DP 10077
DP 10077
             Pierre-Guillaume Méon
DISCUSSION
Ilan Tojerow
July 2016
                                                               Forschungsinstitut
                                                               zur Zukunft der Arbeit
                                                               Institute for the Study
                                                               of Labor
 In God We Learn? Religions’ Universal
   Messages, Context-Specific Effects,
         and Minority Status
                                Pierre-Guillaume Méon
                                 Université libre de Bruxelles (CEB)
                                          Ilan Tojerow
                         Université libre de Bruxelles (CEB and DULBEA)
                                              and IZA
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IZA Discussion Paper No. 10077
July 2016
ABSTRACT
Corresponding author:
Ilan Tojerow
Université libre de Bruxelles
CP 114/02
50, Av. F.D. Roosevelt
1050 Brussels
Belgium
E-mail: itojerow@ulb.ac.be
*
 We thank François Facchini, Victor Ginsburgh, Erich Gundlach, Petros Sekeris, participants of the
European Public Choice Society conference in Cambridge and at the European Workshop in Political
Macroeconomics, in Mainz, for helpful comments and suggestions, as well as participants in seminars
at Tulane University, the University of Hamburg, the University of Portsmouth, the University of Liège,
and Université libre de Bruxelles. The authors claim the sole responsibility for remaining errors and
approximations.
1. Introduction
       Nearly one century after the publication of Max Weber’s (1904) classic and after
spending decades in the purgatory of economics, religion has once again resurfaced as an
explanation of economic performance. Barro and McCleary (2003, 2006) have thus
econometrically established a link between religiosity and growth in contemporary
economies. Becker and Wössmann (2009) moreover report a cross-country association
between per capita GDP and the share of Protestants in 1900. Various channels have been
investigated to account for the correlation between specific religious denominations and
economic performance, be it the role of the state, as argued by Kuran (1996, 1997, 2004) or
Platteau (2008), the impact of religion on values and attitudes towards economic activities,
which is Weber’s (1904) classic argument and has for instance been illustrated by Guiso et
al. (2003) or Hillman (2007).
       Unfortunately, that contention has received little attention so far. Most existing studies
of the impact of religion on education are either country-specific or based on cross-country
regressions. This is the case of Chiswick (1988) or Glaeser and Sacerdote (2008) for the
                                               1
United States, Brown and Taylor (2007) for the United Kingdom, or Blunch (2007) for
Ghana. By construction, they cannot therefore compare the effect of religious denominations
across countries. Some studies take a more macroeconomic standpoint, and are based on
cross-country comparisons. This is what Guiso et al. (2003), Schaltegger and Torgler (2010),
or Arruñada (2010) do, although they focus on attitudes rather than on education. However, in
such regressions one runs the risk of attributing to religion differences that are related to other
country-specific traits, such as geography or institutional quality. Most of all, those
regressions force the effect of religious denominations to be the same across countries.
       In this paper, we specifically let the impact of religious denominations differ across
countries. To do so, we follow Guiso et al. (2003) and use the World Values Survey, which
provides individual data on educational attainment, religious denomination, and religiosity in
a large sample of countries. Unlike Guiso et al. (2003), we take advantage of the two-level
structure of the World Values Survey to separately estimate the impact of religious
denominations in all countries.
       Our first key finding is that no single religious denomination has a universal impact on
education. Each denomination has at the same time a positive and statistically significant
effect in some countries, a negative and statistically significant effect in other countries, and a
statistically insignificant effect elsewhere. In other words, we find the effect of religious
denominations to be country-specific. The finding is robust to controlling for individuals’
level of religiosity or not, and to focusing on individuals born in their country of residence. It
holds equally for individuals below and over forty years old, and for male and female
respondents.
                                                2
compensate for their lack of connections with the majority by stronger ties within the
community (Coleman, 1988), benefit from positive stereotypes (Shih et al., 2002), or develop
an identity that emphasizes academic effort (Akerlof and Kranton, 2002), then minority
denominations may be associated with better educational outcomes.
       To achieve those results, the rest of this paper is organized as follows. In the next
section, we survey the literature on the impact of religious denominations on education. In the
following section, we perform a country-by-country study of the impact of denominations on
education. We observe wild differences across countries in the effect of religious
denominations on education that are hidden by cross-country regressions. In section 4, we
investigate the determinants of the sign and statistical significance of the marginal impact of
religious denominations. The last section concludes.
                                                3
2. The Impact of Religious Denominations on Education
      In this section, we discuss the possible relationship with education of the main religious
denominations in our study. We first, provide arguments suggesting a uniform impact of those
denominations across countries, then argue that their impact is likely context-dependent.
      Some religious denominations have been interpreted as conveying universal norms and
incentives to acquire more or less education. We review those denominations here, focusing
in turn on Judaism, Islam, Protestantism, Buddhism, and Hinduism.
      Bobrick (2001) argues that Islam is based on a more oral tradition than Judeo-Christian
religions, resulting in lower incentives concerning literacy for Muslims. The word “Quran”
means “recitation” in Arabic. Another feature of Islam that may negatively affect educational
outcomes is the observance of Ramadan. Oosterbeek and van der Klaauw (2013) compare the
results of Muslim and non-Muslim students in microeconomics tests at the University of
Amsterdam, during years when Ramadam falls during the course and at another time. They
                                               4
find that one additional week of Ramadan exposure reduces the final grade of Muslim
students for the microeconomics course by almost 10% of a standard deviation.
      A key feature of Islam is that it offers religious education including basic reading of the
Koran in madrasas and maktabs (Borooah and Iyer, 2005, and Chaudhury and Rubin, 2011).
The impact of madrasas on non-religious education is ambiguous. On the one hand, religious
schools devote time and effort to teaching religious subjects at the expense of secular
subjects. Chaudhary and Rubin (2011) argue that, as a result, a greater prevalence of Muslim
religious schools results in a wider Muslim-Hindu literacy gap in India. On the other hand, it
can be argued that Muslim schools can provide a complementary educational system. In
Bangladesh, state-registered and -financed madrasas called aliyah teach Bengali, English,
mathematics and sciences, and their curricula are nationally defined by a national board that
also runs national examinations (Asadullah and Chaudhury, 2010). A similar system was
implemented in Indonesia (Newhouse and Beegle, 2006) and India (Borooah and Iyer, 2005).
Whether chartered madrasas can provide a quality of education comparable to that of secular
schools is a point of empirical debate. In some Indian states, madrasas are viewed as
complements to the formal education sector (Borooah and Iyer, 2005). In Indonesia,
Newhouse and Beegle (2006) could find no difference between religious and secular private
schools in the public examination records of graduates of secondary junior schools. In
Bangladesh, Asadullah et al. (2007) also find no difference between religious and secular
schools at the secondary level, but observe a learning deficit among graduates of primary
madrasas. Finally, Sander (2010) observes that Muslims in the US exhibit higher education
than Protestants and Catholics.
      Interestingly, although his main argument focused on work ethics, Weber (1904) cited
his student Offenbacher’s (1900) study on secondary school choices of Catholics, Protestants
                                               5
and Jews in the first chapter of his book, pointing to an over-representation of Protestants in
institutions that prepared for technical and commercial occupations (Realgymnasium and
Realschulen), while Catholics preferred a more general type of education (Gymnasium).
Becker and Woesmann (2009) even argue that the impact of Protestantism on literacy
accounts for most of the higher affluence of Protestants in XIXth century Prussia.
       Indeed, greater literacy rates among Protestants than Catholics have been repeatedly
observed in various countries and times, such as the US in mid-XIXth century (Go and
Lindert, 2010), the first half of the XXth century (Goldin and Katz, 2000), late XIXth century’s
Ireland (Cipolla, 1969), or Finland (Markussen, 1990). More recently, Glaeser and
Glendon (1998) found a stronger connection between religiosity and education among
Calvinist Protestants than among Catholics, on contemporary US data. Blunch (2007) found,
in his study of educational attainment in Ghana, that Protestant breeds of Christianity are
associated with higher levels of education than Catholicism.
