky et al. (2005).

  2. The data are collected under ethical norms in line with the mission of the World Values Survey Association. Analysis of this secondary data represents low risk and is therefore exempt from additional ethics clearance at the authors home Institutions.

  3. The mode of data collection for WVS surveys is face-to-face interviewing.

  4. For details on the WVS data, see www.worldvaluessurvey.org.

  5. Our sample reflects about 36% of developing countries in the world. The sample also covers all the geographic locations in the world.

  6. Similar trends would be observed should we use columns 2 and 3. However, to avoid repetition, we focus on only column 1 only. In results not reported here, we also use income scale in the interaction term instead of the income dummy and results remain positive and statistically significant.

References

  • Angner E (2010) Subjective well-being. J Socio Econ 39(3):361–368

    Article  Google Scholar 

  • Awaworyi Churchill S, Mishra V (2017) Trust, social networks and subjective wellbeing in China. Soc Indic Res 132(1):313–339. https://doi.org/10.1007/s11205-015-1220-2

    Article  Google Scholar 

  • Batson CD, Schoenrade P, Ventis WL (1993) Religion and the individual: a social-psychological perspective. Oxford University Press, Oxford

    Google Scholar 

  • Belfield CR, Kelly IR (2012) The benefits of breast feeding across the early years of childhood. J Hum Cap 6(3):251–277. https://doi.org/10.1086/667415

    Article  Google Scholar 

  • Biswas-Diener R, Diener E (2006) The subjective well-being of the homeless, and lessons for happiness. Soc Indic Res 76(2):185–205

    Article  Google Scholar 

  • Bowler K (2013) Blessed: a history of the American prosperity gospel. Oxford University Press, Oxford

    Book  Google Scholar 

  • Buch CM, Kesternich I, Lipponer A, Schnitzer M (2014) Financial constraints and foreign direct investment: firm-level evidence. Rev World Econ 150(2):393–420

    Article  Google Scholar 

  • Camfield L, Choudhury K, Devine J (2006) Relationships, happiness, and wellbeing: Insights from Bangladesh. Wellbeing in Developing Countries (WeD) Working Paper (14)

  • Chakravarti D (2006) Voices unheard: the psychology of consumption in poverty and development. J Consum Psychol 16(4):363–376

    Article  Google Scholar 

  • Comaroff J, Comaroff JL (1999) Occult economies and the violence of abstraction: notes from the South African postcolony. Am Ethnol 26(2):279–303

    Article  Google Scholar 

  • Crabtree S (2010) Religiosity highest in world’s poorest nations. Gallup global reports, 31

  • Cummins RA (2000) Personal income and subjective well-being: A review. J Happiness Stud 1(2):133–158

    Article  Google Scholar 

  • Di Tella R, MacCulloch RJ, Oswald AJ (2003) The macroeconomics of happiness. Re Econ Stat 85(4):809–827

    Article  Google Scholar 

  • Diener E (2009) The science of subjective well-being: the collected works of Ed Diener. Springer, New York

    Book  Google Scholar 

  • Diener E, Oishi S (2000) Money and happiness: income and subjective well-being across nations. In: Diener E, Suh EM (eds) Culture and subjective well-being. The MIT Press, Cambridge, MA, pp 185–218

  • Diener E, Sandvik E, Seidlitz L, Diener M (1993) The relationship between income and subjective well-being: relative or absolute? Soc Indic Res 28(3):195–223

    Article  Google Scholar 

  • Diener E, Suh E, Lucas RE, Smith HL (1999) Subjective well-being: three decades of progress. Psychol Bull 125(2):276–302

    Article  Google Scholar 

  • Diener E, Oishi S, Lucas RE (2009) Subjective well-being: the science of happiness and life satisfaction. Oxf Handb Posit Psychol 2:187–194

    Google Scholar 

  • Diener E, Tay L, Myers DG (2011) The religion paradox: If religion makes people happy, why are so many dropping out? J Personal Soc Psychol 101(6):1278

    Article  Google Scholar 

  • Durkheim E (1915) The elementary forms of the religious life. Macmillan, New York

    Google Scholar 

  • Easterlin RA (1973) Does money buy happiness? Public Interest 30:3

    Google Scholar 

  • Easterlin RA (1974) Does economic growth improve the human lot? Some empirical evidence. Nations Househ Econ Growth 89:89–125

    Google Scholar 

  • Easterlin RA (1995) Will raising the incomes of all increase the happiness of all? J Econ Behav Organ 27(1):35–47

    Article  Google Scholar 

  • Ellison CG (1995) Race, religious involvement and depressive symptomatology in a southeastern US community. Soc Sci Med 40(11):1561–1572

    Article  Google Scholar 

  • Ellison CG (1998) Introduction to symposium: religion, health, and well-being. J Sci Study Relig 37(4):692–694

    Google Scholar 

  • Ellison CG, Levin JS (1998) The religion-health connection: evidence, theory, and future directions. Health Educ Behav 25(6):700–720

    Article  Google Scholar 

  • Emmons RA, Cheung C, Tehrani K (1998) Assessing spirituality through personal goals: implications for research on religion and subjective well-being. Soc Indic Res 45(1–3):391–422

    Article  Google Scholar 

  • Emran MS, Shilpi F (2012) The extent of the market and stages of agricultural specialization. Can J Econ/Revue canadienne d’économique 45(3):1125–1153

    Article  Google Scholar 

  • Fisiy CF, Geschiere P (1991) Sorcery, witchcraft and accumulation regional variations in south and west Cameroon. Crit Anthropol 11(3):251–278

    Article  Google Scholar 

  • George LK, Larson DB, Koenig HG, McCullough ME (2000) Spirituality and health: What we know, what we need to know. J Soc Clin Psychol 19(1):102

