Todd P. Steen

Religion and earnings: evidence from the NLS Youth Cohort

Does religious and denominational background still affect earnings and human capital investment? Several earlier studies suggest that they do, but all of these previous studies were conducted on data from the 1970s and early 1980s. Examines religious background and human capital formation for a sample of males from the National Longitudinal Survey Youth Cohort (1991). Provides survey information that makes it possible to control better the many components of family background in order to isolate the impact of religion and denomination. Uses the estimation of human capital earnings functions similar to Tomes’ (1984) method. Finds that men raised as Catholics or Jews have higher incomes than men raised as Protestants, other things being held equal. When the dependent variable used for the analysis is the logarithm of hourly wages, men raised either as Catholics or Jews were also found to have higher wages. Contains results from analyses of men within various Protestant denominations, as well as results for different racial and ethnic groups.

The relationship between religion and earnings: recent evidence from the NLS Youth Cohort

Does religious and denominational background affect earnings and human capital investment? This paper examines religious background and human capital formation for a sample of males from the year 2000 wave of the National Longitudinal Survey Youth 1979 Cohort. This survey provides information that makes it possible to control better for many components of family background in order to isolate the impact of religion and denomination. The paper contains results from analyses of men within broad religious categories as well as within various Protestant denominations, and reports results for different racial and ethnic groups. The method used for the analysis is the estimation of human capital earnings functions. The paper finds evidence that both men raised as Catholics and men raised as Jews have higher earnings, holding other characteristics constant.

An investigation into the effects of ethnicity and immigration on self-employment

This paper examines self-employment across industries and states in the U.S. It attempts to determine whether self-employment is due more to pull or push factors and whether one or the other model fits some industries better or fits some states better. The 1990 Public Use Microdata Samples from the U.S. Census Bureau are used in the empirical analysis. It is found that self-employment rates differ considerably across ethnic groups, and that the rate of self-employment tends to be higher for immigrants. This paper also finds that increasing urbanization tends to reduce self-employment rates while the shift from manufacturing to service industries tends to increase self-employment rates.

Investing in Stocks: Three Models of Faith Integration

Purpose –The purpose of this paper is to explore the role of Christian investors and the responsibility to promote justice and stewardship. Design/methodology/approach - This paper examines three models of integrating the Christian faith with investing in the stock market. The first model considers investing in the stock market with minimal ethical discretion, looking at possible justifications for such behavior. The second model looks at the practice of avoidance of the stock market. The third model examines the ethic of active stewardship, where individuals more closely monitor the ethical behavior of firms. Findings - Buying stock in a company makes one a part owner of that firm, and as an owner Christians have responsibilities to promote justice and stewardship within that firm. Although Christians may differ on the proper model for responding to this responsibility, the goal of all Christians should be to encourage fair business practices, honest labor-management relations, care for the environment, and the production of goods that are truly useful in today’s society. Practical implications - All three models can be based on various understandings of the Christian scriptures. The authors assert that whatever model is chosen, Christians need to look beyond just monetary returns when making investment decisions. Originality/value - The value of this paper is that it explores the difficulty of integrating the Christian faith with investing and offers a model for being a responsible Christian investor.

Finance: on earth as it is in heaven?

Purpose –The purpose of this paper is to explore a Christian perspective on the field of finance. Design/methodology/approach - This paper begins by examining the theoretical underpinnings of finance and how finance is practiced today. The paper then considers the implications of a reformed Christian worldview for finance, with special attention to the implications of the Biblical description of heaven for the practice of finance. The paper concludes by offering suggestions for the practice of finance. Findings - Finance as it practiced today is overly concerned with short-term considerations, shareholder interests over those of other stakeholders, and contractual relationships over other types of relationships. A model based on the Christian Scriptures that utilizes the themes of creation, fall, redemption, and consummation can be used to critique both the theory and practice of finance. This model suggests that finance is part of God’s intended structure for the world, and that it should contribute to the promotion of shalom, that is the universal flourishing of both humankind and the earth. Practical implications - An examination of the Christian Scriptures provides a model for the practice of corporate finance. The authors assert that finance should be covenantal, long-term oriented, inclusive, and stakeholder-driven, and that it should promote the cause of justice. Originality/value - The value of this paper is that it develops a Christian perspective on finance based on the reformed tradition of Christianity; it also offers suggestions for the practice of finance.

Religion and earnings: evidence from Germany

Purpose – The purpose of this paper is to estimate the association between religious affiliation and the rate of return to human capital for German men and women. Design/methodology/approach – This paper employs data from the 1997, 2003, 2007 and 2011 waves of the German Socio-Economic Panel for German men and women in full-time employment between the age of 25 and 54. The association between religious affiliation and wages was estimated using a conventional human capital model. Findings – This paper finds that Catholic men (women) received a wage premium of 4 per cent (3 per cent) relative to their Protestant counterparts, even after controlling for an extensive range of demographic, economic and social characteristics. Originality/value – The study contributes to the literature by providing – to the best of the authors’ knowledge – the first results on the wage premium received by Catholic men and women in the German labour market.

Church attendance, faith and the allocation of time: evidence from Australia

Purpose To examine the determinants of church attendance and the formation of ‘religious human capital’ using a Becker-inspired allocation-of-time framework. Design/methodology/approach Data derived from three waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey were used to estimate a reduced form two-equation system where the endogenous variables were frequency of attendance at religious services and intensity of faith. Findings Our results indicate that while the hourly wage rate accounts for some of the variation in our attendance and faith regressions (i.e., higher wages lead to lower levels of attendance and faith), ‘allocation of time’ variables like working long hours also influence these dimensions. Our findings also suggest that the decision to attend or not or to have any faith at all is generally independent from economic factors. However, once the decision to attend or to have faith is made, an individual’s wage influences the degree of attendance or faith to a significant level. Originality/value Our study contributes to this embryonic body of empirical literature by providing – to the best of our knowledge – the first results for Australia.

The Argument for Teaching Financial Literacy at Higher-Education Institutions

ABSTRACT Evidence suggests that financial decisions have a substantial impact on human flourishing. This paper examines the arguments for higher-education institutions to take a role in the provision of financial education for their students, families and alumni, who often incur substantial debt and make other sacrifices to obtain a postsecondary education. It also analyzes the current state of financial education at 322 higher-education institutions. While many postsecondary institutions have embraced some aspects of financial education, other higher-education institutions appear reluctant to infuse this multidisciplinary topic into their academic programs. Colleges and universities should consider developing robust programs that boost financial literacy and improve lifelong economic well-being.