       One should note, however, that Protestantism is heterogeneous, and that some
Protestant denominations hold conservative views on the teaching of scientific disciplines,
perceived as hostile to their faith and to the conviction that the Bible is inerrant, as Darnell
and Sherkat (1997) or Beyerlein (2004) argue. Accordingly, Darnell and Sherkat (1997),
Lehrer (1999), or Beyerlein (2004) have observed lower educational levels among
conservative Protestant denominations than among other Protestant and non-Protestant
denominations, using various surveys in the US.1
       Roman Catholicism is the implicit reference group in Max Weber’s (1904) book, and
probably in most of the works devoted to the educational advantage of Protestants.2 It is
therefore implicitly assumed to be less conducive to education. This implicit belief may
contrast with the network of Catholic schools and higher education institutions around the
world. Morey and Piderit (2010), for instance, count no less than 220 Catholic colleges and
universities only in the United States. The Catholic Church also had developed an intellectual
tradition on education and the role of reason, going back to the Early Church Fathers and the
Middle Ages. However, while that tradition recognized that faith and reason were compatible,
1
   Conservative Protestants are defined in those studies as three denominations: Fundamentalists,
Pentecostal/Charismatic, and Evangelical. Christians. Beyerlein (2004) observes that the result that conservative
Protestants are less educated is driven by Fundamentalist and Pentecostal Protestants, while Evangelicals exhibit
above-standard educational attainments.
2
  Weber’s (1904) comments of Offenbacher’s (1900) figures on the secondary school choices of Catholics,
Protestants and Jews, for instance essentially focus on the difference between Protestants and Catholics.
                                                       6
it considered that secular matters were subordinate to the Church’s religious teaching. A
specificity of the Catholic Church vis-à-vis Protestant denominations, and most other
denominations, is that it has a central authority that can establish an official doctrine. It only
started establishing its doctrine on education in the XXth century, essentially in two
documents (McClelland, 1996). The first is the encyclical Divini illius magistri published by
Pope Pius XI in 1929. Although it acknowledged the role that the State could play in
education, the encyclical recalled that secular education was subordinate to religious
education and forbade Catholic children to attend laic schools. The second document is the
Second Vatican Council’s Declaration on Christian Education, entitled Gravissimum
educationis and promulgated in 1965 by Pope Paul VI. It took a more moderate stance,
emphasizing the positive roles of education and science, and featuring no explicit ban on
secular or laic education. The overall position of the Roman Catholic Church on education
therefore evolved over the course of the century, and its overall impact is ambiguous,
especially as the official doctrine may be applied and interpreted in different ways in different
countries or by different institutions.
       The impact of other religions has, to our knowledge, received less attention, at least in
the economics literature. One may contend that Buddhism has a positive impact on
education, because of the importance it gives to universal access to the teaching of the
Buddha. Ling (1984) argues that Buddhism is essentially a matter of teaching. The Buddha
himself is portrayed as a teacher with an aim to address everyone without discrimination. As a
result, in some traditions, Buddhism stresses the need to educate the largest number of people
to read and write. In both Burma and Thailand, monasteries were thus instrumental in
spreading literacy, Ling (1984) argues, resulting in high literacy rates.3 Secular governments
even leveraged on those monasteries to spread education. Using contemporary data,
Sander (2010) reports evidence that Buddhists having lived in the US at least since age 16
exhibit higher educational achievements than Protestants and Catholics. By contrast,
Ling (1984) stresses that Buddhism’s emphasis on universal access to the teaching of the
Buddha stands in stark contrast with Hinduism, which sees parts of the population as unfit to
the teaching of Brahmans in Hinduism.
3
 Ling (1984) recalls that in the first decade of the XXth century, the rate of literacy for all Burmese males was 49
percent, while only 12 percent for Madras.
                                                         7
2.2. Country-Specific Impacts of Denominations on Education: the Role of Minority Status
      The views surveyed above imply that the impact of a religious denomination on
education is independent from the context where it occurs. However, religion is intrinsically a
social activity. Its impact on individual believers is therefore likely affected by their
environment, and the behavior of others, be it members of the same denomination or of other
groups in society. In other words, it is bound to be context-dependent. If the impact of a
denomination is context-dependent, then one should isolate the dimensions of the context that
determine its impact. In this section, we argue that there are strong reasons to expect that
being a minority religion is a key determinant of the impact of a denomination on educational
outcomes, although the impact may a priori be ambiguous.
      Minority religions may also directly suffer from discrimination in education. Hannah
and Linden (2012) document that graders tend to give lower grades to papers that are
randomly attributed to lower caste students. The same mechanism may apply to students
whose denomination is stigmatized.
      Part of the effect of being a minority religion may also be driven by the reaction of the
discriminated-against students. Investing less in the acquisition of human capital may be a
rational response to discrimination, as Coate and Loury (1993) argue, if discriminated-against
students face a larger cost of acquiring education than their non-discriminated counterparts.
Behavioral mechanisms may also be a work. The Pygmalion effect initially documented by
                                                8
Rosenthal and Jacobson (1968) prompts pupils to conform to their teachers’ expectations.
Accordingly, pupils belonging to minority religions may suffer from their teachers’ lower
expectations, and end up acquiring less human capital. In a similar way, students may
erroneously internalize a negative stereotype of inferiority. Hoff and Pandey (2006) thus
observed that simply revealing that pupils were members of a disadvantaged caste reduced
their performance in solving mazes on their own, and reduced their expectations of their own
performance. By the same token, membership in a minority religion may lower the
performance of pupils and students.
      Akerlof and Kranton’s (2000) theory of identity and its (2002) application to education
provide a similar rationale. Akerlof and Kranton’s (2002) model assumes that students not
only maximize the pecuniary payoffs of education but also get utility from identifying with a
group. To do so, they must share the attributes of the group and conform to its norms in terms
of effort. Students will identify with the group that provides them the largest utility. Students
from the leading group are those that best conform to the school’s ideal. They therefore exert
effort to reach the school’s ideal and achieve academic success. However, identifying with the
leading group is costly in terms of self-image if one does not share its attributes, for instance
in terms of looks or social network. Students who do not have those attributes may therefore
be better off identifying with another group that rejects the school’s ideal, emphasizes low
effort, and obtains lower academic success. Belonging to a minority religion may precisely be
the type of attributes that prevents conforming to the ideal of the leading group, who typically
belongs to the majority. Minority students may therefore choose to identify with a group that
opposes the school’s ideal, with negative consequences on their academic achievements.
      While the mechanisms discussed so far suggest that members of minority religions
should acquire less education, a closer look at the same arguments can also result in the
opposite contention. First, Coleman’s (1988) concept of social capital is not only quantitative.
Families belonging to minority denominations may compensate their relative lack of
connections with the rest of society by stronger relationships and a larger commitment to
education within the family. Coleman’s (1988) thus recalls the case of Asian immigrant
families who purchased two copies of textbooks needed by the child, so that the mother would
be able to help her child. In addition, the minority group may collectively compensate for its
minority status by developing stronger community ties, resulting in more social capital, not
less, and better educational outcomes. He thus relates the better performance of Catholic
schools in the US to the role of the adult community around those schools.
                                               9
       Disproportionately investing in education may also be a way to compensate for
discrimination. In extreme cases, a minority facing persecution or the need to seek refuge
would have an incentive to invest in education, because human capital, unlike physical
capital, cannot be seized and is easily transferred across countries. Brenner and Kiefer (1981)
use that line of reasoning to explain the finding that the level of education of Palestinians
living in Arab countries after 1948 increased, and resembled that of Jews living in the US.
