Religious Beliefs And Wealth Accumulation

Abstract

One of the more interesting findings in the research on household wealth is the relationship between religion and wealth accumulation. In contrast to previous studies that use denominational affiliation, we use a more precise measure of religious belief constructed from responses to survey questions regarding interpretation of the Bible. Regression results indicate that households with more literalist Biblical beliefs have lower net worth overall. Additional analysis using quantile regression reveals that this relationship holds only for the upper half of the wealth distribution. There is no relationship at lower levels of wealth. Finally, while more literalist households are less likely to have an investment account or to have ever received an inheritance, they are more likely to own a home and to have a positive net worth.