    Article  Google Scholar 

  • George LK, Ellison CG, Larson DB (2002) Explaining the relationships between religious involvement and health. Psychol Inq 13(3):190–200

    Article  Google Scholar 

  • Hackney CH, Sanders GS (2003) Religiosity and mental health: a meta-analysis of recent studies. J Sci Study Relig 42(1):43–55

    Article  Google Scholar 

  • Haughton JH, Khandker SR (2009) Handbook on poverty and inequality. World Bank Publications, Washington

    Google Scholar 

  • Headey B, Wooden M (2004) The effects of wealth and income on subjective well-being and ill-being. Econ Rec 80(s1):S24–S33

    Article  Google Scholar 

  • Helliwell JF, Putnam RD (2004) The social context of well-being. Philos Trans R Soc 359:1435–1446

    Article  Google Scholar 

  • Helliwell JF, Wang S (2011) Trust and wellbeing. Int J Wellbeing 1(1):42–78

    Article  Google Scholar 

  • Hofstede G (1983) The cultural relativity of organizational practices and theories. J Int Bus Stud 14(2):75–89

    Article  Google Scholar 

  • Hofstede G (1984) The cultural relativity of the quality of life concept. Acad Manag Rev 9(3):389–398. https://doi.org/10.5465/amr.1984.4279653

    Article  Google Scholar 

  • Hoverd WJ, Sibley CG (2013) Religion, deprivation and subjective wellbeing: testing a religious buffering hypothesis. Int J Wellbeing 3(2):182–196

    Google Scholar 

  • Inglehart R, Foa R, Peterson C, Welzel C (2008) Development, freedom, and rising happiness: a global perspective (1981–2007). Perspect Psychol Sci 3(4):264–285

    Article  Google Scholar 

  • King M, Schafer WE (1992) Religiosity and perceived stress: a community survey. Sociol Relig 53(1):37–47

    Google Scholar 

  • Klitgaard R (1991) Adjusting to reality: beyond” state versus market” in economic development. ICS Press, San Francisco

    Google Scholar 

  • Kozma A, Stones MJ, McNeil JK (1991) Psychological well-being in later life. Harcourt Brace, Toronto

    Google Scholar 

  • Levin JS, Markides KS, Ray LA (1996) Religious attendance and psychological well-being in Mexican Americans: a panel analysis of three-generations data. The Gerontologist 36(4):454–463

    Article  Google Scholar 

  • Lewbel A (2012) Using heteroscedasticity to identify and estimate mismeasured and endogenous regressor models. J Bus Econ Stat 30(1):67–80

    Article  Google Scholar 

  • Maslow AH (1943) A theory of human motivation. Psychol Rev 50(4):370

    Article  Google Scholar 

  • Mickley JR, Carson V, Soeken KL (1995) Religion and adult mental health: state of the science in nursing. Issues Ment Health Nurs 16(4):345–360

    Article  Google Scholar 

  • Mishra V, Smyth R (2015) Estimating returns to schooling in urban China using conventional and heteroskedasticity-based instruments. Econ Modell 47:166–173

    Article  Google Scholar 

  • Norris P, Inglehart R (2011) Sacred and secular: religion and politics worldwide. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Oishi S, Diener E (2013) Residents of poor nations have a greater sense of meaning in life than residents of wealthy nations. Psychol Sci https://doi.org/10.1177/0956797613507286

  • Parish J (2000) From the body to the wallet: Conceptualizing Akan witchcraft at home and abroad. J R Anthropol Inst 6(3):487–500

    Article  Google Scholar 

  • Parish J (2011) West African witchcraft, wealth and moral decay in New York City. Ethnography 12(2):247–265

    Article  Google Scholar 

  • Pinquart M, Sörensen S (2000) Influences of socioeconomic status, social network, and competence on subjective well-being in later life: a meta-analysis. Psychol Aging 15(2):187

    Article  Google Scholar 

  • Portela M, Neira I, del Mar Salinas-Jiménez M (2013) Social capital and subjective wellbeing in Europe: A new approach on social capital. Soc Indic Res 114(2):493–511

    Article  Google Scholar 

  • Rose-Ackerman S (1996) Altruism, nonprofits, and economic theory. J Econ Lit 34(2):701–728

    Google Scholar 

  • Rosenberg M (1979) Conceiving the self. Basic Books, New York

    Google Scholar 

  • Sachs J (2005) The end of poverty: How we can make it happen in our lifetime. Penguin, London

    Google Scholar 

  • Sawatzky R, Ratner PA, Chiu L (2005) A meta-analysis of the relationship between spirituality and quality of life. Soc Indic Res 72(2):153–188

    Article  Google Scholar 

  • Sen A (2001) Development as freedom. Oxford Paperbacks, Oxford

    Google Scholar 

  • Tay L, Li M, Myers D, Diener E (2014) Religiosity and subjective well-being: an international perspective religion and spirituality across cultures. Springer, Dordrecht, pp 163–175

    Google Scholar 

  • Witter RA, Stock WA, Okun MA, Haring MJ (1985) Religion and subjective well-being in adulthood: a quantitative synthesis. Rev Relig Res 26(4):332–342. https://doi.org/10.2307/3511048

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sefa Awaworyi Churchill.

Appendix

Appendix

See Table 10.

Table 10 Country rankings based on religion, income and wellbeing

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Awaworyi Churchill, S., Appau, S. & Farrell, L. Religiosity, income and wellbeing in developing countries. Empir Econ 56, 959–985 (2019). https://doi.org/10.1007/s00181-017-1380-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00181-017-1380-9

Keywords

JEL Classification

Navigation