       Stereotypes and identities may also encourage the acquisition of human capital. Indeed,
all stereotypes are not necessarily negative. If a minority group is for instance perceived as
“good at math” or “hard-working”, then teachers may raise their expectations, resulting in a
positive Pygmalion effect for the minority group. Shih et al. (2002) report experimental
evidence that subtly activated positive stereotypes can enhance academic performance of the
target group.4
       Akerlof and Kranton’s (2000, 2002) model of identity performance also produces mixed
predictions. Not being able to identify with the leading group may enhance academic
performance for students who identify with a group that lacks the attributes of the leading
group but values academic performance. The 2002 model applied to academic performance
considers three groups of students, referred to as jocks, nerds and burnouts, and two types of
skills, for simplicity looks and academic ability. Jocks are the leading group, insofar as they
get the largest utility from identifying with the group, followed by nerds, and burnouts. The
key group attribute is looks for jocks and academic ability for nerds, while burnouts have no
specific attribute. The model implies that a student whose looks do not conform to those of
jocks will opt to identify with one of the two other groups. Only if her ability is too small will
she identify with burnouts. With sufficient ability, she will identify with nerds. As that group
emphasizes academic performance, students identifying with it will have an incentive to
increase academic effort to conform to the group’s ideal, thereby improving their academic
performance. The model therefore implies that if students from a religious minority are
prevented from identifying with the leading crowd, they may have an incentive to increase
academic effort. Their minority status would thus result in the acquisition of more human
capital, not less.
4
  Positive stereotypes are, however, no unmitigated blessing. Shih et al. (2002) report that positive stereotypes
can indeed reduce academic performance if they are blatantly imposed on their targets. See Czopp et al. (2015)
for a survey of the effects of positive stereotypes.
                                                      10
      In a similar way, Iannaccone (1992) and Berman (2000) emphasize that religion is a
club good, insofar as the benefit from religious participation depends not only on individuals’
own inputs but also on the inputs of others. The impact of a given denomination on behavior
in general therefore depends on the size of the religious community or the need to distinguish
its members from the rest of society. Berman (2000) accordingly argues that the lengthening
of religious studies (yeshiva) among ultra-orthodox Jews in Israel is a rational reaction to the
difficulty to signal commitment to the ultra-orthodox community in a predominantly Jewish
society. Berman (2000) remarks that ultra-orthodox Jews with the same geographic origin as
those who live in Israel but who live in countries that are not predominantly Jewish, for
instance in Central and Eastern Europe, Canada or the US, stop attending yeshiva much
earlier than in Israel. Berman’s (2000) interpretation of this finding is that sending a signal
that one belongs to the ultra-orthodox community is much easier in predominantly non Jewish
societies than in a society that is predominantly Jewish. The impact of belonging to the ultra-
orthodox denomination therefore has a clear context-dependent effect on religious education.
It is weaker in countries where Jews are a minority. As attending yeshiva comes at the cost of
secular education, one should expect ultra-orthodox Jews to have an incentive to acquire more
secular education in countries where Judaism is a minority religion. The same line of
reasoning may apply to other denominations elsewhere. What it implies is that not being a
minority may adversely affect the acquisition of secular human capital.
                                               11
Muslim elites on education in the Ottoman Empire depended on whether Islam was a minority
or not.
      The notion that the impact on education of a denomination depends on its minority
status, though appealing, has received little direct empirical attention, but indirect evidence
suggests that minority religions tend to perform better than other denominations in terms of
academic achievements. For instance, Sander (2010) reports that Jewish, Muslim, and
Buddhist residents in the US have higher educational achievements than Protestant and
Catholics, while their religions only represent 1.4, 0.5, and 0.5 percent of the population.
      Chaudhary and Rubin (2011) report similar evidence for Muslims in India. They note
that Muslims living in districts with more Muslims have lower literacy rates. They for
instance note that in Bengal 21.1 percent of Hindu males are able to read and write but only
10.9 percent of Muslim males. In Madras, where the share of Muslims is much lower, literacy
rates of Hindus and Muslims are comparable. Borooah and Iyer (2005) made similar findings.
3.1. Data
      Our key data was retrieved from the World Values Survey. The survey has been carried
in a large number of countries since 1981. It results in a two-level dataset, where the country
of individual respondents can be identified.
      The World Values Survey covers a lot of issues, and more specifically contains
questions about education, religion, and religiosity. Respondents are asked to indicate their
level of education. It results in a variable that can assume three values: lower education,
middle education, and higher education. An individual is considered to have a lower
                                               12
education if he/she inadequately completed elementary education, completed elementary
education, or has not completed secondary school. The individual falls in the middle category
if he/she has completed secondary school or has some university-preparatory type or
secondary intermediate general qualification. The individual will be considered as having
received higher education if he/she has a university degree or at least a higher education with
a lower-level tertiary certificate.
          The World Values Survey also contains information about respondents’ religious
denominations. As there are many denominations across the world, which would result in
many denominations appearing only in one country, we pooled denominations together
following Guiso et al.’s (2003) classification: Catholic, Christian-Protestant, Christian-
Orthodox, Buddhist, Muslim, Jewish, and Hindu. Other less frequent religions were pooled
under the label “other religions”, and we kept a separate category for respondents reporting no
religious affiliation.
         Table 1 presents statistics of our final sample of 147,049 respondents, distributed across
77 countries and 3 waves of the World Values Survey. 5 The top of the table reports the
worldwide distribution of religious denominations. It appears that more than 40% of the
individuals in our sample are affiliated with one of the Christian denominations, i.e.
Catholicism, Protestantism and Christian Orthodoxy. More than 50% go to religious services
once a year or less, while 30% go to services at least once a week. The rest of the table
provides for the distribution across education levels and for demographics.
         As a first step, we relate at the global level individual educational levels to religious
denominations using a cross-country regression similar to those of Guiso et al. (2003),
Schaltegger and Torgler (2010), or Arruñada (2010). We therefore estimate the following
ordered logit model for each denomination:
5
    See Table A1 in the Appendix for details on the sample composition broken down by country.
                                                       13
Prob(Educationi = y) = f(Denominationki, Ci, Countryi, Yeari)                        (1)
Where:
- Educationi is the ordered variable measuring respondents i’s level of education;
- y ϵ (lower education, middle education, and higher education);
- Denominationki is a dummy variable capturing whether respondent i’s religious
         denomination is denomination k, where k  (Catholic, Christian-Protestant, Christian-
         Orthodox, Buddhist, Muslim, Jewish, and Hindu, Other religions, and no religious
         affiliation);
- Ci is a vector of control variables controlling for respondent i’s demographics and
         religiosity: Age, gender, marital status, income (by decile), and social class. We
         include a dummy variable set to one if respondent i declares to be a religious person,
         and three dummy variables controlling for respondent i’s church attendance: one
         capturing whether the respondent goes to church once a week, another if he/she goes
         to church once a month, and a third if he/she goes to church one a year;
- Countryi is a fixed country effect;
- Yeari is a dummy variable controlling for the survey wave in which the respondent filled in
         the questionnaire.
         Country effects are included to control for systematic differences across countries. As
a result, the observed effects of religious denominations are at work within countries, and can
for instance not be attributed to differences in education policies.
                                                14
       The result of those regressions are reported in Table 2, where each column reports the
results for one denomination. The coefficient of interest is the coefficient of the denomination
dummy, which captures a different denomination in each column. It for instance captures
whether respondent i is a Catholic in column 1.1 and whether he/she is a Protestant in column
1.2. The sign of the coefficient of the dummy variable captures whether at the global level
belonging to a denomination increases or decreases the probability to have acquired a higher
level of education.
