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Substitution and Stigma: Evidence on Religious Markets from the Catholic Sex Abuse Scandal

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  • Daniel M. Hungerman

Abstract

This paper considers substitution between charitable activities in the context of religious practice by examining the Catholic Church sex abuse scandal's impact on both Catholic and non-Catholic religiosity. I find a fall in the Catholic population compensated by increases in non-Catholic participation and nonaffiliation. Back-of-the-envelope calculations suggest the scandal generated about $3 billion dollars in donations to non-Catholic faiths. Those leaving Catholicism frequently chose dissimilar alternatives: Baptist churches gained significantly while the Episcopal Church did not. These results challenge several theories of religiosity and suggest that policies or shocks specific to one religious group could have effects on other groups.

Suggested Citation

  • Daniel M. Hungerman, 2013. "Substitution and Stigma: Evidence on Religious Markets from the Catholic Sex Abuse Scandal," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 227-253, August.
    • Handle: RePEc:aea:aejpol:v:5:y:2013:i:3:p:227-53
    Note: DOI: 10.1257/pol.5.3.227
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    Cited by:

    1. Hill, Elaine L. & Slusky, David J.G. & Ginther, Donna K., 2019. "Reproductive health care in Catholic-owned hospitals," Journal of Health Economics, Elsevier, vol. 65(C), pages 48-62.
    2. Ali Moghtaderi, 2018. "Child Abuse Scandal Publicity and Catholic School Enrollment: Does the Boston Globe Coverage Matter?," Social Science Quarterly, Southwestern Social Science Association, vol. 99(1), pages 169-184, March.
    3. Sriya Iyer, 2016. "The New Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 395-441, June.
    4. Daniel M. Hungerman & Kevin Rinz & Jay Frymark, 2019. "Beyond the Classroom: The Implications of School Vouchers for Church Finances," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 588-601, October.
    5. Candon Johnson & Bryan C. McCannon, 2022. "Athletics and Admissions: The Impact of the Penn State Football Scandal on Student Quality," Journal of Sports Economics, , vol. 23(2), pages 200-221, February.
    6. Michael W. Walrath, 2016. "Entry Models Applied to Churches: Could Protestants use a Catholic Bishop to Solve Excess Entry?," Journal of Industrial Economics, Wiley Blackwell, vol. 64(3), pages 557-588, September.
    7. Celhay, Pablo & Meyer, Bruce D. & Mittag, Nikolas, 2022. "Stigma in Welfare Programs," IZA Discussion Papers 15431, Institute of Labor Economics (IZA).
    8. Becker, Sascha O. & Pfaff, Steven, 2022. "Church and State in historical political economy," The Warwick Economics Research Paper Series (TWERPS) 1409, University of Warwick, Department of Economics.
    9. Gianandrea Lanzara & Sara Lazzaroni & Paolo Masella & Mara P. Squicciarini, 2023. "Do Bishops Matter for Politics? Evidence From Italy," Working Papers wp1179, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Bottan, Nicolas L. & Perez-Truglia, Ricardo, 2015. "Losing my religion: The effects of religious scandals on religious participation and charitable giving," Journal of Public Economics, Elsevier, vol. 129(C), pages 106-119.
    11. Mancini, Christina, 2022. "A test of faith: Exploring the attitudes and experiences of Catholics in the aftermath of the Church's child sexual abuse scandal," Journal of Criminal Justice, Elsevier, vol. 82(C).
    12. Dills, Angela K. & Hernández-Julián, Rey, 2014. "Religiosity and state welfare," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 37-51.
    13. Cowan, Arnold R. & Gao, Lei & Han, Jianlei & Pan, Zheyao, 2024. "Local religiosity and financial advisor misconduct," Journal of Corporate Finance, Elsevier, vol. 86(C).
    14. Benjamin Bittschi & Sarah Borgloh & Berthold U. Wigger, 2020. "Philanthropy in a Secular Society," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(4), pages 640-664.
    15. Annalisa Frigo & Elisabetta Lodigiani & Sara Salomone, 2021. "For Children's Sake: Intergenerational Altruism and Parental Migration Intentions," LIDAM Discussion Papers IRES 2021030, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    16. Bittschi, Benjamin & Borgloh, Sarah & Wigger, Berthold, 2015. "Secularization, tax policy and prosocial behavior," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113065, Verein für Socialpolitik / German Economic Association.
    17. Brummund, Peter & Makowsky, Michael D., 2024. "Monopsony and Local Religious Clubs: Evidence from Indonesia," IZA Discussion Papers 16999, Institute of Labor Economics (IZA).
    18. Lanzara, Gianandrea & Lazzaroni, Sara & Masella, Paolo & Squicciarini, Mara P., 2024. "Do bishops matter for politics? Evidence From Italy," Journal of Public Economics, Elsevier, vol. 238(C).

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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    1. Substitution and Stigma: Evidence on Religious Markets from the Catholic Sex Abuse Scandal (American Economic Journal: Economic Policy 2013) in ReplicationWiki

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