| Abstract: |
This paper focusses on the insurance role of religion in buffering the
well-being impact of stressful life events, and the ensuing economic and
social implications. Using two large-scale European data sets, we show that
the religious enjoy higher levels of life satisfaction, and that religion does
insure against some adverse life events. All denominations suffer less
psychological harm from unemployment than do the non-religious; equally both
Catholics and Protestants are less hurt by marital separation. However, while
Protestants are protected against divorce, Catholics are punished for it.
These results do not seem to come about from the endogeneity of religion.
These patterns in subjective well-being correspond to data on both attitudes
(the religious are both anti-divorce and anti-job creation for the unemployed)
and behaviour (the religious unemployed are less likely to be actively looking
for work). In panel data, as implied by insurance, the religious have less
variation in life satisfaction. Last, we suggest that religion’s insurance
role might be reflected in support for different economic and social systems:
consistent with this, unemployment replacement rates across Europe are lower
in more religious countries. |