      However, we observe that the Jewish and Christian Orthodox dummies exhibit positive
coefficients that are significant at the five and one-percent levels respectively. Jewish and
Christian Orthodox respondents accordingly have a higher level of education on average at
the global level. Conversely, the Muslim dummy bears a negative coefficient that is negative
at the one-percent level, suggesting that being Muslim is on average associated with a lower
level of education. Table 2 also shows that being a non-religious person bears a positive sign
significant at the one-percent level, meaning that non-religious persons have on average a
higher level of education.
      Table 2 seems to deliver a clear message: Most religious denominations seem unrelated
to the level of education with one negative exception, Islam, and two positive exceptions,
Judaism and Christian Orthodoxy. These findings at the global level however rest on the
assumption that the marginal impact of each denomination is the same across countries. This
assumption makes sense if one believes that religious denominations convey universal
messages and prescriptions. Now, our specifications so far force the marginal effect of
religious denominations to be the same across countries. As a consequence, the estimates of
Table 2 may hide important cross-country heterogeneities. In fact, they simply prevent us
from testing the notion that religious denominations have universal effects.
                                              15
         To test that notion, one has to allow the marginal effect of each denomination to differ
across countries. With this end in view, we therefore performed another set of regressions.
We still regressed the level of education achieved by individual respondents on their religious
denomination and a series of control variables, but instead of pooling all countries together,
we ran the following regression for each denomination k and each country j:
Where variables are defined as in Expression (1). The key difference between the two
specifications is that Expression (2) includes no country fixed effect, because it is estimated
separately for each country.
6
    As the estimated model is a logit model, we cannot interpret their magnitude.
7
  Table A2 in the appendix exhaustively reports the specific sign and significance of the coefficient of each
denomination in each country.
                                                         16
       To be more specific, Figure 1 shows that Catholicism has a significantly negative
impact on education in 11.1 percent of the countries in our sample where there are Catholics,
and a significantly positive impact in 29.2 percent of those countries. Being Protestant has a
significantly negative impact in 20.3 percent of countries, and a significantly positive impact
in 29.0 percent of countries. This finding is at odds with the view that Protestant ethics should
give an incentive to acquire more education everywhere. Being a Christian Orthodox results
in a lower level of education in 20.8 percent of countries and a higher level of education in
22.6 percent of countries. Buddhism can also have a negative effect, in 25.6 percent of
countries, and a positive effect, in 30.2 percent of countries. Being Muslim reduces the level
of education in 39 percent of countries, but increases it in 10.2 percent of countries. Being
Jewish has a negative effect on the level of education in 13 percent of countries, while it has a
positive impact in 26.1 percent of countries. Again, this is at odds with the view that Judaism
provides a universal incentive to acquire education. Being Hindu is associated with a lower
level of education in 22.2 percent of countries, but has a positive effect in 29.6 percent of
countries. The Other denominations category also splits evenly between a negative and a
positive impact, which is somewhat unsurprising, as this category is by definition
heterogeneous. Finally, even the impact of reporting no religious denomination at all varies
across countries. It is negative in 5.6 percent of countries, insignificant in 62.5 percent, and
positive in 31.9 percent of countries.
       A cursory look at Table 3 reveals that no cell in the table features a zero. This
confirms the finding of Figure 1 that each religious denomination can have a significantly
                                               17
negative, significantly positive, or insignificant effect depending on the country under
consideration. Moreover, the finding holds regardless of the level of significance. It even
holds in the top panel of Table 3, where the level of significance is set at the one-percent
level, and the number of insignificant coefficients is therefore mechanically larger than in the
other two panels.
       In this sub-section, we check the robustness of our findings along two dimensions. The
first dimension is the robustness of the finding that the effect of religious denominations is
heterogeneous across countries. The second dimension is that the sign and significance of the
effect of a denomination in a country must be robust too. Table 4 therefore reports not only
the distribution of coefficients for various alternative specifications but also the percentage of
coefficients that are categorized in the same way as with the baseline specification. To
facilitate comparisons, the first column of the table reports the distribution of coefficients
obtained with the baseline specification. All the results reported in the table use the ten-
percent level of significance.
       One may argue that, by controlling for religiosity, the baseline specification may strip
denominations of their effect, because it operates through religiosity. To make sure that it is
not the case, Table 4 reports the results of estimating the baseline specification, but without
controlling for religiosity. The outcome of this robustness check is reported in the first
column of the table. Again, each denomination can have either a significantly negative
impact, an insignificant impact, or a significantly positive impact in at least some countries of
the sample. Moreover, for all religious denominations, the share of coefficients that are
categorized in the same way exceeds 90 percent of countries.
       One may be concerned that income is endogenous to education, and that it correlates
with both the level of education and the religious denomination of an individual. To make
sure that our results are not driven by the inclusion of income in the set of independent
variables, we estimate another specification that does not control for income. The second
column of Table 4 reports the distribution of coefficients when income is not controlled for in
Equation 2. It confirms our key result that no denomination has the same marginal effect
across countries. Furthermore, the sign and significance of coefficients is identical to those
obtained with the benchmark specification in 91 percent of countries or more for all
denominations.
                                               18
       Because the role of religion may have changed over time, we distinguish individuals
by age. Hence, we run all the country-denomination regressions separately for respondents
below and above the age of 40. The outcomes of the two series of regressions are reported in
Columns 4.4 and 4.5 of Table 4. The distribution of coefficients in the two columns is similar.
In addition, in both columns the distribution of coefficients remains similar to the benchmark
distribution.
       Because some religions ascribe different roles to men and women, our results may in
fact capture a gender gap. To check whether it is the case, we consider two subsamples made
up of only female or male respondents in Columns 4.6 and 4.7 of Table 4. Again, the
distribution of coefficients is similar across the two columns, and more importantly identical
to the benchmark categorization in 70.5 to 92.3 percent of countries.
       Finally, higher education may result in, or be the outcome of, religious conversions.
To make sure that our results are not driven by the impact of education on the choice of a
religious denomination, we focus on the subset of respondents who were raised religiously.
The information is only available in the third wave of the World Values Survey, which is why
we run our regressions on that specific wave. The results are reported in the last column of
Table 4. They are very close to those of the benchmark. Coefficients fall in the same category
as for the benchmark regression in at least 94 percent of countries for each denomination.
       The main message from the above results is that no religious denomination has a
homogeneous effect across the world. In other words, the effect of religious denominations is
country-specific. Admittedly, some denominations, e.g. Islam, exhibit a more frequent
negative effect, and others, like Judaism, exhibit a more frequent positive effect. However,
Islam is associated with more education in 13.6 percent of countries in our sample, and
Judaism is associated with less education in 10.9 percent of countries.
                                              19
    If the impact of religious denominations is not universal but country-specific, the key
question then becomes to determine what may drive a religious denomination to have a
negative effect in one country, a positive effect in another, and be plainly insignificant
elsewhere. This is the question that we address in the next section.
       Our key explanatory variable of interest is denomination j’s minority status in country
i, because we expect members of minority religions to face incentives that differ from those of
members of majority religions. Table 5 below reports the number of countries in our sample
where each denomination is present, and the number and shares of countries where each
denomination is a minority. Here, we define a denomination as a minority if its share of
followers in a country is smaller or equal to five-percent according to the World Values
Survey. It shows that, while the frequency varies across denominations, each denomination is
a minority in some countries. Judaism stands out, as it is a minority in every country in our
sample.
