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Long Term Neighborhood Effects of Religious Preferences

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  • Chuhang Yin Geissler

Abstract

Combined with neighborhood effects, homophily preferences can reinforce poverty traps for initially disadvantaged populations. Using a panel of individuals from Glasgow, Scotland with reported religious beliefs, socioeconomic status and residential locations over twenty years, I estimate a residential sorting model where preferences for neighborhood religious composition vary by current income and religious background, which is defined as the largest religious group in childhood neighborhood. Results suggest religious homophily is the strongest for low income individuals with Catholic and non-Christian backgrounds. Homophily preferences are weakest for Protestant Christians and secular individuals. Absence of the heterogeneity in religious preferences would lead to reduced segregation and a 3.8% increase in average neighborhood income for those with Catholic and non-Christian backgrounds at the lowest income quartile. This neighborhood inequality can translate into differences in adult earnings across religious backgrounds through neighborhood effects.

Suggested Citation

  • Chuhang Yin Geissler, 2021. "Long Term Neighborhood Effects of Religious Preferences," Annals of Economics and Statistics, GENES, issue 142, pages 251-282.
    • Handle: RePEc:adr:anecst:y:2021:i:142:p:251-282
    DOI: https://doi.org/10.15609/annaeconstat2009.142.0251
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    More about this item

    Keywords

    Religious Preferences; Residential Sorting; Neighborhood Effects; Inequality.;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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