Religion and Financial Hardship

51 Pages Posted: 25 Apr 2024 Last revised: 1 Apr 2025

See all articles by William Bazley

William Bazley

University of Kansas

Carina Cuculiza

Oklahoma State University - Stillwater - Spears School of Business

Da Ke

University of South Carolina - Department of Finance

Date Written: April 23, 2024

Abstract

This paper investigates whether religion shapes household financial outcomes. To address selection into religiosity, we employ an instrumental variable strategy that exploits arguably exogenous within-school, cross-cohort variation in peer influences during adolescence. We document that more religious households are less likely to experience financial hardship. This buffering effect is most pronounced among low socioeconomic status groups. Further investigation reveals that greater religiosity lowers the likelihood of financial hardship by improving patience, enhancing self-control, and easing psychological distress.

Keywords: religion, financial hardship, self-control, psychological distress

JEL Classification: D91, G4, G5, Z12

Suggested Citation

Bazley, William and Cuculiza, Carina and Ke, Da, Religion and Financial Hardship (April 23, 2024). Available at SSRN: https://ssrn.com/abstract=4805214 or http://dx.doi.org/10.2139/ssrn.4805214

William Bazley

University of Kansas ( email )

3143 Capitol Federal Hall
1654 Naismith Drive
Lawrence, KS 66045
United States

Carina Cuculiza

Oklahoma State University - Stillwater - Spears School of Business ( email )

201 Business
Stillwater, OK 74078-0555
United States

Da Ke (Contact Author)

University of South Carolina - Department of Finance ( email )

1014 Greene Street
Columbia, SC 29208
United States

HOME PAGE: http://www.dakefinance.com

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