                                                    20
                              *** Insert Table 5 around here ***
       We control for a series of country characteristics that can be subsumed into two
groups. The first group of variables describes a country’s type of government and government
policy. Kuran (1996, 1997, 2004) and Platteau (2008) emphasize the relationship between
Islam and the State. Specifically, we define a dummy variable indicating whether
denomination j is a State religion in country i. We used the list of State religion provided by
Barro and McCleary (2005), and set the dummy variable to one when the State religion of
Country i, if any, corresponded to denomination j. We also control for a country’s degree of
democracy, as measured by the PolityIV index (Marshall et al., 2011). We expect religious
denominations to matter less in more democratic countries, because democracy allows for a
better representation of all the components of society. The first group of variables also
contains a measure of the official hostility of the government towards religion, retrieved from
the Religion and State Project carried out by the Association of Religion Data. That variable
increases with hostility. The effect of that variable is a priori ambiguous. On the one hand,
one may expect that more secular governments foster education for all citizens, regardless of
their denomination. In that case, hostility of the government towards religion should reduce
the influence of denominations on education. On the other hand, if the government’s hostility
leads to bar education to religious pupils, then the variable should correlate positively with the
probability that a denomination has a negative effect on education.
                                               21
Hindus are essentially observable in the poorer regions of India, where school enrolments are
low. We therefore expect the role of religious denominations to be more limited in countries
where the average level of education is higher. Specifically, the likelihood of religious
denominations having a significant positive or negative effect should be lower in countries
with a higher level of education. We therefore control for the average number of years of
secondary education in the population, as measured by Barro and Lee (2013).
       Finally, we control for the number of observations used in regressions in each country.
In our sample that number ranges from 282 in the Dominican Republic to 6745 in South
Africa. The smaller the number of observations, the larger standard errors, and the smaller t-
statistics. As a result, the likelihood of observing an insignificant coefficient is larger the
smaller the number of observations. We therefore control for that variable in all regressions to
avoid our results being biased by a statistical artifact.
       The top panel of Table 6 reports the coefficients measuring the impact of the
explanatory variable on the probability that denomination j has a positive effect significant at
the ten-percent level in country i. Conversely, the bottom panel of Table 6 reports the
coefficients measuring the impact of the explanatory variable on the probability that
                                                 22
denomination j has a negative effect significant at the ten-percent level in country i. The
unreported modality pertains to the coefficient not being significant at the ten-percent level.
       The first column of Table 6 reports the result of estimating Equation 3 when a
denomination is assumed to be a minority in a country if less than one percent of respondents
claim to belong to that denomination. We observe that that variable exhibits a positive
coefficient in the top panel and negative coefficient in the bottom panel of the column and
that both are significant at the ten-percent level. This implies that if being a minority religion
decreases the probability for religion j to be negatively associated with a lower level of
education in country i, and that it increases the probability that the religion be positively
associated with a higher level of education in the country.
       Columns 6.2 to 6.7 of Table 6 perform the same regression with increasing levels of
the threshold used to define a minority religion: 5%, 10%, 20%, 30%, 40%, and 40%
respectively. They exhibit the same pattern as the first column. Specifically, the coefficient of
the minority dummy is positive and statistically significant at the ten-percent level or beyond
in the top panel of each column, and negative and statistically significant at the ten-percent
level or beyond in the bottom panel of each column. There are only to exceptions. In Column
4, where the minority threshold is set to 20 percent, the coefficient of the minority dummy is
insignificant at standard levels of confidence in the top panel of the column. It is, however,
significantly negative at the ten-percent level in the bottom panel. Conversely, when the
threshold is set to 30 percent, in Column 5, the coefficient fails to be statistically significant in
the bottom panel of the column, but is positive and significant at the five-percent level in the
top panel.
       Table 6 therefore sketches a consistent pattern of the effect of minority religions on the
educational achievement of their members a country. Minority religions are less likely to
                                                 23
reduce and more likely to increase the educational achievement of their members with respect
to their fellow citizens. The finding is robust to various definitions of minority denominations.
      To make sure that this is not the case, we therefore estimated Equation 3 using
definitions of the dependent variable obtained in turn from all the specifications of Equation 2
estimated in Section 2. The results of those estimations are reported in Table 7.
                                                24
                                 *** Insert Table 7 around here ***
        Columns 7.3 and 7.4 distinguish respondents by age, as one may argue that the role of
religion may have changed over time. We therefore estimated Equation 3 separately for
respondent below and above 40 years. Yet, the results of the two columns are similar. In both
columns, the minority variable is statistically significant at the one-percent level in the top
panel of the table, and insignificant in the bottom panel.
        Finally, Columns 7.5 and 7.6 provide separate results for male and female
respondents. Again, and possibly surprisingly, we find similar results for the two genders,
suggesting that the effect of being a minority religion does not operate through a differential
effect for men and women. More precisely, we find that the minority variable is statistically
significant at the one-percent level in the top panel of the table, and insignificant in the
bottom panel for both genders.
      One may be concerned that the impact of being a minority denomination may be driven
by the behavior of immigrants, who often belong to a denomination that differs from the
denomination of the host country, which may confound or results. We therefore estimated
Equation 2 on the subset of survey respondents who were born in their country of residence.8
Column 7.7 reports those results. It confirms the positive and statistically significant effect of
being a minority denomination in the top panel of Table 7. The impact, however, turns out
statistically insignificant in the bottom panel.
        So far, we have relied on bivariate regressions. To make sure that our results are not
driven by an omitted variable bias in Equation 3, we control for a series of factors. As there is
no specification to guide us in the choice of the list of control variables to use when
estimating Equation 3, we started by including each variable in turn, before including them all
in the same regression. The outcomes of those regressions are reported in Table 8.
        In the first column, we control for the dummy variable indicating whether
denomination j is a State religion in country i. In the second column of Table 8, we control
8
  Note that the information was only available in the third wave of the World Values Survey, while the main
specification aggregates information from several waves.
                                                    25
Country i’s level of democracy as measured by the PolityIV index. In the third column, we
control for the country’s PPP GDP per capita. In Column 8.4, we control for the country’s
years of schooling. In Column 8.5, we control for the number of observations in country i. In
Column 8.6, we control for no specific variable, but include denomination fixed effects to
control for any effect of any denomination that would be constant across countries. Column
8.7 controls for all variables at the same time, and Column 8.8 adds denomination fixed
effects to the list of control variables. Column 8.9 replaces the control variables that are
country-specific by country fixed effects, while controlling for denomination fixed effects at
the same time.
       The impact of a religious denomination may depend on the denomination with which
it competes. For instance, being Christian orthodox in a country where the main other
denomination is Catholicism may result in very different incentives than being Christian
orthodox where the main other denomination is Islam. This source of heterogeneity is not
controlled by country- or denomination-fixed effects, because it is specific to denomination-
country pairs. We therefore controlled for denomination j’s main alternative in country i.
Specifically, for each denomination-country pair (j, i), we defined eight dummy variables
coding the largest denomination in country i beside denomination j. For instance, the first
dummy variable is set to one for Country i and Denomination j if Catholicism is the main
denomination beside Denomination j, and set to zero elsewhere. We defined such a dummy
variable for each denomination in our sample. Column 8.11 reports the result of a regression
controlling for those dummy variables, together with country- and denomination- fixed
effects. As an ultimate robustness check, Column 8.12 complements Column 8.11 by
controlling for the other country-denomination pair dummy, namely State religion.
       The results reported in Table 8 are homogeneous. In the nine columns of the table, the
coefficient of the minority dummy variable is positive and significant at the five-percent level
or beyond, signaling that all specifications imply that members of minority religions tend to
accumulate more education than their fellow citizens of another denomination.
       Similarly, the bottom panel of Table 8 implies that when a religion is a minority in a
country, the members of the religion are less likely to have acquired less education than their
fellow citizens. The coefficient of the minority variable in the bottom panel of Table 8 is in
general negative and statistically significant well beyond the ten-percent level. In Columns
8.7 and 8.8, where the all set of control variables are controlled for, the coefficient turns out
insignificant. However, one should remark that the number of observations in the regression
                                               26
is also limited by data availability. When those variables are replaced by fixed-country
effects, which allows controlling for all country-specific omitted variables without reducing
the size of the sample, the coefficient of the minority dummy is negative and significant at the
one-percent level.
