Households Giving to Religion vs. Households Not Giving to Religion: Are Their Household Characteristics and Expenditure Patterns Different?
Vince E. Showers
Bradley University
Linda S. Showers
Illinois State University
Hulda G. Black
Illinois State University
Jeri M. Beggs
Illinois State University
James E. Cox, Jr.
Illinois State University
Abstract: This study examines differences in expenditure patterns and characteristics of households giving to religion (religiously committed households) versus households not giving to religion. In addition, expenditure patterns and demographic characteristics are examined among religious givers based on four categories of percent of income given to religion. A permanent income measure represents households’ perceived incomes and controls for large income variations and skewness. Descriptive statistics and parametric and nonparametric statistical tests are used to examine differences among households. Significant differences in demographics are found among households at different levels of giving to religion. Also, per dollar of income spent on tobacco and alcohol, as well as health and life insurance expenditures, differ between households giving to religion and households not giving to religion. No differences in percent of income spent are found between these two groups for “pleasure” and “necessity” items. Households with the highest percent of income given to religion give more to charities compared to households not giving to religion. This study offers significant evidence of the impact of faith on marketplace behavior, especially in charitable giving and family health and welfare.
JEL Codes: D12, E21, Z12.
Keywords: Religiosity, household expenditures, household characteristics, CEX data, permanent income hypothesis.