    The dummies capturing the main alternative denomination are nearly always statistically
insignificant. Moreover none is significant in more than one specification, which is why we
do not report their coefficients. The regressions reported in Table 8, however, show that
controlling for the main alternative denomination does not affect our main conclusions. We
observe that that the minority religion dummy variable exhibits a positive coefficient in the
top panel and negative coefficient in the bottom panel of the column and that at least one of
them is statistically significant.
5. Concluding Remarks
    We have used the World Values Surveys to identify the impact of major religious
denominations on individuals’ levels of education in a large sample of countries. Two main
results emerge from our results.
    First, no denomination has a uniform effect on the level of education of its members
across countries. In other words, we find that each denomination correlates positively with
education in some countries, negatively in other countries, and does not correlate with
education in others. In a nutshell, no denomination has a universal effect on education.
    The second main result is that the propensity of a denomination to have a positive,
negative or insignificant effect on education is not randomly distributed across countries. We
provide robust evidence that minority religions are more likely to have a positive effect, and
less likely to have a negative effect on the level of education of its members. This finding is in
                                               27
line with the theories that emphasize the role of religions as a club good. The finding may also
be in line with theories that suggest that members of minority religions must invest in
education to compensate for their minority status.
    One may argue that our results capture the fact that different blends of the same religion
with different implications for education are subsumed under the same name. For instance,
Calvinists and Lutherans are pooled together under the label Protestantism, or Islam pools
together Shia and Sunni Muslims. While we cannot fully dismiss that point, it only applies to
a subset of religious denominations. It for instance does not apply to Catholicism, which is
more centralized and therefore more uniform. Yet, our findings for Catholicism are in line
with those obtained for other denominations. This is, however, food for further research.
                                              28
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                                            34
Tables
                              Table 1: Descriptive Statistics:
            Education Level, Religious Affiliation, Religiosity and Demographics
 Religious Denomination:
 Catholic                                                                           0.277
 Christian, Protestant                                                              0.158
 Christian, Orthodox                                                                0.003
 Buddhist                                                                           0.204
 Muslim                                                                             0.132
 Jewish                                                                             0.024
 Hindu                                                                              0.028
 Other affiliations                                                                 0.042
 No religious affiliation                                                           0.133
 Religiosity:
 Religious Person (yes)                                                             0.699
 Education:
 Lower (elementary education and below)                                             0.358
 Middle (intermediate & full secondary)                                             0.421
 Upper (lower & upper-level tertiary certificate)                                   0.221
 Demographic Characteristics
 Age (years)                                                                       41.217
                                                                                   (15.971)
 Female (yes)                                                                       0.508
 Married (yes)                                                                      0.591
 Social Class                                                                       3.356
 Income (decile)                                                                    4.546
                                                                                   (2.383)
                                                    35
      Table 2: Education Level and Religious Affiliation, by Religion (Ordered Logit)
               2.1         2.2        2.3        2.4          2.5       2.6        2.7       2.8        2.9
                                                                                                        No
             Catholic   Protestant   Jewish    Muslim       Orthodox   Hindu     Buddhist   Others
                                                                                                      Religion
Denominat                                         -
              0.020       -0.030     0.335**                0.166***   0.026      -0.103    0.063     0.190***
ion                                            0.548***
             (0.020)     (0.022)     (0.111)   (0.031)       (0.027)   (0.063)    (0.053)   (0.035)   (0.024)
Religiosity     yes          yes         Yes      yes        yes       yes        Yes    yes            Yes
Controls        yes          yes         Yes      yes        yes       yes        Yes    yes            Yes
Country
                yes          yes         Yes      yes        yes       yes        Yes    yes            Yes
FE
Years FE        yes          yes         Yes      yes        yes       yes        Yes    yes            Yes
Pseudo R2      0.171        0.171       0.171    0.172      0.171     0.171      0.171  0.171          0.171
Number of                                                            14704              14704
              147049       147049      147049 147049       147049               147049                147049
Obs.                                                                    9                 9
                                                        *         **        ***
 Absolute standard errors are reported between brackets. p < 0.05, p < 0.01, p < 0.001.
                                                       36
                    Table 3: The distribution of estimates across countries
    Religious Affiliation        Significant and         Not         Significant and   Number
                                   negative at      significant at     positive at        of
                                    (Row %)           (Row %)           (Row %)        countries
                                       3.1.              3.2               3.3            3.4
1% level
Catholic                               2.8              81.9              15.3            72
Christian, Protestant                 11.6              72.5              15.9            69
Christian, Orthodox                   13.2              69.8              17.0            53
Buddhist                              23.3              58.1              18.6            43
Muslim                                28.8              64.4              6.8             59
Jewish                                10.9              73.9              15.2            46
Hindu                                 18.5              55.6              25.9            27
Other affiliations                     9.8              83.6              6.6             61
No religious affiliation               1.4              86.1              12.5            72
5% level
Catholic                               8.3              68.1              23.6            72
Christian, Protestant                 17.4              56.5              26.1            69
Christian, Orthodox                   18.9              58.5              22.6            53
Buddhist                              23.3              51.2              25.6            43
Muslim                                39.0              52.5              8.5             59
Jewish                                13.0              65.2              21.7            46
Hindu                                 18.5              51.9              29.6            27
Other affiliations                    13.1              75.4              11.5            61
No religious affiliation               2.8              75.0              22.2            72
10% level
Catholic                              11.1              59.7              29.2            72
Christian, Protestant                 20.3              50.7              29.0            69
Christian, Orthodox                   20.8              56.6              22.6            53
Buddhist                              25.6              44.2              30.2            43
Muslim                                39.0              50.8              10.2            59
Jewish                                13.0              60.9              26.1            46
Hindu                                 22.2              48.1              29.6            27
Other affiliations                    13.1              73.8              13.1            61
No religious affiliation               5.6              62.5              31.9            72
                                               37
                             Table 4: Distribution of Estimates across Countries by Specification
                              Benchmark       No          No      Young       Old    Men     Women    Native      Raised
                                          Religiosity   Income    (<41)      (>40)                     only     religiously
                                                                                                     (wave 3)    (wave 3)
                                  4.1        4.2         4.3          4.4     4.5     4.6     4.7       4.8         4.9
Catholic
% Significant and negative       11.1        16.7         8.3          9.7   15.3    12.5     8.3      17.5        13.6
% Significant and positive       29.2        27.8        29.2         23.6   22.2    27.8     22.2     12.5        9.1
% Not significant                59.7        55.6        62.5         66.7   62.5    59.7     69.4      70         77.3
Identical to benchmark at:                  91.0%       92.3%     70.5%      75.6%   74.4%   75.6%   87.2%        93.6%
Protestant
% Significant and negative       20.3        20.3        20.3         15.9   17.4    17.4     17.4     17.5        15.9
% Significant and positive       27.5        27.5        27.5         21.7   30.4    18.8     34.8      15         13.6
% Not significant                52.2        52.2        52.2         62.3   52.2    63.8     47.8     67.5        70.5
Identical to benchmark at:                  97.4%       94.9%     76.9%      74.4%   80.8%   75.6%   91.0%        92.3%
Orthodox
% Significant and negative       20.8        20.8        22.6         22.6   22.6    18.9     9.4      17.2        18.8
% Significant and positive       22.6        22.6        22.6         28.3   28.3    28.3     32.1     34.5        28.1
% Not significant                56.6        56.6        54.7         49.1   49.1    52.8     58.5     48.3        53.1
Identical to benchmark at:                 100.0%       98.7%     82.1%      78.2%   82.1%   80.8%   92.3%       100.0%
Buddhist
% Significant and negative       25.6        25.6        27.9         23.3   18.6    25.6     25.6     8           11.1
% Significant and positive       30.2        27.9        27.9         32.6   51.2    48.8     39.5     68          66.7
% Not significant                44.2        46.5        44.2         44.2   30.2    25.6     34.9     24          22.2
Identical to benchmark at:                  98.7%       94.9%     89.7%      80.8%   85.9%   82.1%   94.9%        98.7%
Muslim
% Significant and negative       38.3        38.3         40          38.3   41.7     35      48.3     27.6        35.5
% Significant and positive       11.7         15         11.7         16.7   23.3     15       20      34.5        16.1
% Not significant                 50         46.7        48.3          45     35      50      31.7     37.9        48.4
                                                                 38
Identical to benchmark at:          97.4%   91.0%    74.4%      73.1%   84.6%   70.5%   87.2%   94.9%
Jewish
% Significant and negative    13    10.9    15.2         17.4   21.7    10.9    26.1     10     8.8
% Significant and positive   26.1   26.1    28.3         45.7   34.8    45.7    39.1    56.7    61.8
% Not significant            60.9    63     56.5          37    43.5    43.5    34.8    33.3    29.4
Identical to benchmark at:          98.7%   94.9%    75.6%      80.8%   78.2%   79.5%   94.9%   98.7%
Hindu
% Significant and negative   22.2   22.2    14.8         22.2   11.1    14.8    22.2    13.3    12.5
% Significant and positive   29.6   33.3    29.6         40.7   59.3    48.1    48.1     60     68.8
% Not significant            48.1   44.4    55.6          37    29.6     37     29.6    26.7    18.8
Identical to benchmark at:          98.7%   96.2%    88.5%      89.7%   92.3%   88.5%   96.2%   97.4%
Other Affiliations
% Significant and negative   13.1   14.8    19.7         16.4   21.3    8.2     19.7     0       3
% Significant and positive   13.1   14.8    13.1         21.3    18     21.3    16.4    23.3    27.3
% Not significant            73.8   70.5    67.2         62.3   60.7    70.5    63.9    76.7    69.7
Identical to benchmark at:          97.4%   92.3%    73.1%      80.8%   79.5%   79.5%   93.6%   98.7%
No Religious Affiliation
% Significant and negative    5.4    8.1     4.1          9.5    5.4    5.4     10.8     0      2.3
% Significant and positive   33.8   32.4    36.5         10.8   35.1     27     25.7     20     22.7
% Not significant            60.8   59.5    59.5         79.7   59.5    67.6    63.5     80      75
Identical to benchmark at:          88.5%   93.6%    66.7%      73.1%   78.2%   71.8%   89.7%   94.9%
                                                    39
                             Table 5: Minority religions in our sample
            Number of countries    Number of countries   Percentage of countries
           where the denomination where the denomination where the denomination
                  is present           is a minority          is a minority
Catholic              72                     26                   36.11
Protestant            69                     32                   46.38
Muslim                60                     31                   51.67
Orthodox              53                     34                   64.15
Jewish                46                     46                    100
Buddhist              43                     36                   83.72
Hindu                 27                     24                   88.89
Notes: A denomination is considered as a minority in a country if its share of followers in the
country is smaller or equal to five-percent according to the World Values Survey
                                                     40
                        Table 6: Impact of being a minority religion: alternative definitions of religious minorities
                                          (6.1)          (6.2)         (6.3)          (6.4)          (6.5)            (6.6)           (6.7)            (6.8)
Definition of the minority dummy          <1%            <5%           <10%           <20%           <30%             <40%            <50%          Share others
Modality of the dependent variable
Positive and significant at 10%
Minority religion                        0.467*        0.574**         0.488*         0.348         0.737**           0.745*          0.728*          1.104**
                                         (0.256)       (0.282)         (0.295)       (0.309)        (0.364)           (0.395)         (0.442)         (0.560)
Negative and significant at 10%
Minority religion                        -0.529*      -0.753***       -0.717***       -0.521*         -0.369          -0.587*         -0.619*        -0.939**
                                         (0.275)       (0.270)         (0.272)        (0.284)        (0.301)          (0.307)         (0.331)         (0.422)
Observations                               370           370             370            370            370              370             370             370
Number of minority denominations           179           229             250            272            292              301             315              -
                                              Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1.
                                                                            41
                                                   Table 8: Impact of being a minority religion with control variables
                                   (8.1)       (8.2)        (8.3)       (8.4)       (8.5)          (8.6)       (8.7)       (8.8)       (8.9)      (8.10)      (8.11)      (8.12)
 Modality of the dep. var.
 Positive and significant at 10%
 Minority religion (<5%)         0.584**     0.635**       0.592**     0.993***    0.598**       0.694**      1.202***   1.443***    1.040***    1.072**     1.106**     1.320**
                                 (0.296)     (0.296)       (0.285)      (0.324)    (0.283)       (0.317)        (0.364)    (0.404)    (0.400)    (0.418)     (0.491)     (0.515)
 State religion                   0.0800                                                                         0.217      0.275                 0.240                   2.965*
                                 (0.714)                                                                        (0.868)    (0.875)               (1.047)                 (1.539)
 Democracy                                  -0.000818                                                           0.0142     0.0109
                                             (0.0262)                                                          (0.0376)   (0.0380)
 GDP                                                      -7.36e-06                                           -1.57e-05  -1.38e-05
                                                          (1.02e-05)                                         (1.66e-05) (1.68e-05)
 Years of schooling                                                    -0.0305                                 -0.00152  0.000887
                                                                       (0.0547)                                (0.0830)   (0.0846)
 Number of obs. in country i                                                       -0.000107                  -0.000109 -0.000109
                                                                                  (0.000111)                 (0.000121) (0.000123)
                                                                                            42
Figures
Fig. 1: The distribution of estimates across countries controlling for religiosity (10% significance)
                                                                                                                            73.8
                     70
                                                                                                 60.9                                  62.5
                            59.7
                     60                               56.6
                                          50.7                                     50.8
                                                                                                              48.1
                     50                                             44.2
                                                                                 39
                     40
                                                                         30.2                                                                 31.9
                                 29.2          29                                                                  29.6
                     30                                           25.6                               26.1
                                                           22.6                                             22.2
                                        20.3        20.8
                     20
                                                                                                13                        13.1 13.1
                          11.1                                                        10.2
                     10                                                                                                               5.6
                                                                            43
Appendix A: Additional Tables
                                                                   44
          Table A2: Country−denomination−specific Coefficients: Sign and Statistical Significance at 10%
Country /                                                                                                                  No
                        Catholic    Protestant   Orthodox    Buddhist    Hindu       Jewish      Muslim      Others
Denomination                                                                                                              Relig.
Albania                 Not Sign.    Not Sign.      +        Not Pres.   Not Pres.   Not Sign.      −           +           −
Algeria                 Not Pres.    Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.      +
Andorra                    −         Not Sign.      +        Not Pres.   Not Sign.   Not Pres.   Not Sign.      +        Not Sign.
Azerbaijan              Not Sign.    Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Sign.      −        Not Pres.      +
Argentina               Not Sign.       −           +             +         +        Not Sign.   Not Pres.   Not Sign.   Not Sign.
Australia                  −         Not Sign.   Not Sign.   Not Sign.      +           +        Not Sign.   Not Sign.      +
Bangladesh              Not Sign.    Not Sign.      −        Not Sign.   Not Sign.      +        Not Sign.   Not Pres.   Not Sign.
Armenia                 Not Sign.       +        Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.
Bosnia and
                        Not Sign.    Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Pres.   Not Sign.
Herzegovina
Brazil                  Not Sign.       −           −        Not Sign.   Not Pres.      +        Not Pres.      +        Not Sign.
Bulgaria                Not Sign.    Not Sign.      +             −      Not Sign.      +           −           +        Not Sign.
Belarus                    −         Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Pres.   Not Sign.
Canada                     −            +        Not Sign.        +      Not Sign.   Not Sign.   Not Sign.   Not Sign.   Not Sign.
Chile                   Not Sign.       −        Not Pres.   Not Pres.      −        Not Sign.   Not Pres.   Not Sign.      +
China                      +         Not Sign.      −        Not Sign.   Not Pres.   Not Pres.   Not Sign.   Not Pres.   Not Sign.
Taiwan                     +         Not Sign.   Not Pres.   Not Sign.   Not Pres.   Not Pres.      +        Not Sign.      +
Colombia                Not Sign.    Not Sign.   Not Pres.   Not Pres.   Not Pres.      +        Not Pres.   Not Sign.   Not Sign.
Cyprus                  Not Sign.       +           +        Not Pres.   Not Pres.      +           −        Not Sign.      +
Czech republic          Not Sign.    Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.
Dominican Republic      Not Sign.    Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.
El Salvador                +            −        Not Pres.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.
Ethiopia                   +            +           −             −      Not Pres.   Not Sign.      −        Not Sign.   Not Sign.
Estonia                 Not Sign.    Not Sign.   Not Sign.        +      Not Pres.   Not Pres.   Not Sign.   Not Pres.      −
Finland                 Not Sign.       −        Not Sign.   Not Pres.   Not Pres.   Not Sign.   Not Sign.      +           +
Georgia                 Not Sign.    Not Sign.   Not Sign.        −      Not Sign.      −        Not Sign.   Not Sign.   Not Sign.
                                                             45
Germany           −        Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.      +
Ghana             +        Not Sign.   Not Sign.        −      Not Pres.   Not Pres.      −        Not Sign.   Not Sign.
Hong kong      Not Sign.      +        Not Pres.        −         +        Not Pres.   Not Sign.      −           +
India             +           +           +             −      Not Sign.   Not Sign.      −        Not Sign.   Not Sign.
Indonesia         +           +        Not Pres.   Not Pres.   Not Pres.   Not Pres.      −        Not Sign.   Not Sign.
Iran           Not Sign.   Not Pres.      +        Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Sign.
Iraq              +        Not Pres.   Not Sign.   Not Pres.   Not Pres.   Not Pres.      −           +           +
Italy          Not Sign.   Not Pres.   Not Pres.   Not Sign.      −        Not Pres.   Not Pres.   Not Sign.      +
Japan             +           +        Not Sign.   Not Sign.   Not Pres.   Not Sign.   Not Pres.   Not Sign.   Not Sign.
Jordan            +        Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.      −           −        Not Pres.
South Korea       +        Not Sign.      +        Not Sign.      +           −           +           +        Not Sign.
Kyrgyzstan        +           +        Not Sign.   Not Sign.      +        Not Sign.      −        Not Sign.      +
Latvia         Not Sign.   Not Sign.   Not Sign.        −      Not Pres.   Not Sign.      +        Not Pres.   Not Sign.
Lithuania      Not Sign.   Not Sign.   Not Sign.   Not Pres.   Not Sign.      +        Not Sign.   Not Pres.   Not Sign.
Mali              +           +           −        Not Pres.   Not Sign.   Not Sign.      −        Not Sign.   Not Pres.
Mexico         Not Sign.      −        Not Pres.        +         +        Not Sign.   Not Sign.   Not Sign.      +
Moldova        Not Sign.   Not Sign.      −        Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Sign.      +
Morocco        Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.      +        Not Pres.   Not Pres.
New Zealand    Not Sign.      −        Not Pres.   Not Sign.   Not Sign.      +        Not Sign.   Not Sign.      +
Nigeria           +           +        Not Pres.   Not Pres.   Not Pres.   Not Sign.      −        Not Sign.   Not Sign.
Norway            +           −        Not Sign.   Not Sign.   Not Pres.      −        Not Sign.   Not Sign.      +
Pakistan       Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.      −        Not Pres.      +
Peru              +           −        Not Pres.        +      Not Sign.   Not Sign.   Not Pres.   Not Sign.   Not Sign.
Philippines    Not Sign.      +        Not Pres.   Not Pres.   Not Pres.   Not Pres.      +        Not Sign.      −
Poland         Not Sign.   Not Sign.   Not Sign.        −      Not Pres.      −        Not Pres.   Not Sign.      +
Puerto Ricco   Not Sign.      −        Not Pres.   Not Sign.   Not Pres.   Not Sign.   Not Pres.   Not Sign.   Not Sign.
Romania        Not Sign.   Not Sign.   Not Sign.        +      Not Pres.   Not Sign.      −        Not Pres.   Not Sign.
                                                   46
Russian federation         +           +        Not Sign.        +      Not Pres.      +        Not Sign.   Not Pres.   Not Sign.
Rwanda                     −        Not Sign.      −             +      Not Pres.      −        Not Sign.      −        Not Sign.
Saudi Arabia            Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Pres.   Not Sign.   Not Sign.      −
Slovakia                Not Sign.   Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.
Vietnam                    −        Not Sign.      −        Not Sign.   Not Pres.      −        Not Pres.      −           +
Slovenia                Not Sign.   Not Sign.      −             +      Not Pres.   Not Pres.   Not Sign.   Not Sign.      +
South Africa            Not Sign.   Not Sign.      −        Not Sign.      −           +        Not Sign.   Not Sign.   Not Sign.
Zimbabwe                Not Sign.   Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Sign.
Spain                   Not Sign.   Not Sign.   Not Pres.   Not Sign.   Not Pres.   Not Pres.      −        Not Sign.   Not Sign.
Sweden                     +           −        Not Sign.        −      Not Pres.   Not Sign.   Not Sign.   Not Sign.      +
Switzerland                −        Not Sign.      +             +         +        Not Sign.   Not Sign.   Not Sign.      +
Thailand                Not Pres.      −        Not Pres.        −      Not Pres.   Not Pres.      +           −        Not Sign.
Trinidad and Tobago        +        Not Sign.   Not Sign.   Not Sign.      −        Not Pres.   Not Sign.      −        Not Sign.
Turkey                  Not Sign.   Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Sign.      +
Uganda                  Not Sign.   Not Sign.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Sign.   Not Sign.   Not Sign.
Ukraine                 Not Sign.      +        Not Sign.        +         −        Not Sign.   Not Sign.   Not Pres.      +
Macedonia               Not Sign.      +           +        Not Pres.   Not Pres.   Not Sign.      −        Not Sign.      +
Egypt                   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.   Not Pres.      −           +        Not Pres.
Tanzania                   +           +        Not Sign.   Not Pres.   Not Pres.   Not Sign.      −        Not Sign.   Not Sign.
United states           Not Sign.      +        Not Sign.   Not Sign.   Not Sign.      +           +           −        Not Sign.
Burkina Faso               +           +           −        Not Pres.      −           +           −           −        Not Sign.
Uruguay                 Not Sign.      −        Not Pres.        +      Not Pres.   Not Sign.   Not Pres.   Not Sign.   Not Sign.
Venezuela               Not Sign.      −        Not Sign.        +         +        Not Pres.   Not Pres.   Not Sign.   Not Sign.
Serbia and Montenegro   Not Sign.   Not Sign.   Not Sign.        −      Not Pres.   Not Sign.      −        Not Sign.   Not Sign.
Zambia                  Not Sign.      +           +        Not Sign.   Not Sign.   Not Pres.      −        Not Sign.   Not Sign.
Serbia                  Not Sign.   Not Sign.      +        Not Pres.   Not Pres.   Not Sign.      −        Not Pres.   Not Sign.
                                                            47
Number of
Countries/Regressions   72   69   53        43   60   46   27   61   74
(by denomination):
48